XXVI Edition

14-15-16 December 2017"

Brownfield areas and housing value: Evidence from Milan

Gibilaro Lucia, University of Bergamo
Mattarocci Gianluca, University of Rome Tor Vergata

The existence of brownfield areas inside a city has negative effects on the real estate market due to the decrease of the demand for real estate assets nearby for both the prices and rents. The impact could be different on the basis of the different type of real estate investment considered and normally the impact is expected to be higher for residential assets. The paper evaluates the economic effect of abandoned real estate in the city of Milan and shows that the existence of brownfield areas nearby a real estate asset (distance lower than 2km) affects negatively its price and rent value. The type of asset considered affects the magnitude of the of the rent/price losses and those houses and shops are those that are more sensitive to brownfield areas.

Area: Other

Keywords: Housing, Brownfield investment, real estate

Paper file

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