Green Paradise or Concrete Castles: green infrastructure and buyers' perception

Agnieszka Zalejska-Jonsson and Sara Wilkinson

ERES from European Real Estate Society (ERES)

Abstract: Urbanization has significantly altered land use, reducing natural habitats and exacerbating environmental issues such as increased temperatures, altered water cycles, and poor air quality. The study investigates whether and how buyers perceive greenery in housing developments, the impact of green infrastructure on consumer interest, and the potential financial benefits of investing in sustainable residential designs. The study builds upon research in consumer behavior, urban planning, and real estate economics to explore property buyers’ preferences. The study employed an experimental design embedded within a survey to test the effect of green infrastructure on buyers’ interest. Five courtyard designs with varying levels of greenery were developed in collaboration with landscape architects. These were visualized using 3D modeling techniques and virtual reality tools, allowing participants to explore different courtyard layouts. Respondents were randomly assigned one of the five courtyard scenarios and asked to evaluate its attractiveness and their interest in purchasing an apartment in the development. Data was collected from 922 participants in Sweden and 614 in Australia using structured online surveys. The analysis utilized structural equation modeling (SEM) to assess relationships between courtyard greenery, attractiveness, and purchasing interest. The study concludes that green infrastructure plays a significant role in shaping buyers' perceptions of residential developments. Findings indicate that greener courtyards enhance property attractiveness, social engagement, and environmental benefits, leading to increased willingness to pay. Additionally, study reflects how cultural and environmental contexts shape buyers’ perceptions of green spaces, compering results obtained in Sweden and Australia. The study’s experimental approach provides a novel methodology for evaluating the economic and psychological effects of greenery in residential developments

Keywords: buyers perception; Green Infrastructure; housing; sustainable cities (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025-01-01
New Economics Papers: this item is included in nep-dcm, nep-env, nep-exp and nep-ure
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