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The effects of cultural heritage on residential property values: Evidence from Lisbon, Portugal

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  • Franco, Sofia F.
  • Macdonald, Jacob L.

Abstract

We estimate the cultural heritage amenity impact on the residential real estate market of Lisbon, Portugal, paying particular attention to heterogeneity of types and capturing spatial dependencies through a spatial error model. Our heritage amenities include conservation areas, listed historic buildings, and designated heritage which includes churches, palaces, historic buildings and lithic structures. We construct gridded spatial fixed effects which mitigate biases from the modifiable areal unit problem, and further employ a geographic regression discontinuity ensuring the robustness of results. The analysis is complemented with spatial interactions and mixed geographically weighted regressions (MGWR) to explore spatial heterogeneity of impacts.

Suggested Citation

  • Franco, Sofia F. & Macdonald, Jacob L., 2018. "The effects of cultural heritage on residential property values: Evidence from Lisbon, Portugal," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 35-56.
    • Handle: RePEc:eee:regeco:v:70:y:2018:i:c:p:35-56
    DOI: 10.1016/j.regsciurbeco.2018.02.001
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    Cited by:

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    2. David Boto-García & Veronica Leoni, 2023. "The Economic Value of Coastal Amenities: Evidence from Beach Capitalization Effects in Peer-to-Peer Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 529-557, February.
    3. Roni Armis & Hidehiko Kanegae, 2021. "Regional competitiveness of a post‐mining city in tourism: Ombilin coal mining heritage of Sawahlunto, Indonesia," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1888-1910, December.
    4. Vladislavas Kutut & Natalija Lepkova & Sabina Zrobek, 2021. "Immovable Cultural Heritage Usage Modes: Theoretical Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 1136-1151.
    5. Portillo, Javier E. & Wagner, Gary A., 2021. "Do cultural districts spur urban revitalization: Evidence from Louisiana," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 651-673.
    6. Yue Chen & Jianqiang Yang, 2018. "The Chinese Socio-Cultural Sustainability Approach: The Impact of Conservation Planning on Local Population and Residential Mobility," Sustainability, MDPI, vol. 10(11), pages 1-18, November.
    7. Liao, Wen-Chi & Jing, Kecen & Lee, Chaun Ying Rachel, 2022. "Economic return of architecture awards: Testing homebuyers’ motives for paying more," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    8. Roni Armis & Hidehiko Kanegae, 2020. "The attractiveness of a post-mining city as a tourist destination from the perspective of visitors: a study of Sawahlunto old coal mining town in Indonesia," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 443-461, June.
    9. Bertacchini, Enrico & Revelli, Federico & Zotti, Roberto, 2024. "The economic impact of UNESCO World Heritage: Evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    10. Franco, Sofia F. & Santos, Carlos Daniel, 2021. "The impact of Airbnb on residential property values and rents: Evidence from Portugal," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    11. Bade, David & Castillo, Jose Gabriel & Fernandez, Mario Andres & Aguilar-Bohorquez, Joseph, 2020. "The price premium of heritage in the housing market: evidence from Auckland, New Zealand," Land Use Policy, Elsevier, vol. 99(C).
    12. Fan Liu & Min Min & Ke Zhao & Weiyan Hu, 2020. "Spatial-Temporal Variation in the Impacts of Urban Infrastructure on Housing Prices in Wuhan, China," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    13. Sanja Tišma & Mira Mileusnić Škrtić & Sanja Maleković & Daniela Angelina Jelinčić, 2021. "Cost–Benefit Analysis in the Evaluation of Cultural Heritage Project Funding," JRFM, MDPI, vol. 14(10), pages 1-21, October.
    14. Zhou, Yang, 2021. "The political economy of historic districts: The private, the public, and the collective," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    15. Chin Tiong Cheng & Gabriel Hoh Teck Ling & Hon-Choong Chin & Pau Chung Leng, 2023. "Effects of Multifaceted Street Art on Price Premium of Pre War Commercial Buildings: The Case of Georgetown UNESCO World Heritage Site," Land, MDPI, vol. 12(3), pages 1-24, March.
    16. Daniel Lo & Kwong Wing Chau & Siu Kei Wong & Michael McCord & Martin Haran, 2022. "Factors Affecting Spatial Autocorrelation in Residential Property Prices," Land, MDPI, vol. 11(6), pages 1-16, June.
    17. Mario A. Fernandez & Shane L. Martin, 2020. "What’s so special about character?," Urban Studies, Urban Studies Journal Limited, vol. 57(16), pages 3236-3251, December.
    18. Tris Kee & Kwong Wing Chau, 2020. "Adaptive reuse of heritage architecture and its external effects on sustainable built environment—Hedonic pricing model and case studies in Hong Kong," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1597-1608, November.

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    More about this item

    Keywords

    Spatial hedonic models; Cultural heritage; Geographically weighted regression; C21; P25;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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