Substitutability and Complementarity of Urban Amenities: External Effects of Built Heritage in Berlin

This article analyzes the impact of designated landmarks on condominium transaction prices in Berlin, Germany. We test for price differentials between listed and nonlisted properties and study their impact on surrounding property prices. The proximity to built heritage is captured by the distance to listed houses and heritage potentiality indicators. Impact is assessed by applying a hedonic model to microlevel data, and this process also addresses spatial dependency. While our findings suggest that designated landmarks do not sell at a premium or discount, landmarks are found to have positive external effects on surrounding property prices within a distance of approximately 600 m.

[1]  Ståle Navrud,et al.  Valuing Cultural Heritage , 2002 .

[2]  M. Lahr,et al.  The contributions of historic preservation to housing and economic development , 1998 .

[3]  Luc Anselin,et al.  Spatial Externalities, Spatial Multipliers, And Spatial Econometrics , 2003 .

[4]  S. Rosen.  Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition , 1974, Journal of Political Economy.

[5]  J. Muellbauer,et al.  Household Production Theory, Quality, and the "Hedonic Technique." , 1974 .

[6]  S. Creigh-Tyte,et al.  The built heritage in England: The history and development of government policy , 1998 .

[7]  Gabriel M. Ahlfeldt,et al.  Impact of sports arenas on land values: evidence from Berlin , 2010 .

[8]  K. Small,et al.  URBAN SPATIAL STRUCTURE. , 1997 .

[9]  Peter V. Schaeffer,et al.  The Impact of Historic District Designation on Property Values: An Empirical Study , 1991 .

[10]  D. E. Clark,et al.  THE SOCIAL BENEFITS OF URBAN CULTURAL AMENITIES , 1988 .

[11]  D. Noonan.  Finding an Impact of Preservation Policies: Price Effects of Historic Landmarks on Attached Homes in Chicago, 1990-1999 , 2007 .

[12]  R. Florida.  Bohemia and economic geography , 2002 .

[13]  Gabriel M. Ahlfeldt,et al.  Arenas, Arena Architecture and the Impact on Location Desirability: The Case of `Olympic Arenas' in Prenzlauer Berg, Berlin , 2009 .

[14]  M. Lahr,et al.  Gracing the Land of Elvis and Beale Street: Historic Designation and Property Values in Memphis , 2005 .

[15]  C. D. Harris.  The, Market as a Factor in the Localization of Industry in the United States , 1954 .

[17]  R. Halvorsen,et al.  The Interpretation of Dummy Variables in Semilogarithmic Equations , 1980 .

[18]  S. Mehdian,et al.  The adverse impacts of local historic designation: The case of small apartment buildings in Philadelphia , 1994 .

[19]  R. Florida.  The Rise of the Creative Class : And How It's Transforming Work, Leisure, Community and Everyday Life , 2003 .

[20]  N. E. Coulson,et al.  Historic Preservation and Neighbourhood Change , 2004 .

[21]  Carolyn A. Dehring,et al.  The Impact of Stadium Announcements on Residential Property Values: Evidence from a Natural Experiment in Dallas-Fort Worth , 2007 .

[22]  Joel Kotkin,et al.  The New Geography: How the Digital Revolution Is Reshaping the American Landscape , 2000 .

[23]  P. K. Asabere,et al.  Architecture, historic zoning, and the value of homes , 1989 .

[24]  Luc Anselin,et al.  Small Sample Properties of Tests for Spatial Dependence in Regression Models: Some Further Results , 1995 .

[25]  L. Anselin.  Spatial Econometrics: Methods and Models , 1988 .

[26]  If Alonso Was Right: Accessibility as Determinant for Attractiveness of Urban Location , 2007 .

[27]  R. Shipley.  Heritage Designation and Property Values: is there an effect? , 2000 .

[28]  Anil K. Bera,et al.  Simple diagnostic tests for spatial dependence , 1996 .

[29]  D. Listokin,et al.  Historic Preservation and Residential Property Values: An Analysis of Texas Cities , 2001 .

[30]  Boris Kovalerchuk.  Visual correlation methods and models , 2004 .

[31]  Elizabeth Currid.  The economics of a good party: Social mechanics and the legitimization of art/culture , 2007 .

[32]  N. E. Coulson,et al.  The Internal and External Impact of Historical Designation on Property Values , 2002 .

[33]  Michael H. Schill,et al.  Building Homes, Reviving Neighborhoods: Spillovers from Subsidized Construction of Owner-Occupied Housing in New York City , 2001 .

[34]  D. E. Clark,et al.  Historical Preservation Districts and Home Sale Prices: Evidence from the Sacramento Housing Market , 1997 .

[35]  D. Keeble,et al.  Regional accessibility and economic potential in the European community , 1982 .

[36]  Vinita V. Deodhar,et al.  Does the housing market value heritage? Some empirical evidence , 2004 .

[37]  Ståle Navrud,et al.  Valuing cultural heritage: applying environmental valuation techniques to historic buildings, monuments and artifacts. , 2002 .

[38]  E. Talen.  The social goals of new urbanism , 2002 .

[39]  N. Crafts.  Market potential in British regions, 1871–1931 , 2005 .

[40]  F. Benhamou.  Who Owns Cultural Goods? The Case of Built Heritage , 2003 .

[41]  S. Machin,et al.  Valuing rail access using transport innovations , 2004 .

[42]  Yves Zenou,et al.  Why is central Paris rich and downtown Detroit poor?: An amenity-based theory , 1999 .