The Impact of a New Subway Line on Property Values in Helsinki Metropolitan Area

The planning process of a new subway line started in 2007 in the Helsinki metropolitan area. The construction works were started in 2009 and the new subway line is planned to be opened by the end of 2015. As a result of the new subway line the travelling time to the city center decreases. The prediction of economic theory would be that housing prices near the subway stations would increase as a result of having better access and lower cost of traveling within the city. The empirical evidence on these predictions is however missing, at least in Finland.