# RECORD e685d1a724bac8026bfae0663fe85a5860953a4e # TITLE: The Impact of Subway Station Proximity on Apartment Prices in Shiraz # YEAR: 2024.0 VENUE: Transportation in Developing Economies DOI: 10.1007/s40890-024-00198-x # AUTHORS: Hamed Najafi Kashkooli; K. Hajipoor; M. Arasteh; Ali Soltani # PAGES: 9 CANDIDATE TABLE PAGES (1-based): [] # ABSTRACT: Proximity to public transportation, such as subway stations is often considered as one of the main factors affecting urban land value and housing prices. However, the magnitude and direction of this impact may vary depending on the context and characteristics of each city. This paper aims to investigate the effect of subway station proximity on apartment prices in Shiraz, a major city in Iran with a population of over 1.8 million people. Using a hedonic price model and regression technique, we analyzed a dataset of 128 apartment transactions, controlling for apartment size, location, age, and other characteristics. The results differ from previous studies which suggested being closer to the transit station affects the property price due to accessibility. The findings suggest that distance to subway stations has an insignificant effect on apartment prices in Shiraz, with property size, location, and age being key determinants of apartment prices. The possible reasons for this result were discussed and recommendations were made for the development of further studies. ===== PAGE 1 (score 12, numeric-paren 0, table-words 0, var-words 12) ===== Vol.:(0123456789) Transportation in Developing Economies (2024) 10:16 https://doi.org/10.1007/s40890-024-00198-x ORIGINAL ARTICLE The Impact of Subway Station Proximity on Apartment Prices in Shiraz Hamed Najafi Kashkooli1 · Khalil Hajipoor1 · Mojtaba Arasteh1 · Ali Soltani2  Received: 27 August 2023 / Accepted: 12 February 2024 / Published online: 3 April 2024 © The Author(s) 2024 Abstract Proximity to public transportation, such as subway stations is often considered as one of the main factors affecting urban land value and housing prices. However, the magnitude and direction of this impact may vary depending on the context and characteristics of each city. This paper aims to investigate the effect of subway station proximity on apartment prices in Shi- raz, a major city in Iran with a population of over 1.8 million people. Using a hedonic price model and regression technique, we analyzed a dataset of 128 apartment transactions, controlling for apartment size, location, age, and other characteristics. The results differ from previous studies which suggested being closer to the transit station affects the property price due to accessibility. The findings suggest that distance to subway stations has an insignificant effect on apartment prices in Shiraz, with property size, location, and age being key determinants of apartment prices. The possible reasons for this result were discussed and recommendations were made for the development of further studies. Keywords  Subway accessibility · Proximity premium · Value capture · Apartment price · Hedonic price model · Shiraz Introduction The availability of transportation infrastructure is consid- ered a crucial determinant of property value in urban areas. Proximity to public transportation, such as subway stations, can significantly affect residential property values [1, 2]. However, the magnitude and direction of this effect may vary depending on various factors, such as the characteristics of the subway system, housing market, and urban context. Investment in subway systems provides benefits beyond the public interest, including physical activity promotion [3], alleviation of traffic congestion [4], reduction of emissions [5], and expansion of consumer amenities [6]. Shiraz is the capital city of Fars Province in Iran, with a population of about 1.8 million people. In Shiraz, significant urbanization and population growth in recent years have led to an increased demand for housing. As a result, the housing market in Shiraz has become increasingly competitive, with prices varying greatly depending on location. One factor that has been suggested to impact apartment prices is proxim- ity to subway stations. However, the extent of the influence of subway station proximity on apartment prices in Shiraz remains unclear. Therefore, this study examines the impact of subway sta- tion proximity on apartment prices in Shiraz using a hedonic price model. Specifically, we analyzed data on apartment prices and characteristics, as well as subway station loca- tions and accessibility, to provide insight into the relation- ship between subway station proximity and apartment prices in Shiraz. Literature Review Since the 1970s, numerous studies have examined the impact of rail station proximity on property values using various methods and data. These studies found that the relationship between rail station proximity and property values can vary based on several factors, such as distance from downtown, * Ali Soltani ali.soltani54@gtmail.com; ali.soltani@flinders.edu.au.edu.au Hamed Najafi Kashkooli hmd.njf.76@gmail.com Khalil Hajipoor hajipoor@shirazu.ac.ir Mojtaba Arasteh mojtabaarasteh@yahoo.com 1 Department of Urban Planning, Shiraz University, Shiraz, Iran 2 FHMRI, Flinders University, Adelaide, SA 5042, Australia