DOI: 10.3390/land15071121 ISSN: 2073-445X

Contaminated Sites and Real Estate Values: Insights from the Literature

Pierluigi Morano, Felicia Di Liddo, Francesca Fariello

The present contribution provides a systematic review of the international scientific literature on the relationship between contaminated sites and real estate market dynamics. The objective is to investigate whether and to what extent the presence of environmental risk sources—both active or decommissioned—affects the value of surrounding residential properties. In particular, the review is focused on an examination of the methods commonly used in relevant studies to measure, interpret, and represent this impact across different geographical contexts, identifying the main magnitude ranges found in the selected contributions. Several studies consistently confirm a statistically significant negative relationship between proximity to polluting sites and real estate values, although the relevance of this effect varies considerably across case studies. Other records highlight non-notable impacts or even positive effects following remediation and redevelopment interventions. The evidence suggests that this relationship is complex and influenced by factors such as site type, contamination severity, specificities of the local urban context and community perception. Moreover, the findings underscore regional variations in the extent and nature of price impacts, reflecting diverse regulatory frameworks and remediation efforts. The outcomes of the literature review provide a robust foundation for developing more effective evaluation tools able to support decision-making processes, enabling policymakers, planners, and investors to promote sustainable urban regeneration, improve environmental justice, and reduce spatial inequalities. Ultimately, this study highlights the critical need for integrating environmental, social, and economic dimensions to fully capture the multifaceted effects of contaminated sites on property markets, thereby orienting more informed and equitable urban development strategies worldwide.

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