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Residential Pricing in Ethiopia: do Urban Green Amenities Influence House Buyers’ Decision?

Abstract: 

Urban green amenities are vital infrastructures to realize sustainable urban development and healthy life in cites. However, direct economic value of green amenities is seldom measured in monetary terms. Moreover, studies on urban green amenities’ valuation in developing countries are scanty and are limited in Ethiopia. To fill the gap, this study aims to investigate impacts of urban green amenities on residential pricing using hedonic pricing method. The impact of green amenities in residential house pricing is analysed using the data collected from 391 residents of Addis Ababa. Results from the log-linear regression model indicated that buyers of residential house attach positive and significant value to urban green amenities. Specifically availability of green spaces increases the average price of house by 32%. Views for landscapes, nature areas and water-bodies increase average house price by 38%. However, result shows no statistical evidence for the impact of park availability on house price. Other house characteristics such as number of total rooms, bedrooms, and size of house have positive relationship with the average price buyers assign. Therefore, designing urban residential areas and real estate’s that incorporate green spaces and nature landscapes can yield significant benefits for the developers and help building resilient and green cities in Ethiopia.

Corporate Author: 
Ethiopian Economics Association (EEA)
Publisher: 
Ethiopian Economics Association (EEA)
ISBN/ISSN: 
978-99944-54-64-8
Primary Descriptors: 

Urban green amenities, residential pricing

Secondary Descriptor: 

environmental valuation, hedonic pricing model

Geographic Descriptors: 
Ethiopia
Cataloge Date: 
08/27/2018
Broad Subject heading: 
Pricing
Call Number: 
330.963 PRO 2018
Serial Key Title: 
Proceedings of the Fifteenth International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
I
Publication date: 
2018-06-01 00:00:00
Conference Place: 
EEA Multi-purpose Building Conference Hall, Addis Ababa
Place of publication: 
Addis Ababa
Type of material: 
Book
Current frequency: 
Annually
Thematic area: 
Microeconomics, Industry and Social Sector Related
Conference date: 
July 20 – 22, 2017