|Ph.D Student||Salinger Eyal|
|Subject||The Economics of Conservation of Buildings with Cultural|
Heritage Value: The White City Tel Aviv
|Department||Department of Architecture and Town Planning||Supervisor||Professor Emeritus Daniel Shefer|
|Full Thesis text - in Hebrew|
Conservation of privately owned buildings is normally undertaken by the owners, either the private owners of the buildings, or entrepreneurs purchasing the building. The restrictions and requirements of conservation impose additional costs, which are given for private owners, and are embedded in the price entrepreneurs are paying for the buildings. Nevertheless, the benefits from conservation accrue not only to the estate of private owners, but also to the society at large.
The objectives of this study are: 1). to investigate the probability to conserve buildings designated for conservation by their private owners, compared to the probability to renovate other buildings (not designated for conservation). For this purpose, we use the binary choice Logistic Model; data for this model was collected from a door-to-door field survey; 2). to investigate the price of buildings designated for conservation compare to the price of other buildings, and whether their price is lower than their theoretical value, as if the restriction prohibiting to demolish them will be removed. For this purpose we use the Hedonic Price method.
We examine the case of the White City of Tel Aviv, declared by UNESCO as a World Heritage Site in 2003, due to its outstanding architectural ensemble representative of the early International Style in a new cultural context.
Our empirical results suggests that the probability to conserve is lower than the probability to renovate a building not designated for conservation, the extent of which depends on several other attributes of the building, and is on average 25% lower. Moreover, we found that as the ratio of number of owners to number of units increases the probability to conserve decreases.
We found evidence of a 13% decrease in the price of buildings designated for conservation, compare to buildings not designated for conservation, but only for buildings possessing common architectural value, where no sufficient incentives are given to cover for the increased cost of conservation. The price of buildings designated for conservation was also found to be lower than their theoretical value (when demolition is not prohibited), in 70% of the cases, and on average by 12.5%. We also found that apartments in buildings designated for conservation, enjoys a premium of 11%, but only if the building was already conserved. Moreover, an apartment located in an area with a high concentration of buildings designated for conservation enjoys a premium of 6% (either if the building is designated for conservation or not).