Analysing property values, (dis-)amenities, externalities and the value of location for companies
What determines the value of a property? Real estate agents know the answer: Location-location-LOCATION!
We can use information on the characteristics of sold properties in revealed preference analyses to value amenities and disamenities, externalities and, for instance, public goods.
A huge empirical literature using hedonic pricing techniques uses this insight for the purpose of valuation of individual aspects of the location, such as accessibility of jobs and facilities, the presence of open space, noise disturbances, the value of having a private parking place instead of a public parking permit.
Some exemplary valuation studies that we have carried out focus on:
- Attractivity of urban and cultural amenities to knowledge workers
- Presence of open space
- Transport noise nuisance
- (E)valuation of parking space
- Determining land rents from house transactions and using land rents in explanatory valuation studies
Further, one of the P’s in the marketing mix is the P from Place. This P has been understudied for a long time, but since a few years researchers and companies increasingly are interested in the value of place. Place concerns the location of a company (supply), the location of customers (demand, B2B & B2C), and the interaction between supply and demand in space. The SPINlab co-operates with the Department of Marketing to further explore the spatial aspects of marketing-related topics. The Geomarketing-course and the supervision of master thesis research in this field are some of the most prominent mutual activities.