The impact of neighborhood services on land values: an estimation through the hedonic pricing model

A strong need exists to increase the knowledge and recognize the values of neighborhood services. This paper makes an attempt to examine the impact of neighborhood services on land values, through analysis based on results obtained from multi linear regression analysis. This case study was done in area of dense urban settlement to check the consequence of neighborhood services through the hedonic pricing model base variables which include the structural, locational, community and neighborhood services. The regression coefficient was checked at (p < 0.05) level of significance for each variable. The primary data was collect through the questionnaire filling by random sampling and Punjab Urban Gazette was used for the verification of land values in study area. The results found a valuable potential on land and property values of neighborhood services through the regression analysis results express through R (0.926), R-2 (0.856) and coefficient tables to represent the effect of each individual variable on property and land values. Every individual variable play role in defining the values of land and property based upon its utilization such as larger the structure of a property, more the covered area, larger size of a property more the land area higher price. Similarly, for locational factor study in geography, a piece of land adjacent to the road have high land values 50-70% compare to those located at distance. Very less attention has been paid on such issues in the world due to lack of effective urban planning and research on such crucial issues. If empirical studies on such issue has been done, effective way can be obtained for urban planning.