An empirical case study on the effect of Al Aweer sewage plant odours on housing prices in Dubai’s International City

Purpose This study aims to investigate the impact of proximity to the Al Aweer sewage treatment plant (STP) on residential property values in Dubai’s International City. It hypothesises that properties closer to the plant experience greater value diminution due to odour emissions. Design/methodology/approach The research uses traditional hedonic pricing models to analyse the impact of odour emissions on property values. Advanced machine learning techniques and spatial econometric models were considered but deemed less appropriate due to the small, homogeneous data set. The study uses a comprehensive data set of residential flats within International City. Findings The results indicate a significant negative impact of odour emissions on property values. Properties closer to the STP show a marked decrease in value, highlighting the importance of environmental factors in real estate valuation. Originality/value This study is unique in the United Arab Emirates, focusing on the environmental issue of odour emissions in a stigmatised area. It provides valuable insights for policymakers and real estate professionals, emphasising the need for accurate environmental impact assessments in property valuation.