The regional effects of UNESCO heritage on property values: a synthetic control approach

This paper estimates the effect of UNESCO World Heritage Site designation on localproperty values by examining the 2009 inscription of the Dolomites. Usingmunicipality–semester panel data for the period 2005:2–2022:2 and a syntheticcontrol design, we estimate the impact on ordinary dwellings, luxury dwellings andcommercial properties. We find a persistent increase in residential property valuesthat grows steadily for more than a decade after inscription. The average estimatedeffect is €317.29/m2 for ordinary dwellings and €283.48/m2 for luxury dwellings(≈17.4% and ≈13.4% above the counterfactual, respectively). We find no statisticallysignificant effect for commercial properties.