An Analysis and Evaluation of the Impact of Large-Scale Architectural Projects on the City’s Economic Development, based on the Hedonic Analysis and Difference in Differences Method; the Case of Mashhad’s District 9

Contemporary cities are increasingly involved in cut-throat competition in globalisation, with architecture playing an increasingly important role in this competition, despite insufficient attention paid to this in Iranian cities. Experts believe that contemporary architecture can create a variety of grounds for economic growth for citizens and attracting tourists. The present study aims to study how large-scale architectural projects effect urban development, and is based on available data from two large-scale buildings in Mashhad. The main question is how large-scale architectural projects can be effective in the development of urban economics, and how to identify and measure the added values created by architectural projects. The approach is quantitative, and based on the hedonic model and Difference in Differences method as an effective tool to measure the economic impact of architectural projects, the spill-over effects of architectural projects have been measured and evaluated. Based on the findings of this study, constructing large-scale buildings has resulted in a 50 percent increase in the value of adjacent apartment units, and had an impact on the pricing pattern of apartments in their vicinity. This increase is inversely proportional to the distance from projects in a radius of up to 500 to 750 meters, causing an increase of 15 to 25 percent in affected property values.The results indicate significant upwards effects of the formation of large-scale architecture projects on local business prosperity, which can be seen as effective in the growth of the urban economy.