An assessment of the impacts of large-scale urban projects on land values: The case of Belo Horizonte, Brazil

Abstract

Large-scale urban projects (LSUPs) are capable of changing cities' structures and, consequently, have a potential deep impact on land values. However, to assume that the LSUP always uplift land values may dismiss too quickly some key aspects of these investments. This work uses a difference-in-differences model to assess the impacts of LSUPs on land values, implemented in Belo Horizonte, Brazil. Results indicate that the impacts of LSUPs vary according to the kind of project (transit, iconic building and retail) and property (residential, commercial and vacant land). Macroeconomic cycles, negative externalities, and projects location within the local urban structure are key to understand the impacts' dynamics.