Estimation of Apartment Submarkets in Dublin, Ireland

Abstract

This study compares apartment submarkets within a major European city. The price behavior of the Dublin, Ireland apartment market is tested using hedonic models and aggregate and disaggregate data. The results strongly indicate that the modeling of apartment markets at the disaggregate level does result in significant improvements in comparison to estimations undertaken at an aggregate level. This particular apartment market is especially interesting, due to the introduction of fiscal incentives. To fully understand the Dublin apartment market requires an appreciation of the role played by tax breaks for owner-occupiers and investors in urban renewal locations. The results show that different submarkets responded differently.

Keywords: apartment, price behavior, Dublin, tax breaks, urban renewal

JEL Classification: R11-15, R21, R31, C50-53