Town Planning Review

Lessons from Valencia: Separating infrastructure provision from land ownership

Town Planning Review (2007), 78, (1), 61–79.

Abstract

According to a 1994 law, 'urbanising agents', which can be either public land-development agencies or private companies selected by public procurement, are responsible for infrastructure provision in the region of Valencia. Landowners are obligated to collaborate with the urbanising agent, pay the costs of the infrastructure and cede land for public infrastructure and facilities. In return, they may build on the serviced plots. The law has increased building activities and the model has diffused to most other Spanish regions. This case shows that reducing the transaction costs of assembling land and divesting landowners of the option of waiting can breach stagnation in the production of serviced plots without compromising on financial issues.

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Author details

Gielen, Demetrio Muñoz

Korthals Altes, Willem