World heritage designation and residential property values: the case of Old Rauma, Finland

What is it about?

The studies in heritage economics have assessed the influence of the property market on heritage listing and designation at either the national level, the local level or a mix of national-local levels. This paper contributes to the literature by analysing the impact of a UNESCO world heritage designation. UNESCO is the leading global institution which deals with the protection of heritage sites that transcend national and local boundaries. Taking Old Rauma, Finland, as a case study, the research results indicate a positive, but insignificant, relationship between the property sale prices (Euros/sqm) and heritage designation. However, the total sale prices are higher in Old Rauma as the properties are significantly larger in Old Rauma compared to other properties in Rauma.

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