Does the Opening of a High-Speed-Rail Station Impact House Prices? Evidence from a Quasi-Natural Experiment: Reggio Emilia Mediopadana

This paper investigates the impact of the Reggio Emilia Mediopadana High-Speed Rail (HSR) station on local property prices, utilising a Difference-in-Differences (DiD) research design. The study leverages the quasi-random location of the station, situated between Bologna and Milan, to assess its effects on property markets. Using data from the Italian “Housing Market Observatory” (OMI) provided by the Italian Revenue Agency, we analysed property price trends across various geodetic distances and travel time zones, focusing on the differential impact on civil and commercial properties. Our results indicate a significant positive effect on civil (residential) properties, particularly in areas located 20–30 kms or 15–30 min from the station, with price increases ranging between 2 and 6%. These findings highlight the benefits of improved connectivity for suburban residential markets, where the demand for housing is driven by commuting convenience and affordability. In contrast, commercial properties saw minimal or no price increases, suggesting that businesses are less sensitive to the improved transport links provided by the HSR station due to potential negative externalities like noise and congestion. The study offers key policy insights, recommending that urban planning strategies align with transport infrastructure investments to enhance residential property markets. Additionally, complementary investments in local infrastructure may be necessary to boost the attractiveness of commercial properties. This paper contributes to the literature by offering robust empirical evidence of the heterogeneous effects of HSR on property markets, emphasising the differentiated impact on residential versus commercial property.