Estimate of a hedonistic model for the Price of properties in the áreas of Pozos Colorados, Bello Horizonte and Don Jaca of the city of Santa Marta D.T.C.H, Colombia.

Abstract

Abstract The purpose of this article is to identify the determining variables of the price of real estate in the areas of Pozos Colorados, Bello Horizonte and Don Jaca in the municipality of Santa Marta, Colombia, including the environmental variable in the pricing. This is done by applying the technique of hedonistic prices in an econometric model. The importance of this study lies on the fact that in the Department of Magdalena, concretely in Santa Marta, no studies of economic pricing that include the environmental variable or the quantification of the environmental impact on property prices under the externalities of the real sector, have been carried out. By applying the methodology of hedonistic prices, it was meant to evaluate updated information of the prices of properties in 2005, identifying six variables, one of which (the “estrato”), had no relevance or incidence on the prices of properties in the area under study. The remaining five variables, namely area (m2), built area (m2), distance to the PRODECO Port, distance to the beach, and distance to the main access road where coal is transported on large trucks (Toncal del Caribe), as well as the environmental variable, appeared to have incidence on the prices of real estate on the areas under study.