Analysis of Current Empirical Studies on Transport Value-Added Effect and Proximate Housing Price Capture

Abstract

Transport infrastructure is paraphernalia that helps in curtailing urban sprawl in municipal cities and it also lessens traffic overcrowding and air effluence. It equally promotes high-density development in addition to more affordable accommodation all over developed countries. This article reviews and evaluates the range of study outcomes established by the emerging frontier of knowledge delving on the capitalization effects of transport-oriented development on real estate prices. The effect of transport system services on accommodation price has been investigated from numerous viewpoints employing several rigorous statistical tools. Based on the findings of the existing literature, there are two broad kinds of impacts that closeness to a transport system can have on the value of housing accommodations: accessibility benefits (experienced in close proximity to transit services) might increase housing values, while nuisance qualities (experienced in transit-oriented facilities) could equally have a negative outcome on apartment prices. Owing to the contradictory nature of these simultaneous effects, findings from numerous empirical investigations have been opposing or open to debate. The reviewed empirical studies provide policymakers with new-fangled empirical evidence as well as analytical tools to reexamine value capture as a financing option and to transform, modify, improve, reorganize and restructure investment strategies or opportunities for rail transit services. Property development and construction companies may perhaps be able to make a decision on where to erect real estate for profit maximization and sales. Transportation planning and urban development authorities, conversely, might be able to obtain and distribute tax income based on the ease of access benefit and nuisance effects.