Urban regeneration VS residential property characteristics: which is the most influential on property values?

Abstract

AbstractUrban regenerations have always been a tool towards the improvement of the urban environment through environmental integration and thereafter the quality of life of citizens. However, all regenerations do not have the same success and impact on the surrounding properties. In this paper, two major urban regenerations of Thessaloniki, the second largest city of Greece, are studied through the scope of their effect on property values in combination with the analysis of the effect of traditional property characteristics on values. This study was necessary to fill the gap of determining that sustainable urban planning and environmental integration are nowadays proven more important than property characteristics, when population gathering in urban areas is at its highest point. The current study applied geographically weighted regression, spatial autocorrelation and hot-spot analysis through the environment of ArcGIS to determine which are the factors that citizens seek in their residential area and if these factors are more important than their property characteristics. The findings of the study indicate that citizens always seek for additional urban green and urban quality even in areas where the urban environment is already at a very good level. The difference appears in the fact that in areas where urban green or open spaces are upsent, the weight leans on the characteristics of the wider area and its citizens (socio-economic characteristics, habits etc.) rather than on the property characteristics, when determining property values. On the other hand, citizens living in areas with urban green and open spaces, move a step forward and seek for larger and more friendly green or regenerated areas as a counterpoint for already increased property values. In general, the result of this research underlines that a targeted urban planning for each sub-area is one of the keys toward property values stabilization against economic variations and towards the improvement of the quality of citizens’ lives through environmental integration. Therefore, decision makers and urban designers should take into account all different needs of the citizens in each area setting the goal of maximum possible urban sustainability and resilience and the minimum environmental degradation.