Effect of Distance to Train Station and Mobile Coverage on Land Value: A Case of Tax Valuation in Oreamuno, Costa Rica

Molina Javier Paniagua (), Gómez Sergio Ulate (), Thompson Johanna Solórzano () and Navarro David Barboza ()
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Molina Javier Paniagua: University of Costa Rica, San José, 11501, Costa Rica
Gómez Sergio Ulate: University of Costa Rica, San José, 11501, Costa Rica
Thompson Johanna Solórzano: University of Costa Rica, San José, 11501, Costa Rica
Navarro David Barboza: University of Costa Rica, San José, 11501, Costa Rica

Baltic Journal of Real Estate Economics and Construction Management, 2022, vol. 10, issue 1, 93-105

Abstract: In Costa Rica, a land tax valuation model provided by the Technical Standardization Body (ONT) of the Ministry of Finance is used. This model considers homogeneous areas that include properties with similar characteristics and review factors that have not been recently updated. The objective of this article is to determine the effect of the distance to the train station and mobile coverage on the value of land in Oreamuno, Costa Rica, as a proposal to be included in the mass valuation model of the ONT. A multiple regression econometric model was used to establish the functional relationship between the value of the property and its characteristics, through the Ordinary Least Squares (OLS) method, using 10 variables applied to 200 references initially. The results allow demonstrating that other variables such as “Distance to the train station” and “Mobile coverage” are representative for determining the value of properties, in addition to those commonly used by the ONT model. The research allows concluding that the land valuation models should be updated periodically and should include variables related to improvements in technology and access roads, since these increase the market value of properties and improve the social development of localities in study.

Keywords: Appraisal; land valuation; multiple regression; tax value (search for similar items in EconPapers)
JEL-codes: C50 Q15 R14 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:bjrecm:v:10:y:2022:i:1:p:93-105:n:4

DOI: 10.2478/bjreecm-2022-0006

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