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Impact of metro in Thessaloniki on the values of properties and businesses

Impact of metro in Thessaloniki on the values of properties and businesses

Impact of metro in Thessaloniki on the values of properties and businesses

 

There is a relationship between proximity to transportation and real estate prices. It can be positive or negative, depending on the type of the transport. Most of the times the effect is positive but limited to a short distance around transport projects.

Even though this is not always the case, most of the times, we can notice a positive effect of transportation infrastructure proximity on property prices. Values usually begin to rise from the moment of  the official announcement regarding the construction, they to rise during construction reaching a maximum just before operating. Also, in case of an improvement or expansion, there may be noticed a further increase.

According to studies conducted in the city of Thessaloniki, Greece, it is expected that the metro system will have a big impact to businesses around the metro stations.

We mention some important information derived from the research of (Nikiforiadis, Roukouni, Basbas and Chrysostomou, 2020), who studied the expectations of the impact of the metro stations at the area of the centre and eastern city. They chose 10 stations, excluding  the stations that are meant to serve campus areas and residential areas. Buffer zone for each station was 250 meters radius.

The research, included two sections. The first, included questions about business characteristics and mobility characteristics of employees and customers.

The second, included business owners expectations regarding the metro stations.

 

 

The analysis showed that the business owners are expecting many benefits of the metro construction project, an increase of business revenue and rental prices. Also, the businesses which are closer to the station, deal with parking problems and especially restaurants and cafes, will have greater benefits.

 

Some important research statistic information:

 

  • 13% of businesses are located 50 meters radius, 64% 51-200 meters radius, 23% 201 – 250 meters radius.
  • 73% refers to retail shops, 3% offices, 2% parking facilities, 9% restaurants/cafes and 13% services.
  • The 37% of owners chose the specific business location due to its commercial character, 19% due to short distance from their residence, a 17% chose the area due to the fact that it is easily accessible by public transport, 3% chose the area based on how easily they can find a parking spot.
  • 42% of employees approach the workplace by private car, 23% walking,17% motorcycles and 17% public transport.

 

The research revealed that owners and professionals have really high expectations be the metro:

  • 80% expect increase in revenue, the 61% of them expect an increase between 10 – 30%, a 31% expect an even higher present .
  • 87% expect to see improvement of commercial character and also an improvement of quality of life.
  • 82% expect an increase in rental prices and the 48% of them believe that the increase will be between 10 -30% and the 27% of them between 30 – 50%.

 

Eastern city
Center of city, stations
Eastern city
Eastern city, stations

 

 

Article based on the study of:

Nikiforiadis, A., Roukouni, A., Basbas, S. and Chrysostomou, K., 2020. Do businesses expect benefits from the existence of metro stations in their area? A case study in Thessaloniki, Greece. Transportation Research Procedia, 47, pp.259-266.

 

 

 

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