This thesis analyzes variations in office rents in Ankara. The theoretical background of this study is related to the hedonic methodology, which is extensively applied for explaining price or rental price variations of the real property. Given this theoretical framework, hedonic regression model is utilized for the estimation of hedonic price indices by using the cross sectional data of the office market in Ankara for the year 2002. Hedonic price function is specified in the log linear functional form and is estimated with the Ordinary Least Squares technique for two models. The models include the same variables / however, Model 1 differs from Model 2 in including the location variables. The estimation results obtained from the models suggest that height and construction quality of the building act as proxies for the locational characteristics. Also, it is found from Model 1 that locational characteristics have the greatest effect on the rental prices of the office units. In order to verify this fact, Model 1 is tested against Model 2 and vice versa based on alternative tests for non-nested models. The results of non-nested tests indicate that Model 1 is preferred to Model 2. This result is important in the sense that locational characteristics are found to be significant in explaining the rental price variations. Besides location variables, the other variables related to physical attributes and lease characteristics of the office property are also evaluated from the estimation results of Model 1. From the empirical results, it is finally concluded that locational characteristics explain the spatial rent variations of the office property in Ankara to a large extent.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/1079342/index.pdf |
| Date | 01 September 2003 |
| Creators | Ustaoslu, Eda |
| Contributors | Guzel, Alper |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.S. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
Page generated in 0.0022 seconds