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An Evaluation of the Impact of Density Regulation on Land Markets in Mumbai


  • Ramakrishna Nallathiga

    () (Programme Manager, Bombay First (Bombay City Policy Research Foundation), Fourth Floor, Y B Chavan Centre, Nariman Point, Mumbai 400021, INDIA)


TThe economic justification for regulation of land markets through land use controls and other policy instruments is a well-studied subject in developed countries. However, in the recent years, there has been an increasing realisation that the regulation of urban land use and its development has been resulting in some undesirable impacts, in particularly, on the operation of land or property markets, which result in increases in land prices and a reduction in the welfare of people. This paper presents an empirical evaluation of the density regulation impact on land prices in Mumbai city. The study finds that the impact of density regulation is highest on the already highly demanded space in the CBD; also, the impact is significant in the suburbs. The study results, however, need to be interpreted more carefully in the light of other land use and housing regulations already in operation.

Suggested Citation

  • Ramakrishna Nallathiga, 2006. "An Evaluation of the Impact of Density Regulation on Land Markets in Mumbai," International Real Estate Review, Asian Real Estate Society, vol. 9(1), pages 132-152.
  • Handle: RePEc:ire:issued:v:09:n:01:2006:p:132-152

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    References listed on IDEAS

    1. Sarah Monk & Christine M. E. Whitehead, 1999. "Evaluating the Economic Impact of Planning Controls in the United Kingdom: Some Implications for Housing," Land Economics, University of Wisconsin Press, vol. 75(1), pages 74-93.
    2. Thorson, James A., 1997. "The Effect of Zoning on Housing Construction," Journal of Housing Economics, Elsevier, vol. 6(1), pages 81-91, March.
    3. Henry O. Pollakowski & Susan M. Wachter, 1990. "The Effects of Land-Use Constraints on Housing Prices," Land Economics, University of Wisconsin Press, vol. 66(3), pages 315-324.
    4. David E. Mills, 1989. "Is Zoning a Negative-Sum Game?," Land Economics, University of Wisconsin Press, vol. 65(1), pages 1-12.
    5. Mayer, Christopher J. & Somerville, C. Tsuriel, 2000. "Land use regulation and new construction," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 639-662, December.
    6. Mayo, Stephen & Sheppard, Stephen, 1996. "Housing Supply under Rapid Economic Growth and Varying Regulatory Stringency: An International Comparison," Journal of Housing Economics, Elsevier, vol. 5(3), pages 274-289, September.
    7. S Monk & B J Pearce & C M E Whitehead, 1996. "Land-Use Planning, Land Supply, and House Prices," Environment and Planning A, , vol. 28(3), pages 495-511, March.
    8. S Monk & B J Pearce & C M E Whitehead, 1996. "Land-use planning, land supply, and house prices," Environment and Planning A, Pion Ltd, London, vol. 28(3), pages 495-511, March.
    9. Green, Richard K., 1999. "Land Use Regulation and the Price of Housing in a Suburban Wisconsin County," Journal of Housing Economics, Elsevier, vol. 8(2), pages 144-159, June.
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    Cited by:

    1. Marin V. Geshkov & Joseph S. DeSalvo, 2012. "The Effect Of Land-Use Controls On The Spatial Size Of U.S. Urbanized Areas," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 648-675, October.

    More about this item


    l and use regulation; density regulation; land market and land prices;

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services


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