Amenity value

Amenity value by local residents: added value of homes

Description

Homes in the vicinity of green space (nature, forest and agricultural areas) have added value due to the view of the area (visual enjoyment) and the proximity of these areas for recreation. The effect on house prices can be found up to one km (some literature even indicates further distances). Proximity to recreation is already included in the above estimates for recreation, both regarding numbers of visits and their appreciation. To avoid double counting, we therefore limit ourselves to visual pleasure. The extent of this is based on studies in which a connection has been found between the value of homes with a view of green space compared to homes with a view of petrified space (hedonic price method). Your own garden is not included in this benefit.

Required input data:

• Number of homes within 400 m of green open space in your study area

Qualitative appreciation

In the ECOPLAN study project, an ecosystem service map was drawn up to map the added value that greenery generates for the homes in the area for Flanders. Based on this map, a score was drawn up based on the added value (monetary valuation)/ha of green space. A high score means that on the one hand there is a lot of greenery within the study area and on the other hand there are many homes within 400m of the area.

Quantitative valuation

The effect of a view of greenery is expressed in a percentage change in the value of the homes. We use figures from a recent study by Helger and Vastmans (2016), which determines the effect of open green space on market prices for housing in Flanders using the hedonic price method. For more information about the study, see background information at the Nature Value Explorer.

We use the linear regression equation where an increase in natural greenery (nature, forest, park) within 400 m of the home by 10% leads to an added value of the home by 0.75% and for an increase of 10% agriculture by 0.47 %.
If we translate this into hectares, this means that 1 hectare of green space within a radius of 400m increases the price of the house by 0.15%^§ on average and 1 hectare of agriculture increases the price by 0.09%.

Because in the Nature Value Explorer we start from the greenery and not from the house as in the original study, we still have to make a correction for the surface area of an area that is within 400 m of the house. For an area of, for example, 200 ha, only part of this area will be within 400 m of the homes and not the entire 200 ha. This is corrected in the formula.

Monetary appreciation

For the monetary valuation, we apply the calculated % to the average value of the number of homes in a radius of 400 m around the area.

The information regarding the average value of the home is the same as that for valuation of effects on noise and amounts to €240,000 or an annual value of €11,172/year (2019 prices). We prefer to calculate with annual values, so that we are consistent with the other services.

Assumptions

• We cannot distinguish between the quality of greenery based on the available data. However, there is a distinction between natural green/forest and agricultural green.
• We calculate the benefits for an average home.
• For the correction factor we assume that the houses are located outside the study area. Of course, there may also be houses within the study area.

^§1 hectare represents a share of 10,000m2/(400400π) = 0.019894. This share can then be multiplied by the estimated coefficient for green space, 0.0755. This implies a value of 0.001502, which must then be multiplied by 100 to arrive at a percentage increase, 0.1502%.

Numbers to use

Table: scores for the qualitative valuation of living enjoyment

Lower limit (monetary valuation/green area)	score
0	1
400	2
900	3
1800	4
3600	5
4500	6
5400	7
6300	8
7200	9
8100	10

source: Based on map of additional housing costs due to green ECOPLAN 2016

Quantitative valuation

(Number of hectares of green x 0.0015+number of hectares of agriculture x 0.000939) x correction of area size

Table: Area size correction

Area size (ha)	% in buffer 400m around homes
5-20	100
21-50	94
51-100	70
101-200	42
201-400	23
401-600	16
601-800	13
801-1000	10
1001-1200	9
1201-1400	7
1401-1800	6
1801-2000	5
>2000	3

Monetary valuation

Quantitative valuation €11,015/home x number of homes within 400 m area

Translation to an indicator

The quantitative valuation is used as an indicator in the dashboard.

An example

For the example, we refer to the Dutch version of the manual.