Housing economic valuation in the metropolitan area of Puebla, Mexico

Abstract

Objective: The purpose of this research was to identify the sale value of homes in the metropolitan area of the city of Puebla, using the hedonic price technique to determine a model that takes into consideration relevant variables that explain the housing prices.
Methodology: An overall problem is land mismanagement. The location of the homes can affect their price. A hedonic price model helps to determine the relative importance of the variables in the final price. This information provides an initial perspective to the people who are interested in acquiring a home in the study area. The model was built based on the information collected from 182 properties and it was analyzed using the
SPSS software version 28.0.0.0.
Results: The most significant variables that determine housing prices, which presented a multiple valuation coefficient of 64.3%. The effect of the variables on the housing value was determined by means of elasticities.
Study Limitations: There were no limitations for this report.
Conclusions: The following variables were significant: new home, number of bathrooms, built‐up area, private security, distance to the downtown of Puebla, and distance to a park.