Are Cave Houses a Sustainable Real Estate Alternative?

Abstract

The high level of energy consumption of buildings has outlined the need for more sustainable and environmentally friendly constructions, which has led to cave houses now being more highly valued. This study looks to study whether sustainable constructions, such as cave houses, have an economic impact with regard to other construction types in the real estate market in Granada. Moreover, this study looks to determine whether energy rating is a relevant characteristic for the price of cave houses and whether the price determinants vary according to whether the house in question is a cave house or a single-family one. To develop this study, a final sample of 61,573 properties was used. A regression model estimated by ordinary least squares was performed. This study shows that cave houses are being marketed at higher prices than single-family houses. It was noted that energy rating is not an important characteristic for estimating the price of a cave house. Finally, in this type of housing, refrigeration equipment is not one of the determining characteristics for the price.

Keywords

• cave houses
• hedonic regression model
• house sale prices
• price determinants
• energy rating