External Factors, Housing Values, and Rents: Evidence from Survey Data

This study uses a rich survey data set to analyze housing values and rents in Istanbul, Turkey. In addition to variables related to the location and physical characteristics of the properties, the data involve a number of qualitative questions related to a set of external factors, such as the occupants’ levels of satisfaction with green area, view, transportation, and shopping facilities.We find that rents and property values respond to different external factors. Although the level of satisfaction with green area has a significant effect on both property values and rents, the levels of satisfaction with access to transportation and shopping facilities have a significant effect on rents only. We also examine how rents and values vary across the districts of the city and find that rents are more sensitive than property values to the district.