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Managing urban land markets in Africa: Valuation, performance and policy implication

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  • Weldesilassie, Alebel B.
  • B.Worku, Genanew

Abstract

Land management system is an underlying factor for rapid urbanization. The urban land lease policy of Ethiopia is considered the most influential policy, where leasing is through auction or negotiation. This study examines its implementation using land auction data in Addis Ababa, one of the fastest growing city in Sub Saharan African Countries. The result suggests a high divergence between land-auction guide and sale prices. The study found that the urban land market is not just driven by economic rationale, it is also determined by non-economic factors. The findings imply that the land market is not only exposed to speculations but also its urban land acquisition is majorly a secondary market, with no policy-ground.

Suggested Citation

  • Weldesilassie, Alebel B. & B.Worku, Genanew, 2022. "Managing urban land markets in Africa: Valuation, performance and policy implication," Land Use Policy, Elsevier, vol. 114(C).
    • Handle: RePEc:eee:lauspo:v:114:y:2022:i:c:s0264837721006293
    DOI: 10.1016/j.landusepol.2021.105906
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    References listed on IDEAS

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    1. Peterson, George E., 2006. "Land leasing and land sale as an infrastructure-financing option," Policy Research Working Paper Series 4043, The World Bank.
    2. Deininger, Klaus & Jin, Songqing, 2006. "Tenure security and land-related investment: Evidence from Ethiopia," European Economic Review, Elsevier, vol. 50(5), pages 1245-1277, July.
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    9. Mark G. Dotzour & Everard Moorhead & Daniel T. Winkler, 1998. "The Impact of Auctions on Residential Sales Prices in New Zealand," Journal of Real Estate Research, American Real Estate Society, vol. 16(1), pages 57-72.
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    More about this item

    Keywords

    Urban land lease policy; Ethiopia (Africa); Urban land policy; Land auction; Land premium; Least-squares estimation;
    All these keywords.

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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