Determinants of housing prices in Bucaramanga

Abstract

This article aims to analyze changes in the determinants of housing prices in Bucaramanga in 2005 and in 2012, after the implementation of the Metrolínea public transport system. The analysis uses the hedonic pricing method, which explains how the set of conventional characteristics and attributes of the housing environment influences the consumers’ willingness to pay. The results suggest that the characteristics of the property and its conventional attributes, such as social stratum, type of housing, and tenancy of a garage, have greater relevance than attributes of environmental quality. Similarly, the study evidenced a change in the significance of some variables from one period to another, which implies the emergence of new variables that may explain the behavior of housing prices and which could be related to the implementation of the new public transport system.