Study of the Effect of the Transmilenio Mass Transit Project on the Value of
Properties in Bogotá, Colombia

Lincoln Institute of Land Policy Working Paper No. WP07CA1

44 Pages Posted: 8 Apr 2010  

Jorge Andres Perdomo Calvo

Universidad del País Vasco (UPV/EHU) - Department of Applied Economics III (Econometrics and Statistics)

Camilo A Mendoza

Lincoln Institute of Land Policy

Andrés Francisco Baquero-Ruiz

Universidad de los Andes, Colombia

Juan Carlos Mendieta-Lopez II

Universidad de los Andes, Colombia - Department of Economics

Date Written: Octubre 9, 2007

Abstract

The new commercial and housing developments around the TransMilenio Bus-Rapid-Transit System (BRT) of Bogotá indicate that accessible to the system generates benefits for adjacent properties that must be reflected in the prices of land and buildings. This paper contributes to an understanding of the impact of TransMilenio on the price of adjacent properties. It uses Propensity Score Matching (PSM) to compare selling prices of buildings in two areas of Bogotá that are homogeneous with respect to their urban and socioeconomic characteristics except that one of them has access to TransMilenio and the other does not. We find that properties located in the TransMilenio area of influence enjoy a “premium” that is reflected in their value of between 5.8% and 17% for residential buildings. We believe that determining and quantifying these impacts will enable the national and local authorities to design mechanisms to help them to obtain additional resources for the expansion of TransMilenio.

Keywords: Bus Rapid Transit System, Accesible, Benefits, Prices Land, Impact Evaluation, Propensity Score Matching

JEL Classification: R40, R42, R49

Suggested Citation

Perdomo Calvo, Jorge Andres and Mendoza, Camilo A and Baquero-Ruiz, Andrés Francisco and Mendieta-Lopez, Juan Carlos, Study of the Effect of the Transmilenio Mass Transit Project on the Value of Properties in Bogotá, Colombia (Octubre 9, 2007). Lincoln Institute of Land Policy Working Paper No. WP07CA1. Available at SSRN: https://ssrn.com/abstract=1586381 or http://dx.doi.org/10.2139/ssrn.1586381

Jorge Andres Perdomo Calvo (Contact Author)

Universidad del País Vasco (UPV/EHU) - Department of Applied Economics III (Econometrics and Statistics) ( email )

Avda. Lehendakari Aguirre 83
Bilbao, Vizcaya 48015
Spain

Camilo A Mendoza

Lincoln Institute of Land Policy ( email )

113 Brattle Street
Cambridge, MA 02138-3400
United States

Andrés Francisco Baquero-Ruiz

Universidad de los Andes, Colombia ( email )

Carrera Primera # 18A-12
Bogota, D.C. 110311
Colombia

Juan Carlos Mendieta II

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

Paper statistics

Downloads
209
Rank
120,452
Abstract Views
1,856