World heritage designation and residential property values: The Case of Old Rauma, Finland

Residential property values in Old Rauma, Finland, show no statistically significant increase due to its UNESCO World Heritage designation. However, properties in the area command higher total sale prices, primarily because they are significantly larger than other properties in Rauma. The study employed a hedonic price model using sales transaction data from 2005 to 2012, revealing that while heritage status may not directly boost per-square-meter prices, it contributes to overall property value through size advantages. This finding offers nuanced insights into the economic impacts of World Heritage designation, challenging assumptions about its universal benefits.

Amar, J., & Tyvimaa, T. (2022). World heritage designation and residential property values: The Case of Old Rauma, Finland. 28th Annual European Real Estate Society Conference. https://doi.org/10.15396/eres2022_21