Abstract
Purpose
This study aims to investigate the impact of proximity to the Al Aweer sewage treatment plant (STP) on residential property values in Dubai’s International City. It hypothesises that properties closer to the plant experience greater value diminution due to odour emissions.
Design/methodology/approach
The research uses traditional hedonic pricing models to analyse the impact of odour emissions on property values. Advanced machine learning techniques and spatial econometric models were considered but deemed less appropriate due to the small, homogeneous data set. The study uses a comprehensive data set of residential flats within International City.
Findings
The results indicate a significant negative impact of odour emissions on property values. Properties closer to the STP show a marked decrease in value, highlighting the importance of environmental factors in real estate valuation.
Originality/value
This study is unique in the United Arab Emirates, focusing on the environmental issue of odour emissions in a stigmatised area. It provides valuable insights for policymakers and real estate professionals, emphasising the need for accurate environmental impact assessments in property valuation.
This study aims to investigate the impact of proximity to the Al Aweer sewage treatment plant (STP) on residential property values in Dubai’s International City. It hypothesises that properties closer to the plant experience greater value diminution due to odour emissions.
Design/methodology/approach
The research uses traditional hedonic pricing models to analyse the impact of odour emissions on property values. Advanced machine learning techniques and spatial econometric models were considered but deemed less appropriate due to the small, homogeneous data set. The study uses a comprehensive data set of residential flats within International City.
Findings
The results indicate a significant negative impact of odour emissions on property values. Properties closer to the STP show a marked decrease in value, highlighting the importance of environmental factors in real estate valuation.
Originality/value
This study is unique in the United Arab Emirates, focusing on the environmental issue of odour emissions in a stigmatised area. It provides valuable insights for policymakers and real estate professionals, emphasising the need for accurate environmental impact assessments in property valuation.
| Original language | English |
|---|---|
| Journal | International Journal of Housing Markets and Analysis |
| Early online date | 6 May 2025 |
| DOIs | |
| Publication status | E-pub ahead of print - 6 May 2025 |
Keywords
- Dubai
- Environmental stigma
- Hedonic pricing model
- Housing prices
- Odour emissions
- Odour pollution
- Property values
- Real estate appraisal
- Sewage treatment plant
- Wastewater treatment facility
ASJC Scopus subject areas
- General Economics,Econometrics and Finance
