A logit-based model for measuring the effects of transportation infrastructure on land value

Mutual interactions between transportation and land use have long been debated. Despite progress made in computational technology, the study of these interactions is not adequately developed. The most important aspect of such interactions is given by the changes in land values due to changes in transportation infrastructures. We consider the behavioural features of these interactions along with the constraints on the land and/or zoning restrictions and propose a reliable model for the first time to predict land value changes with respect to changes in transportation facilities and accessibility. The proposed model is a logit-based mathematical programming methodology where the relative price of land is predicted with respect to transportation accessibility, neighbourhood amenities, location premium, availability of land, and zoning regulations. A real-world case study is used to exhibit the applicability of the proposed methodology and demonstrate the efficacy of the algorithms and procedures.