The Hedonic Pricing Method is one of the principal assessment methods for evaluating
services and resources not normally exchanged on the market. However, the method is often unable
to account for the great variety of qualities in an urban context and faces scarce and heterogeneous
market data. This paper presents a model for the valuation of benefits generated by environmental and
urban improvement investments adopting a mixed hedonic-multi-attribute procedure for modeling a
value function of urban real estate values. The peculiarity of the model is that the independent
variables are aggregated indicators, which synthetize more detailed characteristics. Using the
expertise of real estate agents, all relevant variables influencing real estate values were weighted
and synthetized in a set of cardinal indicators. Next, market prices were used to calibrate a hedonic
function that transforms the cardinal indicators into real estate values. The valuation model was
integrated into a GIS for mapping the housing value, and its variation induced by urban investment.
The proposed model pointed out plausible and robust results, in particular, the possibility to use any
available information, such as location, position, technical and economic characteristics of buildings,
and organize it in a flexible and transparent way, and to keep evident the role of each characteristic
through the hierarchical structure of the model. The model was applied to the real estate market
of Venice to test the effects of the MOSE project (Electromechanical Experimental Module) for the
protection of Venice from high tides. The results of the application showed a relevant increase in real
estate values in the center of Venice, especially related to property in ground floor units, of about
1.4 billion
