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Abstract
The present study investigates the effect of urban rail on the market prices of residential properties, considering train proximity as both a source of improved access and a local disamenity. For the analysis, 926 housing sales in the city of Haifa, Israel were used. The analysis indicates a relatively narrow buffer zone near train tracks (about 50-100-meters wide) that "absorbs" about 13% of price decline. Beyond this zone, apartment prices rise to their "peaks" at approximately 100-150 meters from the train tracks, and then decline by an average of 0.7% for each additional 100-meter increase in the train line distance.
Urban rail is often the main form of access to jobs and places of entertainment in large cities; in many cases, the train system spurs the establishment of new businesses along the rail lines, and migrants are encouraged to settle down near new commercial and labor areas created nearby (Cervero, 1984).
In real estate studies, the effect of train access on property prices is perceived as twofold. First, according to several empirical studies, property prices are likely to be higher near train stations than elsewhere, due to improved access to business areas, shopping, schools, and entertainment venues (Landis, Cervero, Guhathukurta, Loutzenheiser, and Zhang, 1995; Lewis- Workman and Brod, 1997; and Debrezion, 2006). Second, as indicated by several other studies, there may be a price-dumping effect of train proximity, due to noise pollution and unattractive views (Weinberger, 2001; and Simons and Jaouhari, 2004).
From the real estate perspective, the entire train system may thus be split into two principal components: 1) train stations, which provide access to urban activity foci and connect to other modes of urban transportation, and 2) areas surrounding rail lines (often saturated with dilapidated industrial estates and warehouses), proximity to which is a disamenity for adjacent residential development.
Most studies investigating the influence of urban rail systems on housing property market have been focused mainly on proximity to train stations (see Appendix 1) and generally overlooked the fact that train stations and rail lines may have different effects on residential property values. Only a handful of empirical studies attempted to evaluate separately the effects of train proximity on housing prices in areas adjacent to train stations and to rail lines...