Digital library of construction informatics and information technology in civil engineering and construction
Digital library
Paper: eres2016_303
| Paper title: | Efficient Land Use with Congestion: Determining Land Values from Residential Rents |
| Authors: | Fuess, Roland; Jan Koller |
| Summary: | In this paper, we propose a model of the residential rental market that meets thefunctional requirements of the underlying land market. A crucial aspect in themodel is the incorporation of land quality represented by the floor area ratio (FAR),one of the most important land use regulation measures. Embedded in a hedonic setting, the model is tested empirically using apartment rent data from the canton of Zurich in Switzerland. From our empirical results we derive two main reasons for a monocentric structure of land prices. First, the central location's attractiveness makes land prices more expensive. Second, on a regulatory basis, the FAR worksas a multiplier for land prices. Because the FAR is high in central areas, land prices are inflated accordingly. As a by-product of the model test, we find a capitalization rate for land of 8.1%. |
| Type: | paper session |
| Year of publication: | 2016 |
| Series: | ERES:conference |
| Download paper: | |
| Citation: | Fuess, Roland; Jan Koller (2016). Efficient Land Use with Congestion: Determining Land Values from Residential Rents. 23rd Annual European Real Estate Society Conference in Regensburg, Germany, http://itc.scix.net/paper/eres2016_303 |
hosted by University of Ljubljana
includes:
W78
includes:
W78
inspired by SciX, ported by Robert Klinc [2019]