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A spatial hedonic approach for modeling the relationship between quality of urban life and housing prices, case study: Alexandria city, Egypt

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Abstract

Urban areas in develo** countries face many challenges to improve Quality of Urban Life (QUL). This highlights the need for providing a systematic approach for assessing QUL on regular basis, which can assist in identifying main areas for improvement and support planning and management effort. For this purpose, this paper intends to identify key determinates of QUL and estimate their contribution to housing prices by employing a spatial hedonic pricing approach in Alexandria city. To attain this objective, a three-step methodology was applied involving identification of QUL indicators, determining the sampling procedure and collecting data, and spatial econometrics analysis through Geographically Weighted Regression (GWR). GWR showed that the considered QUL attributes have a noticeable explanatory power exceeding 0.80. These attributes include housing physical conditions, environmental quality and aesthetic attributes, and socio-demographic attributes. Accordingly, city planners and managers should target these attributes in order to improve QUL in the city.

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Notes

  1. https://www.olx.com.eg/.

  2. https://www.propertyfinder.eg/.

  3. https://aqarmap.com.eg/.

  4. https://bit.ly/3mPhEbw.

  5. The exchange rate for Egyptian Pound (EGP) at the time of conducting this study is US$ 1 = EGP 15.6.

  6. These attributes included distance to town center, distance to hospitals, distance to schools, distance to markets, crowding rate, household size and illiteracy rate.

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Correspondence to Rofida G. Abdelwahab.

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Abdrabo, M.A., Hassaan, M.A. & Abdelwahab, R.G. A spatial hedonic approach for modeling the relationship between quality of urban life and housing prices, case study: Alexandria city, Egypt. Lett Spat Resour Sci 15, 59–77 (2022). https://doi.org/10.1007/s12076-021-00298-x

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