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

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.