Eco&Stat n°07-2026 - Improving accessibility indicators in hedonic models of property prices: a comparative analysis of journey time and distance

Property pricing has long been a complex issue, influenced by a multitude of factors such as location, floor area, available amenities and the socio-economic characteristics of the neighbourhood. Among these factors, the location of a property plays a significant role in determining its price. In the context of the flat price index, adjusting for property quality is essential: the aim is to measure a ‘pure’ change in prices, independent of variations in characteristics between the properties observed from one quarter to the next. Generally speaking, prices tend to fall the further one moves away from Luxembourg City, which means that distance plays a significant role in property valuation. However, this measure may prove insufficient to reflect actual accessibility conditions. Indeed, two properties situated at an equivalent distance from the city centre may have very different levels of attractiveness depending on transport infrastructure, intermodal connections or journey times. This is why it seems appropriate to consider incorporating journey time into the hedonic model currently used to calculate sales price statistics.