Distinctively different: A new approach to valuing architectural amenities

Konferenzbeitrag

We propose a method to estimate the capitalized value of the architectural design quality of a neighbourhood. Our economic design premium is identified by spatially differentiating property prices and design quality within neighbourhoods and comparing the differences across neighbourhoods. We apply our method to 47 conservation area neighbourhoods in England in which we analyse around 7900 property transactions and interview more than 500 residents. We find a capitalization effect of about 25.4% (£38.7k) associated with a one-step increase on a five-step scale ranging from not at all-distinctive to very distinctive. Our results suggest that this effect is at least partially driven by an architectural externality.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: 55th Congress of the European Regional Science Association: "World Renaissance: Changing roles for people and places", 25-28 August 2015, Lisbon, Portugal

Classification and Topics

• Classification: Wirtschaft ; Regional Government Analysis: Land Use and Other Regulations ; Organizational Behavior; Transaction Costs; Property Rights
• Subject: Architecture ; beauty ; boundary discontinuity ; conservation areas ; design ; Englan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ahlfeldt, Gabriel ; Holman, Nancy
• Event: Veröffentlichung
• (who): European Regional Science Association (ERSA)
• (where): Louvain-la-Neuve
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/124569
• Last update: 10.03.2025, 11:43 AM CET