Kaavoituksen vaikutukset kiinteistöjen arvoihin ja maankäyttöpoliittisten keinojen muutosten vaikutusarviointi

Translated title of the contribution: Impact of planning decisions on property values and evaluation of the effects of changes in land use regulation

Heidi Falkenbach, Pauliina Krigsholm, Hanna Kuivalainen, Babak Firoozi Fooladi, Sinikukka Pyykkönen

Research output: Book/ReportCommissioned report

Abstract

Land use regulation and planning decisions impact property values. This publication
creates an overview of this phenomenon in Finland, focusing more specifically on the
case of land value changes created by planned residential development.
First, we introduce a framework that clarifies the connections between planning
decisions and property values. A bipartite empirical analysis summarizes the land value
capturing practices. Analysis of detailed planning volumes of municipalities identifies
those municipalities where increases in land value due to planning and land value
capture, is expected to be significant. Land value capturing practices were deepened by
interviewing these municipalities regarding the practices in municipal land acquisitions
and land use agreements. Finally, the impact evaluation illustrates how existing
information on land value capture and land policies can be used to evaluate effects and
limitations of legislative changes. The findings reinforce the view that the current public data environment does not
allow rigorous examination of planning-induced land value changes and related value
capturing practices, nor does it support the impact evaluation of legislative changes. In
support of this, more information on the municipal costs of plan implementation, the
land use agreement principles, and land values, their changes and value capture are
needed.
Translated title of the contributionImpact of planning decisions on property values and evaluation of the effects of changes in land use regulation
Original languageFinnish
PublisherPrime Minister's Office
Number of pages75
ISBN (Electronic)978-952-383-083-7
Publication statusPublished - 18 Dec 2023
MoE publication typeD4 Published development or research report or study

Publication series

NameValtioneuvoston selvitys- ja tutkimustoiminnan julkaisusarja
No.64
Volume2023
ISSN (Electronic)2342-6799

Keywords

  • land policy
  • real property valuation
  • land value
  • legislation
  • preparation of legislation

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