The Impacts in Real Estate of Landscape Values: Evidence from Tuscany (Italy)

Abstract

Using spatial econometric techniques and local spatial statistics, this study explores the relationships between the real estate values in Tuscany with the individual perception of satisfaction by landscape types. The analysis includes the usual territorial variables such as proximity to urban centres and roads. The landscape values are measured through a sample of respondents who expressed their aesthetic-visual perceptions of different types of land use. Results from a multivariate local Geary highlight that house prices are not spatial independent and that between the variables included in the analysis there is mainly a positive correlation. Specifically, the findings demonstrate a significant spatial dependence in real estate prices. The aesthetic values influence the real estate price throughout more a spatial indirect effect rather than the direct effect. Practically, house prices in specific areas are more influenced by aspects such as proximity to essential services. The results seem to show to live close to highly aesthetic environments not in these environments. The results relating to the distance from the main roads, however, seem counterintuitive. This result probably depends on the evidence that these areas suffer from greater traffic jam or pollution or they are preferred for alternative uses such as for locating industrial plants or big shopping centres rather than residential use. Therefore, these effects decrease house prices.