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Estimating price gradient in Bratislava with different distance measurements

Štefan Rehák (Department of Public Administration and Regional Development, Faculty of National Economy, University of Economics in Bratislava, Bratislava, Slovakia)
Marek Káčer (Credit Management Research Centre, Accounting and Finance Division, Leeds University Business School, University of Leeds, Leeds, UK and Department of Finance, Faculty of National Economy, University of Economics in Bratislava, Bratislava, Slovakia)

Journal of European Real Estate Research

ISSN: 1753-9269

Article publication date: 6 February 2019

Issue publication date: 13 September 2019

Abstract

Purpose

This paper aims to analyse the price gradient of apartments in the city of Bratislava with different measurements of travel time and distance to the city centre.

Design/methodology/approach

The price gradient is analysed by means of a hedonic price model. To overcome the problem with spatial autocorrelation in the data, the authors apply a spatial error model.

Findings

The paper provides empirical insights into the size of the price gradient in the city of Bratislava. In addition, it suggests that even in the case of a city with complicated urban structure, Euclidean distance is the best proxy for distance to the city centre and it is not necessary to use a more demanding distance calculation in hedonic price models.

Originality/value

Price gradients are usually analysed in western European or American cities whose urban structure differ from the cities in central and eastern Europe. This paper is the first in which the price gradient is estimated with different measurements of time and distance to the city centre using a spatial econometric model.

Keywords

Acknowledgements

This article was developed with the support of the VEGA research project no. 1/0886/16 Hedonic models of valuation in the real estate market. The authors would like to acknowledge the contribution of Adam Síbert for his work in gathering and cleaning sample data. Authors would also like to thank participants of the ERES conference in Reading 2018 for their helpful feedback.

Citation

Rehák, Š. and Káčer, M. (2019), "Estimating price gradient in Bratislava with different distance measurements", Journal of European Real Estate Research, Vol. 12 No. 2, pp. 190-206. https://doi.org/10.1108/JERER-10-2018-0045

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited