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Pricing in the office rental market in Moscow: hedonic analysis

Author

Listed:
  • Ignatenko, Anna

    () (California university in Davis)

  • Mikhailova, Tatiana

    () (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

The article analyzes the pricing of the rental market of office premises in Moscow. Hedonic price model of leasing office space under construction and is estimated by the least squares method. The evaluation model is calculated hedonic price index of the dollar rent offices for the period from 2001 to 2010. The main factors determining a 70 percent variation in the prices of rent offices, are the class of the building and the characteristics of the location and transport accessibility. A number of other characteristics and conditions of the office rental contract also has cost a small but statistically significant effect on the price of the lease. The article emphasizes the importance of using the hedonic index, which takes into account changes in the composition and quality of the objects on the market, instead of simple indicators of the average price for the analysis of long-term trends in real estate markets.

Suggested Citation

  • Ignatenko, Anna & Mikhailova, Tatiana, 2015. "Pricing in the office rental market in Moscow: hedonic analysis," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 156-177.
  • Handle: RePEc:rnp:ecopol:ep1545
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    hedonic model; the hedonic index; Moscow; Office real estate for rent;

    JEL classification:

    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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