The impact of Green areas on dwelling prices: The case of Poznań city

Abstract

Objective: The objective of this paper is to estimate the impact of urban green areas on dwelling prices in Poznań. Research Design & Methods: In order to identify the influence of the green spaces on dwelling prices, the hedonic method was used. The transactions and offers were matched taking into account the location (name of the street), area of a dwelling, location in the building. As a result a new dataset was created with fewer observations (not in all cases the process of matching succeeded) however with better description of transactions. The final data set contained 1438 geo-coded dwelling transactions for the years 2013 to 2014 in Poznań. Findings: The application of the log-linear model allows to identify the percentage difference in the price of the same dwelling located with different distances to green areas. In case of this research, the results indicate that increase the distance from green area by one kilometre lowered the price of a dwelling by 3% in Poznań in years 2013-2015. Implications & Recommendations: It is necessary to conduct research on impact of green areas on other types of properties. Different types of urban green areas may affect property prices in different ways. Contribution & Value Added: The originality of this work lies in studying some aspects of influence of green areas on dwelling prices in Poland.