New report calculates the value on coastal proximity

This research, conducted by economists Tom Gillespie and Stephen Hynes, SEMRU, along with Ronan Lyons (Trinity College Dublin), has analysed over half a million sales and rental property listings placed over the last decade and calculated the extent of the sea-view enjoyed by properties and the average increase in value attributed to this. The paper is the first to directly measure the relative values of aesthetic and recreational amenities associated with coastline, and the first to compare sale and rental price premiums. The authors found that buyers are paying up to 32% more for properties close to beaches and similar shorelines. Properties located within a 1km radius of a blue flag beach are, on average, €6,200 more expensive, though a negative price effect was found to be associated with properties within 500 metres of cliffs, most likely attributable to the risks of structural threat from coastal erosion. The results provide clear evidence that “blue space” coastal amenities are rewarded in the Irish housing market. The report sets out two main sets of policy implications relating to 1. funding the maintenance of coastal amenities and 2. making provision for high-density developments closer to coastlines to accommodate urbanization and city growth. See for a link to the full report.