The effect of land lease on house prices
Pieter Gautier () and
Aico van Vuuren ()
No 686, Working Papers in Economics from University of Gothenburg, Department of Economics
In Amsterdam, houses located on private land and houses with various land-lease contracts coexist. In this paper, we investigate the impact of future land-lease payments on the house price. We look at the impact on house prices of: (i) the number of years that the land lease has been paid in advance and (ii) the amount that must be paid up front. Houses on privately owned land are on average 10% more expensive. Houses with a land-lease contract that has been paid in advance are 0.41% more expensive for each year that no land lease has to be paid. We find a large and negative impact of the land-lease rent that needs to be paid on the house price.
Keywords: House prices; Land lease (search for similar items in EconPapers)
JEL-codes: R30 R38 (search for similar items in EconPapers)
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