ASSESSING LAND VALUES AND PROXIMITY USING HEDONIC MODEL-A CASE STUDY OF GREEN TOWN GUJRAT, PAKISTAN

Abstract

This paper evaluates the impact of proximity on land and property values in the urban area of Gujrat City, in Pakistan. Property and land values are a dynamic phenomenon spatially and economically. Generally, land is an element of property and property values are considered bearing multiple characteristics for the price evaluation and assessment, and there is no perfect method to estimate these values. The property attributes and neighborhood services have positive impact on land and property values due to their association with amenities for a settlement area. The greater the neighborhood amenities more the utilities, therefore higher the property values. However, amongst all these defined methods, the Hedonic Price Model is considered the best model that includes the locational, structural, neighborhood and community attributes, that are considered in this case study. The impact of these services is evaluated by
measurement of this potential. Moreover, Hedonic Pricing Model, the most suitable method used in research studies, is used the (Geographical Information System) GIS for spatial modeling of proximity and Multi Linear Regression as a statistical tool for measurement and checking the impact of each individual variable on total property value. The study area selection was taken due to the suitability of hedonic variables. The regression analysis results reflected that hedonic variables including the land and property with large structure, similar community characteristics, neighborhood attributes and accessibility to the roads and streets network due to the locational aspect, have positive impact on the values of the property. The regression model summery shows the potential of each hedonic variable of total price of the property and suitability of the model by values of R, R2 and adjusted R2, where the values of R is 0.92 and R2 is 0.85. The assessment result from hedonic regression of the study will provide tools for sustainable urban infrastructure and development. Furthermore, suggestions are made on the bases of these results. It is expected that the research on such burning issue may provide best land allocation plan to urban designers, urban managers and also provide spatial tool for sustainable urban development