An attractive environment is likely to influence house prices. Houses in attractive settings will have an added value over similar, less favourably located houses. This effect is intuitively felt, but does it always occur? Which environmental factors make a location an attractive place to live in? The present study explored the effect of different environmental factors on house prices. The research method was the hedonic pricing method, which uses statistical analysis to estimate that part of a price due to a particular attribute. Nearly 3000 house transactions, in eight towns or regions in the Netherlands, were studied to estimate the effect of environmental attributes on transaction prices. Some of the most salient results were as follows. We found the largest increases in house prices due to environmental factors (up to 28%) for houses with a garden facing water, which isconnected to a sizeable lake. We were also able to demonstrate that a pleasant view can lead to a considerable increase in house price, particularly if the house overlooks water (8±10%) or open space (6±12%). In addition, the analysis revealed that house price varies by landscape type. Attractive landscape types were shown to attract a premium of 5±12% over less attractive environmental settings. |
