Impact of the Green Axes Initiative on Rental Prices in Barcelona

This paper investigates the effects of the Green Axes (GA) urban redevelopment in Barcelona’s Eixample district on nearby apartment rental prices. Using empirical data from a major real estate platform, the study finds significant price increases for apartments within proximity to the newly created green spaces, most significantly at the 100m buffer. The results indicate a 15.14% rise in rents for apartments within 50m of the GA, 8.45% for those within 100m, and 3.98% for those within 500m. These increases are higher than those observed in previous studies of similar urban interventions, which might be explained by Barcelona’s high density and lack of green spaces. The extent of the impact is most likely found between 500m and 1000m, nonetheless, apartments being affected up to 2000m can’t be overruled. The study also identifies that lowerand mid-floor apartments experienced relatively larger rent increases compared to higher-floor units. However, the paper highlights concerns related to green gentrification, potentially leading to the displacement of middle- and low-income households. These findings suggest the need for specific policies that balance the benefits of urban greening with socially responsible measures to mitigate adverse effects on rent prices.