Tourist Cities and Residential Real Estate: Towards a Spatial-Temporal Valuation Framework for Market Values
Eugenio Muccio,
Hilde Remoy and
Maria Cerreta
ERES from European Real Estate Society (ERES)
Abstract:
In the active landscape of contemporary urban development, the intricate interplay between tourism dynamics and the real estate market has emerged as a critical area of concern. Tourist cities, characterized by their diverse urban functions and services, face complex phenomena that reverberate through the real estate markets. This research addresses the need to make explicit and quantify the impacts of tourism on residential real estate values within the context of these multifaceted urban environments.The purpose of this work is further to spatially evaluate the urban impacts on housing prices resulting from tourism dynamics, taking into account the shift of residential real estate from the ordinary market to the short-term market. By tracking changes over time, this research aims to unveil the spatial patterns and trends in real estate market dynamics in response to touristification processes, ultimately assessing the correlation between tourism dynamics and housing prices change.This work is part of a research that aims to develop a valuation framework that enables decision-makers to understand and visualize the complexities of tourism and real estate issues comprehensively. This integrated approach acknowledges the need for decision-makers to navigate the intricate relationship between tourism and real estate values relying on robust multi-scalar and multi-dimensional monitoring tools, offering a practical solution for informed policy formulation and urban planning strategies.The research methodology considers a data-driven approach in a GIS environment, within the perspective of developing an innovative Spatial Decision Support System (SDSS) capable of informing decision-makers in a structured way by means of a spatial-temporal analysis of market values to be overlaid with different variables (housing market, short-term rentals, activities development and cultural processes).These issues are addressed through a case study of Rotterdam, starting from a mapping conducted from fine-grained spatial data on housing transactions over the past dozen years.The resulting maps, obtained through specific data aggregation procedures and classification methods, show the overlay of the considered variables, bringing out spatial patterns, new tourism hotspots and areas of (non-)homogeneous growth with respect to short- and long-term market values, facilitating an effective way of reading the city and its complex evolutionary dynamics.This work provides an advancement in implementing a variable set for evaluating real estate evolutionary dynamics of tourist cities within a spatial-temporal framework, acknowledging such a tool as a key instrument for fostering sustainable urban development models, providing actionable insights for informed decision-making in the complex intersection of tourism and real estate.
Keywords: Housing Prices; Real Estate Market Values; Short-Term Rentals; Tourist Cities (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-tur and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2024-170
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