Spaces & Flows: Ninth International Conference on Urban and ExtraUrban Studies

Abstract

Some researchers report positive effects on property values while others are negative or insignificant. The current paper argues that the impact of rail transit on property values depends on contextual factors which can influence on magnitude and direction of the impact and cause variation in the findings. Tehran’s Metro Rail System is chosen because the neighbourhoods served by the metro to the north-side and south-side of the city are dramatically different in terms of economic, social, and physical circumstances. A comparative analysis of six Tehran’s metro stations is conducted between the high-income neighbourhoods which are located primarily on the city’s north-side and lower-income neighbourhoods on the south-side to determine the effects proximity to metro station on residential property values. The paper uses mixed-method sequential explanatory design based on a before-and-after estimation strategy, which includes trend analysis, difference-in-differences model, and qualitative impact assessment methods. The results yield that there are large increases in premiums for residential properties near the lower-income neighbourhoods, the south side parts of the Tehran Metro Rail System, while a negative treatment effect for residential properties lie close to the northern stations in the high-income neighbourhoods. The qualitative survey also suggests that the impact of metro station is affected by a number of contextual factors, including the need for public transportation, land-use planning and management, socio-cultural effect, and possible nuisance effects.