Land Regulations and Land Urban Price in the Bogotá City

Abstract

This document addresses the relationship between land prices and land regulations. Urban control constitutes the social recognition in the territory, the interactions of the different social classes in the occupation of the land, and its adequate reflection in the markets. The Bid Rent theory explains the urban configuration through demand, rent, and land prices; the norm only legitimizes the appropriation of the surplus. The convergence of norm and society modulates the cost of urban land, which gives strength to the norm. The structure of rents in Bogotá responds to the postulates of Bid Rent in a way that implies social inequalities and the low capacity of the city's administration to control market forces. The empirical result indicates that the urban norm does not affect land prices; that is, the market dominates city planning.