Modelling Real-Estate Values Around Railway Stations: Insights from an Italian Case

Abstract

This study investigates the Wider Economic Impacts (WEIs) of railway infrastructure in Italy by analysing how station characteristics and surrounding urban contexts are capitalized into residential property values. A nationwide cross-sectional dataset covering 985 railway stations is used to estimate a Hedonic Price Model (HPM) combining observed variables and latent constructs derived from Confirmatory Factor Analysis (CFA). Results show that railway centrality, long-distance service provision, and multimodal integration are positively associated with housing prices. In particular, shared mobility services generate significant value uplift effects, especially around Local and Local Plus stations. Conversely, car-oriented accessibility is negatively associated with residential values, reflecting the capitalization of traffic-related externalities. Socioeconomic and tourism-related characteristics further contribute to heterogeneous capitalization patterns across the national territory. The findings provide systemic empirical evidence to support investment prioritization, multimodal integration, and value uplift of station areas within the Italian railway network.