The Effects of Land Policy on Urban Land Prices in Bogotá

The object of this research is to verify how land prices are affected by urban policies implemented in Bogotá since 2004. Bogotá has been the leading city in Colombia in applying national urban land policies and instruments such as the levy on land value increments, charges associated with land use, and the equitable distribution of costs and benefits accruing to the private and public sectors in new urbanization projects. The price of land in the city has been affected by these policies. Preliminary data show that the speculative rise in land prices in peripheral areas has stopped and the new costs have been borne by landowners, since developers discount these costs in purchase prices. More can be learned about the effect of land policies on land prices in consolidated zones where the levy on land value increments is applied. This levy is discounted in negotiations between land owners and developers, and its cost is not passed along to the final purchaser.