Distinctively different – a new approach to valuing good architecture

CrouchEnd3AT New research published by Gabriel Ahlfeldt & Nancy Holman indicate that good design maters and adds cash value to property prices.  What makes the findings of our most recent research exciting is that our estimate of the capitalisation effect for distinctive architecture is based on a quantitative metric and comes closer to a causal interpretation than previous studies. In fact, for each step on a five-point scale, ranging from not-at-all-distinctive to very distinctive, we find residential property prices change by £38,700. This is a substantial effect, even if within neighbourhoods our index typically does not vary by more than one step.



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