Analysis of the Impact of the Transmilenio Mass Transportation Project on Real Estate Property Values in Bogotá, Colombia
Start Date: November 2006
End Date: December 2007
Jorge A. Perdomo-Calvo, Economist, Universidad Jorge Tadeo Lozano, Colombia; Camilo A. Mendoza-Álvarez, MA in Urban Development and Administration, Departamento Nacional de Planeación, Colombia; Juan Carlos Mendieta, Professor, Universidad de los Andes, Colombia; and Andrés F. Baquero-Ruiz, M.Sc. in Regional and Urban Planning Studies, Miniterio de Transportes de Colombia.
The new commercial and housing developments around the BRT Transmilenio System in Bogotá show that access to the system benefits affected properties and these benefits are reflected in increased land and building prices. This study contributes to the understanding of the impact of the Transmilenio on real estate prices by comparing, through the use of propensity score matching techniques (PSM), the sales prices in city zones that have similar characteristics except one that has access to the BRT. The study found that residential properties located within the area of influence of the Transmilenio gain a price premium of 5.8% to 17%. This suggests that knowing and quantifying these impacts may enable national and local government authorities to design mechanism to mobilize additional resources for the expansion of the BRT system.