Impact of metro station proximity on apartment value in Prague
|Author:||Bc. Jan Láznička|
|Year:||2016 - summer|
|Leaders:|| Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This Bachelor’s thesis analyzes the relationship between the apartment prices
and proximity of the metro stations in Prague. Using the apartment offer prices
and apartment characteristics from the real estate agencies, empirical analysis
is conducted to examine the metro closeness effect in the case of whole Prague
and also different parts of the city. Moreover, the real transaction data are used
to study the possible difference between the impacts on the real transaction
prices and the offer prices. The results show a statistically significant positive
impact of metro closeness on apartment value in the case of a Prague as a whole
with 14 967 CZK apartment price decrease when moving additional 100 meters
away from the station. In another approach we compare the price differences of
apartments located in 250 meters wide zones from their closest metro station.
The results show a value premium of 563 851 CZK and 500 691 CZK for the
apartments located in the 250-500m and 500-750m zones respectively compared
to the ones located more than 1 kilometer away. In the case of different parts of
Prague, many different results are obtained. However, majority of them show
a positive price impact of metro closeness in Prague.