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THE IMPACT OF BROWNFIELDS ON PROPERTY PRICES
Abstract
The existence of old unused buildings, called brownfields is one of the major urban problems today. In addition to the well-known environmental or social problems, the existence of brownfields is linked to economic problems, including, among other things, the decline in the prices of surrounding, especially residential, properties because of a reduction in social status and the prestige of the site. This article attempts to quantify this problem in a framework. On the example of several locations in the Moravian-Silesian Region in the Czech Republic, it compares the actual prices of residential properties and compares the achieved prices of similar properties depending on their distance from the large brownfields. Commonly used coefficients adjust real estate prices to eliminate the other effects they have on real estate prices as much as possible. These coefficients are precisely specified and used as is usual in real estate valuation practice. Finally, the data are clearly interpreted.
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