Abstract. This paper is the first to provide a micro-level analysis of the impact of intercity rail connections on property prices. We use the variation in mainline accessibility provided by the reorganization of the rail system in post-unification Berlin to isolate accessibility effects from correlated individual location effects. Evidence does not support the existence of localized effects on location productivity and household utility. While the city, since unification, has undergone significant changes in its spatial structure, these effects cannot be attributed to the new transport concept. Our findings question the justification for committing substantial public funds to downtown rail redevelopment projects.