Impact of the land market regulation policy in ecuador

Abstract

The imperfection of the land market requires its regulation since the market cannot be freed while waiting for the price to be the balance between supply and demand. This study determines the impact of public policies oriented to regulate the land market, based on the analysis of land’s price in the city of Cuenca using three criteria: market value inconsistent with its value for social use; urbanized land taken from the sphere of circulation; the impact of speculative surpluses from access to property of well-served land. Its application shows that the surcharge on idle lots does not seem to have contributed to the occupation of central areas, on the contrary, the highest values of increased occupancy are recorded in the periphery. This situation contributes to sprawling in the city, with low densification values. It is evident that valuations are based on urban incomes and not on the improvement of their conditions of usevalue. The city of Cuenca shows signs that the peripheral soil is as inaccessible as the central one.