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Effects of investments in GI on buyers' Interest in a Swedish residential apartment development
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Real Estate Business and Financial Systems.ORCID iD: 0000-0002-8745-7390
Stockholm School of Economics, Department of Marketing and Strategy, Box 6501, S-113 83 Stockholm, Sweden.ORCID iD: 0000-0002-6500-1923
University of Technology Sydney, Faculty of Design Architecture & Building, School of Built Environment, 15 Broadway Ultimo, NSW 2007, Australia.ORCID iD: 0000-0001-9266-1858
University of Technology Sydney, Institute for Sustainable Futures, 15 Broadway Ultimo, NSW 2007, Australia.ORCID iD: 0000-0001-8066-9019
2026 (English)In: Cities, ISSN 0264-2751, E-ISSN 1873-6084, Vol. 168, article id 106419Article in journal (Refereed) Published
Abstract [en]

Cities require a change in the design of medium and high-density housing to increase green infrastructure (GI). GI provides ecosystem services: including better air quality, removal of carbon dioxide, urban heat island attenuation, biodiversity, attenuation of stormwater runoff, and space for people to have social interaction and engagement. However, GI requires investment by developers. To be worthwhile, such investment must make developments more attractive to residential buyers, increasing their interest to buy. To date, no research has explored if that is the case, and if so, to what extent, by disentangling how such interest may arise. This paper explores the causal process and assesses to what extent investments in developmental GI influence people's Interest in apartments for sale in developments, which is expected, in turn, to influence their willingness to pay for an apartment. This is done by developing a causal structural model and testing it in two experimental studies carried out on random national samples of apartment speculators in Sweden in 2021 (n = 421) and in 2022 (n = 401), under two different property market conditions. Using an innovative research design with virtual reality, 5 versions of a courtyard in a medium density residential development were developed. One of these was then randomly shown to each research participant. The experiments showed that investment in the GI had a positive effect on the assessment of the courtyard, which increased the interest in the development and the apartments for sale. The increased interest from investments in GI should thus motivate developers to such investments.

Place, publisher, year, edition, pages
Elsevier BV , 2026. Vol. 168, article id 106419
Keywords [en]
Apartment values and demand, Courtyard attractiveness, Green infrastructure, Green roofs, Green spaces, Green walls, Social spaces, Virtual reality stimuli
National Category
Landscape Architecture
Identifiers
URN: urn:nbn:se:kth:diva-369603DOI: 10.1016/j.cities.2025.106419ISI: 001567801900001Scopus ID: 2-s2.0-105014848963OAI: oai:DiVA.org:kth-369603DiVA, id: diva2:1997424
Note

QC 20250912

Available from: 2025-09-12 Created: 2025-09-12 Last updated: 2025-12-08Bibliographically approved

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Zalejska-Jonsson, Agnieszka

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