Impact of regulations on the prices of undeveloped land: case study Bogota

Abstract

Regulations in urban matters in Latin America create benefits for landowners in the form of higher returns which tend to be well received, especially by those who have land where they have concentrated more benefits, for example, when the zoning plans authorize urbanization in an area but in limit in another, or when building codes stimulates a type of housing and forgive the provision of infrastructure. However, urban regulations that impose burdens on urbanization, as the provision of main roads, dedication of land for environmental purposes, including housing, the readjustment of land with neighbors or the payment of special charges, generates a strong resistance. In this context, the article deals with the principle laid down in Act 388 of 1997 equitable distribution of burdens and benefits, to present preliminary results of research sponsored by the Lincoln Institute of Land Policy, which seeks to measure how the benefits and regulatory burdens are exerting recently established an impact on the prices of undeveloped land.