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Form or function?: the effect of new sports stadia on property prices in London

Ahlfeldt, Gabriel M. and Kavetsos, Georgios (2014) Form or function?: the effect of new sports stadia on property prices in London. Journal of the Royal Statistical Society: Series A (Statistics in Society), 177 (1). pp. 169-190. ISSN 0964-1998

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Abstract

Professional sports facilities are among the most expensive development projects. Assessing the external effects related to these and the channels through which these effects operate is a challenging task. We propose a strategy to value the external effects stadia deliver to their neighbourhoods based on the variation of property prices. Our strategy allows for unobserved spatial heterogeneity, anticipation effects, and disentangles the stadium’s function as a sports facility from its form as a physical structure that (visually) dominates the neighbourhood. We apply this strategy to two of the largest stadium projects of the recent decade, the New Wembley and the Emirates Stadium in London. Our results suggest there are positive stadium effects on property prices, which are large compared to construction costs. Notable anticipation effects are found immediately following the announcement of the stadium plans. We further argue that stadium architecture plays a role in promoting positive spillovers to the neighbourhood.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1111/(IS...
Additional Information: © 2014 Royal Statistical Society
Library of Congress subject classification: G Geography. Anthropology. Recreation > GV Recreation Leisure
H Social Sciences > HG Finance
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Sets: Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Departments > Social Policy
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 09 Nov 2012 16:13
URL: http://eprints.lse.ac.uk/47352/

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