Impacts of externalities caused by tourism on real estate values and segmentation of the residential market in Barcelona

Abstract

This research examines the impact of externalities that are generated by flows and tourist attractions on the formation of real estate values ​​in the districts of Ciutat Vella, Eixample, Sants Montjuic and Sant Martí, and residential segmentation in Barcelona. The hypothesis is that tourist corridors and attractions in Barcelona create externalities that impact positively on the value of property for tourism unlike property for residents, thus creating different submarkets.

This analysis used a database of 1,100 flats offered for rent to residents and 622 flats offered for rent to tourists, located in the districts of Ciutat Vella, Eixample, Sants Montjuic and Sant Martí de Barcelona, ​​that was processed by hedonic price technique to obtain multiple semi-log linear regressions which demonstrated that tourists attach great value to hotel services offered by flats and appreciate staying near the main tourist attractions. However, in the residential market of the local population, are rated flats with amenities like air conditioning, heating, elevator, location in areas with less congestion, close to the sea, and on Via Laietana, which likewise for tourists represents a multiplier of property prices.

This research arises from the need to apply, in a big city, similar statistical methods that have been applied in previous studies to analyze the impact of tourism externalities on property values. Also, in Barcelona has not been made ​​residential market segmentation by property offer type (local and tourists).