This report aims to determine the economical benefits of improved public transport in some of Stockholms northern suburbs that are strategic locations for further urbanization. The correlation between public transport (PT) and property values will be explored.
How will the PT scenarios that are suggested here increase the value of real estate in the regional focal points? How can the financial winners by this improvement be prepared to take part in financing the PT solutions?
Stockholm county is populated by just over 2 million people today and growing at a quick pace, it is likely to reach 2,23 million inhabitants by 2018.1 Urban growth puts pressure on the city’s infrastructure, buildings and people. Stockholm today shows strong tendencies of being a city of monocentric model.
The theory of a monocentric city is constructed on the idea that all economic transactions are made in the Central Business District (CBD). The land is homogenous and shares the same properties everywhere. Value of locational advantage is capitalized in the form of land rent, meaning close access to CBD gives higher rents and locations further away from the CBD give lower rents. However, the price of commuting increases with the distance from CBD.
Stockholm has a strong inner-city where most of the region’s economical transactions take place. Housing prices in the city are steadily increasing as not many new homes are built while there is an increase in demand. Prices in regional focal points as well as suburbs closer to the city are significantly lower than in the inner-city.
Author: Pikosz, Alexander | Tiberg, David