The impact of litigation over infrastructure settings on residential property values in Paris's suburban zones
Résumé
The presence of nearby public facilities contributes to real estate values; that is why the market may expect public projects to affect house prices. But undesirable and semi-desirable facility location choices can be contested by close inhabitants, because they are source of negative externalities or negative expectations. In Paris' suburban zones, the opposition to these infrastructures is frequent, and the announcement of an official project does not automatically mean its implementation. Through three case studies, we explore the way the expectation mechanism is affected by legal conflicts driven by close inhabitants. We suppose that expectations depend on the to-be-realized-chance of the project. As conflicts amplify or reduce the certainty of the new facility's arrival, market perceptions of the infrastructure vary. The variation is captured by our hedonic model.
Domaines
Economies et finances
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