# RECORD 1cfe837df0de5fbf9301d42a68087ac61222c173
# TITLE: The real estate market and public transportation systems in developing countries: the case of Medellín, Colombia
# YEAR: 2022.0  VENUE: Urbe : Revista Brasileira de Gestão Urbana  DOI: 10.1590/2175-3369.014.e20210447
# AUTHORS: H. D. Villada-Medina
# PAGES: 24  CANDIDATE TABLE PAGES (1-based): []
# ABSTRACT: Abstract The objective of this study was to measure the effect of the distance between homes and the stations of the integrated public transportation system in Medellín on home prices. The hedonic models used here were calculated using ordinary least squares (OLS) and two spatial econometric models: the spatial autoregressive (SAR) model and the spatial error model (SEM). The results obtained indicate that the stations of this transportation system have an impact on home prices depending on the income level of the district where they are located. On the one hand, the price of a home in a low- or middle-income district can increase (17.1% or 15%) if it is “near” a station (1.5-2.0 km and 1.0-1.5 km, respectively), but it is not affected if the housing unit is “too close” (up to 1.0 km). On the other hand, if the housing unit is located in a high-income district, the nearer it is to a station, the lower its price (-15% between 0 and 1.0 km, and -12% between 0.5 and 1.0 km). These results are relevant for all the agents involved in real estate and public policy makers interested in executing transportation infrastructure projects in cities in developing countries.


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Artigo Científico 
 
 
doi: 10.1590/2175-3369.014.e20210447 
 
HDV-M es MSc in Finance and PhD (c) in Economics and Business Studies, e-mail: hernanvillada @itm.edu.co 
 
urbe. Revista Brasileira de Gestão Urbana, 2022, 14, e20210447 
 1/23 
 
The real estate market and public 
transportation systems in developing 
countries: the case of Medellín, Colombia 
Mercado imobiliário e sistemas de transporte público em países em 
desenvolvimento: el caso de Medellín, Colômbia 
ISSN 2175-3369 
Licenciado sob uma Licença Creative Commons 
  
Hernán Darío Villada-Medina[a]
  
[a] Instituto Tecnológico Metropolitano, Facultad de Ciencias Económicas y Administrativas, Medellín, Colombia 
 
 
Cómo citar: Villada-Medina, H. D. (2022). The real estate market and public transportation systems in developing 
countries: the case of Medellín, Colombia. urbe. Revista Brasileira de Gestão Urbana, v. 14, e20210447. 
https://doi.org/10.1590/2175-3369.014.e20210447 
Abstract  
The objective of this study was to measure the effect of the distance between homes and the stations of the 
integrated public transportation system in Medellín on home prices. The hedonic models used here were 
calculated using ordinary least squares (OLS) and two spatial econometric models: the spatial autoregressive 
(SAR) model and the spatial error model (SEM). The results obtained indicate that the stations of this 
transportation system have an impact on home prices depending on the income level of the district where they 
are located. On the one hand, the price of a home in a low- or middle-income district can increase (17.1% or 
15%) if it is “near” a station (1.5–2.0 km and 1.0–1.5 km, respectively), but it is not affected if the housing unit 
is “too close” (up to 1.0 km). On the other hand, if the housing unit is located in a high-income district, the nearer 
it is to a station, the lower its price (-15% between 0 and 1.0 km, and -12% between 0.5 and 1.0 km). These 
results are relevant for all the agents involved in real estate and public policy makers interested in executing 
transportation infrastructure projects in cities in developing countries. 
 
Keywords: mass appraisal, spatial econometrics, public transportation, developing countries.