Research On Effect Of Subway On Commercial Real Estate Value In Xi'an

In order to promote urban development towards comprehensiveness, harmoniousness and sustainability,the subways have been building since 2008 in Xi'an. The subways don't only ease the traffic pressure greatly,but also they bring great impact on commercial real estate in Xi'an.Commercial real estate ought to be built in the region where a number of people reside and traffic conditions are convenient.The subways construction will change the location condition of commercial real estates which are built along the subway,therefore the value of commercial real estate will increase.Government departments need a practical theory to provide the decision-making references for urban management,and commercial real estate companies also need this theory which guides their investment to achieve maximum commercial benefits.In this context,the research on commercial real estate under subway has important theoretical and practical value.Firstly,the main factors importing on commercial real estate value are analyzed and summarized based on the results of the recent analyses home and abroad.And then, the conclusion that location factor is a key factor that subway has impact on commercial real estate value is determined by describing and using land price formed theory and land location theory,Finally,the mechanism that subway effects commercial real estate value is concluded.The subways planning in Xi'an and the status quo of commercial real estate in Xi'an are analyzed and sub-factors of commercial real estate location factor are determined.Based on analyses and comparison on existing real estate increment model, according to commercial real own characteristics,the classical exchange theory is modified.The paper combine exchange theory,the generalized traffic cost theory and time value of capital,and establish the mathematical model which is adequate for calculation of commercial real estate value-added.Taking the subway line 1 and line 2 in Xi'an as an example,the value-added space of commercial real estate under subway construction is calculated.Finally,the developing trends of commercial real estate under subways in Xi'an are predicted according to the results of qualitative analysis and quantitative calculation.The conclusions provide decision-making references for the government and real estate companies.