A Housing Society Prestige Perspective of Greenness and Socio-Economic Amenities: Exploring the Links with Pricing Premium Using Artificial Intelligence

Does the construction of green spaces, parks, greenbelts and socio-economic amenities helps in creating reasonable identity and prestige before customers which further nurtures premium and pricing advantages in return? For this purpose, we construct prestige based on composite pollution index, greenness score, and socio-economic amenities which further validated through artificial intelligence using Python. We test the composite pollution index, greenness and socio-economic amenities in hedonic model using OLS and SFA separately. We find out that greenness score, and socio-economic amenities have significant impact on value and cause premium and pricing advantages. Pollution index cause underpricing and pricing disadvantages. Furthermore, these amenities and preferences have vital role in constructing identity and prestige before customers. The study’s findings have practical implications for investors interested in the real estate markets of emerging and developing economies where urban climate is serious concern. JEL Codes : R20, R30, R39