Housing Market in Malaga: An Application of the Hedonic Methodology

which by definition increases the price in a significant way (68.46% or 139,304.64 €), is an attic
flat (8.12% or 16,529.12 €), has one extra bathroom (12.63% or 16,409.62 €) or private parking
(10.69% or 9,887.85 €). Other attributes or services, such as a caretaker (4.86% or 9,887.85 €)
or elevator (4.81% or 9,779.49 €), have less value. It is also worth noting that the market
positively values a dwelling in a good condition and ready to move in (4.14% or 8,426.22 €).

The marginal contribution to house pricing of the surface area (0.37% or 608.41 €), as
well as the number of bathrooms is conditioned by the fact that, although their contribution to
the price is positive, it is so at a diminishing rate since the marginal value of an additional unit of
surface area (1 m² more) or bathroom (1 extra bathroom) decreases as their number increases.
This is shown in Table 4 as the marginal values of the percentage variations in housing prices
for different values of the variables analyzed. The rest remains constant.

Note that as the quantity increases (m² or bathrooms) the increasing percentage in the
housing price decreases.

On the other hand, regarding location attributes, the most valued districts in Malaga city
are district 2 (eastern area of the city) (15.38% or 31,284.45 €) with very high socioeconomic
conditions and, second, but at a great distance, district 10 which is a growing area (3.32% or
6.902,43 €). Among the attributes negatively valued by the market, the most significant is
having little natural light (-16.28% or 33.122,16 €) which considerably lowers the market value
of the dwelling. The need for refurbishment due to a generally poor state (-9.04% or 18.399,10
€), or due to the age of the building (-0.25% or 514.59 €), and the fact of being located in a

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