Impact assessing of socioeconomic stratification in the land value formation in Bogotá D.C.

Abstract

The conditions under which the class structure exists in Colombia, has promoted the  implementation of public policies such as socioeconomic stratification, which aims to ensure the provision of public services, through a system of differential charges. This means that population of highest payment capacity to subsidize the population of lower payment capacity. This study aimed to evaluate the effects of socioeconomic stratification over land prices, and determine their influence after controlling urban quality, socioeconomic status, and accessibility.

Taking as a case study the city of Bogota, it was built two hedonic pricing models where the dependent variables were the cadastral value and the market value of the land. These models were build using information primarily from the Unidad Administrativa Especial del Catastro Distrital (UAECD), Multipurpose Survey Bogota 2011, 2005 Census conducted by DANE, and studies on the land value of the Lonja Inmobiliaria de Bogotá.

The conclusion was that socioeconomic stratification is the attribute that best explains land value, showing that this condition has been internalized in terms of relationships and social behaviors, acting as territorial brand which is reflected in the willingness to pay of people in an area specified independent of socioeconomic status, urban conditions and environmental and accessibility.