Spatial planning and segmentation of the land market: The case of the Netherlands

Or Levkovich, Jan Rouwendal, Lars Brugman

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Zoning restrictions often exclusively permit one or a few particular types of land use. If the tightness of restrictions differs between land uses, the result may be that the market for land splits into segments referring to particular uses, because the arbitrage mechanism between various land use types is turned off. We provide evidence of such a segmentation of the Dutch land market into three compartments: agricultural, commercial, and residential use. We analyze transactions of ready-to-be developed land and find that residential land is much more expensive than commercial land. We also find that agricultural land is much cheaper than residential and commercial land.

Original languageEnglish
Pages (from-to)137-154
Number of pages18
JournalLand Economics
Volume94
Issue number1
DOIs
Publication statusPublished - 1 Feb 2018

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