How public green space is valued by residents of high-rise buildings in Rotterdam

Abstract

This research investigated the determinant effect of public green spaces (PGS) on high-rise housing prices in Rotterdam. The growing population and tendency of people to gravitate towards city centers, have led to an increase in high-rise residential buildings in The Netherlands. It is therefore of high importance to optimize the integration of these buildings within its surroundings to increase the liveability, an important aspect of this is PGS. The gap in literature and social problems showed that there is a current mismatch with the desired and current needs of PGS regarding residents of high-rise buildings. The importance of PGS for residents of high-rise buildings is reflected by the housing price. The housing price indicates how much residents are willing to pay for certain variable of PGS and was used to evaluate different variables of PGS. The variables of PGS are divided into five domains: the environmental, social, cultural, functional and safety domain. Each of the domains indirectly affects the liveability of residents and citizens. The domains are identified by a comparison between international studies and Dutch municipal vision documents. The identified variables of the domains are further analyzed by a quantitative research, performed by a hedonic pricing model (HPM). Within this HPM, nine high-rise buildings were selected in the city of Rotterdam that provided an input of 977 apartments for the HPM. The regression showed a generally positive determinant effect of PGS on the housing price for high-rise buildings in Rotterdam. The strongest effect is the presence of having a PGS within 300m from the apartment, which impacts the housing price with a maximum of 17.7%. The view effects included in the HPM show a positive effect for both the number of green views and the specific PGS. The effects of the other PGS domains are correlated with the distance and view variables which makes it complex to quantify the effects of these domains separately. Interviews with developers of high-rise buildings, Stichting Hoogbouw and the municipality of Rotterdam were conducted to validate the results of the regression analysis and to assess the variables and aspects that are more difficult to objectively measure, such as the attractiveness of PGS. The main take-away of this research is that PGS have a positive determinant effect on the housing price of high-rise buildings which emphasizes the importance of having PGS nearby high-rise buildings. This study could be used as part of a reference approach for marketing research or during approval sessions regarding investment decisions to make stronger argumentations to implement PGS in the surrounding of high-rise buildings.