The Impact of Light Rail Transit on Commercial Property Value: A case of Addis Ababa
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Date
2018-10
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EiABC
Abstract
The LRT of Addis Ababa is the first of its kind in sub-Saharan Africa. The most part of it is on the surface of the ground and fenced that cuts of main crossings that impede mobility in both pedestrian and car drivers. The impact of LRT station on commercial property value is studied in different countries but not in Ethiopia, consequently, it is found necessary to study in our country context. In this regard the impact of LRT station on commercial space rent, push and pull effect of the stations, and socio-economic and environmental effect is examined in two selected stations. Data were collected using an interview, questionnaire, field observation, and physical measurement. For quantitative analysis, this study has used cross-section data of monthly rent the assumption of multiple linear regressions were tested before the analysis was carried out. The level of occupancy and business activity has been analyzed based on the data collected from respondents. The linear relationship between rent per meter square and distance from LRT station has inverse relation but the statistical test shows that the relationship is insignificant. Although the LRT station has no significant impact on rent per meter Square, commercial buildings near to LRT station is more occupied than buildings far from stations. Therefore a building near to LRT station has more value than buildings far from stations. This is because; the value of the property is a cumulative effect of rental price and occupancy level of the building. Furthermore, LRT station is being a source of problems that is noise, waste, pollution, and traffic congestion, those problems has no impact on commercial property value. These problems come from the situation that LRT has the lack of crossing and the stations serve as pedestrian crossings. To alleviate the problems, the pedestrian crossings should be constructed at the mid-distance between two consecutive stations which lacks pedestrian crossings
Description
A Thesis Submitted to Ethiopian Institute of Architecture Building construction and city development to the school of graduates studies of Addis Ababa University in partial fulfillment for the requirements of the degree of masters of Arts in urban land and property valuation
Keywords
Property value, MLR, crossings, Occupancy level, LRT, Station, rent