Reflecting the Sustainability Dimensions on the Residential Real Estate Prices

Marilena Mironiuc, Elena Ionașcu, Maria Huian and Alina Țaran
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Marilena Mironiuc: Accounting, Business Information Systems and Statistics Department, Faculty of Economics and Business Administration, “Alexandru Ioan Cuza” University of Iași, 700505 Iași, Romania
Elena Ionașcu: Department of Financial and Economic Analysis and Valuation, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, 010374 Bucharest, Romania
Alina Țaran: Department of International Trade and Business, Faculty of Business Administration, Haliç University, Istanbul 34445, Turkey
Authors registered in the RePEc Author Service: Elena Ionascu

Sustainability, 2021, vol. 13, issue 5, 1-28

Abstract: The paper analyzes the reaction of residential property prices to sustainability attributes and the extent to which they capitalize the effects of sustainability on real estate markets in EU-28 countries in the period 2000–2018. Given that the sustainable real estate market is mainly driven by demand, the sustainability attributes included in the study reflect both buyers’ expectations and their investment potential in sustainable residential properties, and developers’ efforts to become more “sustainable” through responsible property investment. In order to correspond to the current meaning of sustainable development, the variables capture the four dimensions that give content to the concept of the quadruple bottom line: economic, social, environmental and institutional. Using panel data and the two-stage least squares (2SLS) method, the research reveals a pronounced sensitivity of residential property prices to all sustainability dimensions in countries considered leaders in implementing the Sustainable Development Goals (SDGs), characterized by a strong institutional environment, and efficient and transparent real estate markets. In countries less committed to SGD implementation, weak governance and higher corruption negatively affect the transparency of real estate markets, and the dynamics of the price of residential transactions are determined only by the economic and social dimensions of sustainability.

Keywords: housing prices; sustainable development; Sustainable Development Goals; triple bottom line; quadruple bottom line; responsible property investment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:5:p:2963-:d:513330

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