5.4. Urban Land Value

5.1.4 From Land Price to Urban Value

For decades, land price has served as the primary indicator for evaluating urban land. Governments, investors, planners, and valuation professionals have traditionally relied on market prices to assess the economic significance of land parcels. While market price provides an observable measure of exchange value, it does not fully represent the broader processes through which urban value is created and transformed. [13–16]

Urban value extends beyond market transactions. It emerges from the continuous interaction of transportation infrastructure, accessibility, land-use patterns, economic agglomeration, public investment, environmental quality, institutional policies, technological innovation, and social dynamics. These interacting factors collectively shape the attractiveness and development potential of urban space, even before their effects are fully reflected in market prices. [4–8,15–18]

[16] Porter, M. E. (1995). The Competitive Advantage of the Inner City.

[17] Batty, M. (2013). The New Science of Cities.

[18] OECD (2015). The Metropolitan Century