The Impact of Subway Station Proximity on Apartment Prices in Shiraz

Abstract

AbstractProximity to public transportation, such as subway stations is often considered as one of the main factors affecting urban land value and housing prices. However, the magnitude and direction of this impact may vary depending on the context and characteristics of each city. This paper aims to investigate the effect of subway station proximity on apartment prices in Shiraz, a major city in Iran with a population of over 1.8 million people. Using a hedonic price model and regression technique, we analyzed a dataset of 128 apartment transactions, controlling for apartment size, location, age, and other characteristics. The results differ from previous studies which suggested being closer to the transit station affects the property price due to accessibility. The findings suggest that distance to subway stations has an insignificant effect on apartment prices in Shiraz, with property size, location, and age being key determinants of apartment prices. The possible reasons for this result were discussed and recommendations were made for the development of further studies.