Abstract
This paper examines the consequences of the city planning law of 1998 in the particular case of Arroyo de la Encomienda and Valladolid. This law aimed to liberalise the land and housing market in order to decrease prices. This new legal scenario was one of the main causes that led developers to choose the most accessible land to build on, that is to say, land adjoining motorways; thus breaking up the compact city model and creating a more sprawling city; transforming the radial city in to one of concentric rings. Finally, even after two years of economic crisis, prices have come down very little and the excessive competition between developers led many to end in bankruptcy.
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