Depreciation of urban properties and demolition threshold

The Italian territory is characterized by the presence of numerous degraded buildings, which consequently undergo significant depreciation due to their age and obsolescence, resulting in a reduction of their attributed value. This phenomenon is observed in various areas of the country, both in large cities and small urban centers. Degraded properties pose an aesthetic problem as they contribute to a negative visual impact on the surrounding environment and may affect the quality of life of local communities. They also present socio-economic challenges considering the costs required to restore degraded buildings to normal conditions of use. This study analyzes the dynamics of the market value of a property by separating the contributions provided by the built structure and the land. The depreciation of the built structure is generated by a plurality of factors, all linked to the inevitable passage of time, which can influence or determine the end of the service life of the building, or its economic useful life. The phenomenon of urban rent (positive or negative) also acts on the latter, determined by external factors independent of the technological and physical characteristics of the building. Based on the logical interaction between the two phenomena - the depreciation of the built structure and the urban rent - this study attempts to define a relationship capable of suggesting the potential threshold for demolition.