Changes in the valuation of proximity to protected open spaces over time

The amenity value of protected open space can be derived using hedonic price methods. In these models, the price of real estate property is a function of property characteristics and other variables, including distance, size, or share of open space. The models can be estimated using geolocated transaction data from real estate markets. In this study, we estimate the value of protected and agricultural open space using multi-year data from Israel. Our results show that the effect of protected open space on property prices is positive, and that of agricultural land is negative, and it differs for different types of protected and agricultural land. In the past decades, the value attributed to open space as reflected in real estate markets has changed systematically. The COVID-19 pandemic led to a decrease in the premium for proximity to protected open space and also to a decrease in the negative value of proximity to agricultural open space. These results have to be taken into consideration in planning and in the future allocations of land to different uses and protected space designation.