Journal
APPLIED ECONOMICS
Volume 53, Issue 34, Pages 3962-3971Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/00036846.2021.1890685
Keywords
Relative bargaining power; hedonic regression; housing markets; real estate investment
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Investors in the Corsican housing market have stronger bargaining power, with their bargaining power increasing as the property size increases and the distance from the sea is longer.
This study uses a bargaining power model to examine the relative bargaining power of those who self-identify as being either residential home traders or investors, both in the Corsican housing market. In doing so, ours is the first study to measure investment advantages (disadvantages) related to property location and size. Results indicate that investors pay, on average, 6.5-10.5% more and sell, on average, for 6.5-10.5% less than those in the market for primary residences. Findings also show a significant and negative demand effect for investors. Investors are shown to gain more bargaining power as the property size increases and the distance from the sea is longer.
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