The effect of metro stations on housing prices, Istanbul case

Abstract

Metro lines are economic elements that impact the land and real estate values of the urban area, besides the time benefit they produce. According to the literature, metro lines increase housing prices in the service area. The aim of this study is to reveal metro stations' effect on housing prices, based on the examples of two different metro stations in Istanbul. In this context, within the framework of the metro investment, it is aimed to examine the effect of housing typology and urban transportation opportunities on housing prices as a hybrid model. Within the scope of the study, a field study was conducted to determine the effects of metro in two sample stations selected from Istanbul. Accordingly, it has been examined how the housing prices around the Metrokent and Kirazli stations of the M3-Kirazli-Basaksehir Olimpiyat Metro line, which was put into operation in 2013, are affected by the metro station. To make this assessment; hedonic price-based regression analysis was applied. This quantitative method is frequently used in determining the factors affecting house prices. A study was conducted on 349 residences whose sales values were examined from the related websites. The findings show that; housing prices in the Metrokent region are strongly affected by the metro station, while housing prices in the Kirazli region are limitedly affected. In this study, the way real estate prices are affected by the metro station is examined in terms of housing typology and is expected to be a reference for future studies with different criteria.