1# RECORD e685d1a724bac8026bfae0663fe85a5860953a4e2# TITLE: The Impact of Subway Station Proximity on Apartment Prices in Shiraz3# YEAR: 2024.0 VENUE: Transportation in Developing Economies DOI: 10.1007/s40890-024-00198-x4# AUTHORS: Hamed Najafi Kashkooli; K. Hajipoor; M. Arasteh; Ali Soltani5# PAGES: 9 CANDIDATE TABLE PAGES (1-based): []6# 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.789===== PAGE 1 (score 12, numeric-paren 0, table-words 0, var-words 12) =====1011Vol.:(0123456789)12Transportation in Developing Economies (2024) 10:16 13https://doi.org/10.1007/s40890-024-00198-x14ORIGINAL ARTICLE15The Impact of Subway Station Proximity on Apartment Prices in Shiraz16Hamed Najafi Kashkooli1 · Khalil Hajipoor1 · Mojtaba Arasteh1 · Ali Soltani2 17Received: 27 August 2023 / Accepted: 12 February 2024 / Published online: 3 April 2024 18© The Author(s) 202419Abstract20Proximity to public transportation, such as subway stations is often considered as one of the main factors affecting urban 21land value and housing prices. However, the magnitude and direction of this impact may vary depending on the context and 22characteristics of each city. This paper aims to investigate the effect of subway station proximity on apartment prices in Shi-23raz, a major city in Iran with a population of over 1.8 million people. Using a hedonic price model and regression technique, 24we analyzed a dataset of 128 apartment transactions, controlling for apartment size, location, age, and other characteristics. 25The results differ from previous studies which suggested being closer to the transit station affects the property price due to 26accessibility. The findings suggest that distance to subway stations has an insignificant effect on apartment prices in Shiraz, 27with property size, location, and age being key determinants of apartment prices. The possible reasons for this result were 28discussed and recommendations were made for the development of further studies.29Keywords Subway accessibility · Proximity premium · Value capture · Apartment price · Hedonic price model · Shiraz30Introduction31The availability of transportation infrastructure is consid-32ered a crucial determinant of property value in urban areas. 33Proximity to public transportation, such as subway stations, 34can significantly affect residential property values [1, 2]. 35However, the magnitude and direction of this effect may 36vary depending on various factors, such as the characteristics 37of the subway system, housing market, and urban context. 38Investment in subway systems provides benefits beyond the 39public interest, including physical activity promotion [3], 40alleviation of traffic congestion [4], reduction of emissions 41[5], and expansion of consumer amenities [6].42Shiraz is the capital city of Fars Province in Iran, with a 43population of about 1.8 million people. In Shiraz, significant 44urbanization and population growth in recent years have led 45to an increased demand for housing. As a result, the housing 46market in Shiraz has become increasingly competitive, with 47prices varying greatly depending on location. One factor that 48has been suggested to impact apartment prices is proxim-49ity to subway stations. However, the extent of the influence 50of subway station proximity on apartment prices in Shiraz 51remains unclear.52Therefore, this study examines the impact of subway sta-53tion proximity on apartment prices in Shiraz using a hedonic 54price model. Specifically, we analyzed data on apartment 55prices and characteristics, as well as subway station loca-56tions and accessibility, to provide insight into the relation-57ship between subway station proximity and apartment prices 58in Shiraz.59Literature Review60Since the 1970s, numerous studies have examined the impact 61of rail station proximity on property values using various 62methods and data. These studies found that the relationship 63between rail station proximity and property values can vary 64based on several factors, such as distance from downtown, 65 * Ali Soltani 66 67ali.soltani54@gtmail.com; ali.soltani@flinders.edu.au.edu.au68 69Hamed Najafi Kashkooli 70 71hmd.njf.76@gmail.com72 73Khalil Hajipoor 74 75hajipoor@shirazu.ac.ir76 77Mojtaba Arasteh 78 79mojtabaarasteh@yahoo.com801 81Department of Urban Planning, Shiraz University, Shiraz, 82Iran832 84FHMRI, Flinders University, Adelaide, SA 5042, Australia85