Understanding value changes in the urban development process and the impact of municipal planning

Abstract

An urban development process causes spatial changes and changes of associated property rights, and, as a consequence, the value of the property will change as well. This linkage between spatial changes, changes of associated property rights and property values represents an important element in understanding how property values change during the urban development process and the role of municipal planning as a value changing factor in the urban development process. The objective of this paper is to analyse how property values change throughout the urban development process, and further, to discuss the explanations for these changes by comprising the impact of municipal land-use planning. This paper presents a conceptual model showing how property values in urban development areas change during the urban development process and information about the extent to which value increases. The model is directed towards countries with a regulated land use, exemplified by Denmark.