Hedonic analysis of price in the istanbul housing market

Abstract

The purpose of this paper is to explore the factors that affect housing prices in Istanbul. A hedonic price model is employed in order to examine housing price determinants with respect to property characteristics, socio‐economic characteristics, neighbourhood quality characteristics, and locational factors. The results reveal that housing prices are affected by these factors: living area size, being in a low storey building, being in a secured site (with swimming pool and garage), and age of the building. In addition to these determinants, the length of time the inhabitants have lived in Istanbul, the average income of the household, neighbour satisfaction and earthquake risk of the area have effects on the residential prices in Istanbul. Further research is suggested by constructing a second model that includes neighbourhood dummy variables as a proxy for submarkets, and a multi‐level modelling framework will be employed in order to analyse the urban housing submarket system.

SANTRUKA

Šiame darbe siekiama išnagrineti veiksnius, kurie daro itaka būsto kainoms Stambule. Pasitelkus hedonini kainu modeli, tyrinejami būsto kainas lemiantys veiksniai, atsižvelgiant i nekilnojamojo turto charakteristikas, socialinius‐ekonominius veiksnius, apylinkiu kokybes bruožus ir vietos veiksnius. Rezultatai rodo, kad būsto kainoms itaka daro tokie veiksniai: gyvenamosios teritorijos dydis, pastato aukštingumas, buvimas sklype ir pastato amžius. Be šiu veiksniu, būsto kainas Stambule veikia ir laikas gyventas mieste, vidutines namu ūkio pajamos, patinkantys kaimynai bei žemes drebejimu rizika toje teritorijoje. Siūloma atlikti tolesnius tyrimus, suformuojant antra fiktyviuosius apylinkiu kintamuosius apimanti modeli, kuris bus taikomas kaip subrinku pakaitalas, o naudojant daugialype modeliavimo struktūra bus siekiama išanalizuoti miesto būsto subrinkos sistema.

Keywords:

• Residential property market
• Housing prices
• Hedonic price models
• Istanbul