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Hedonic Price for Amenities in Rural and Urban Residential Condominiums in Costa Rica

Author

Listed:
  • Paniagua-Molina Javier

    (University of Costa Rica)

  • Solórzano-Thompson Johanna

    (University of Costa Rica)

  • González-Blanco Carlos

    (Bch. Agricultural Economics and Agribusiness, University of Costa Rica)

  • Barboza-Navarro David

    (Bch. Agricultural Economics and Agribusiness, University of Costa Rica)

Abstract

As the number of homes located in condominiums increases, investigations should be promoted to determine the implied price of additional amenities over the total price of the property. This study evaluated the impact of multi-attribute and construction variables on the value of condominiums in Costa Rica, using a hedonic pricing model of the amenities that influence the total price. Information from condominiums located in all provinces of the country was used to determine the importance of the variables studied. Through multiple regression analysis, it was determined that nine amenities explain the behavior of the total price. This study shows that the project’s internal and external variables have a significant effect on sales prices and consumers’ purchasing decisions. The most significant variables were income, construction area, access to a pool and gym, and the type of condominium.

Suggested Citation

  • Paniagua-Molina Javier & Solórzano-Thompson Johanna & González-Blanco Carlos & Barboza-Navarro David, 2021. "Hedonic Price for Amenities in Rural and Urban Residential Condominiums in Costa Rica," Real Estate Management and Valuation, Sciendo, vol. 29(3), pages 52-64, September.
    • Handle: RePEc:vrs:remava:v:29:y:2021:i:3:p:52-64:n:7
    DOI: 10.2478/remav-2021-0021
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    References listed on IDEAS

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    More about this item

    Keywords

    externalities; valuation models; real estate valuation; property market; amenities;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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