Year of Graduation
The Impact of Moscow Central Circle Launch on Property Values
Urban Development and Spatial Planning
This research was an attempt to evaluate the impact of Moscow Central Circle (MCC) launch on living property prices, which is one of the most important external benefits of city rail transport development. The hedonic price model was applied to flat rent data for three following periods in order to track the changes of MCC accessibility variable. For most of regression equations, it appears to be significant, although the scale and direction of the effect differ with the changes of territory. For the whole city of Moscow, the impact of MCC proximity was growing steadily, but it was still less than for the Metro. In closest walking areas of MCC stations the influence changed rapidly and positively for mostly industrial districts and residential areas with existing metro stations, probably because of growing mobility options for citizens. The strongest increase in rent size was found in residential areas without metro, where MCC became a popular mode of public transport and increased the attractiveness of living. Finally, the overall impact is estimated to be around 0.6 bn. Russian rubles of additional rent payments yearly for newly leased flats. However, this figure is significantly less than the total amount of investments in line opening (237 bn rubles).