Assessing the rent gradient hypothesis and amenities theory for the Viennese apartment market

What is it about?

This paper examines rent-gradient hypothesis and amenities theory for the apartment market in Vienna. Findings confirm a negative rent-gradient for Vienna – constant-quality apartments located in the CBD are sold for a premium. CBD and some other nearby districts form the most attractive parts of the city in terms of amenities.

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Why is it important?

The methodology used in this study is based on recent developments in spatial econometrics. These techniques are aimed at producing accurate hedonic estimates of implicit prices. Findings from traditional hedonic models are compared and contrasted with those of new spatial models.