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Urban Land Monetization-Driven Land Use Orientations: An Insight from Land Lease Prices in Addis Ababa

Author

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  • Amanuel Weldegebriel

    (Department of Earth and Environmental Sciences, University of Leuven, Celestijnenlaan 200E-2411, 3001 Leuven, Belgium
    Center for Environment and Development, College of Development Studies, Addis Ababa University, Addis Ababa P.O. Box 1176, Ethiopia)

  • Engdawork Assefa

    (Center for Environment and Development, College of Development Studies, Addis Ababa University, Addis Ababa P.O. Box 1176, Ethiopia)

  • Meron Tekalign

    (Center for Environmental Sciences, College of Natural and Computational Sciences, Addis Ababa University, Addis Ababa P.O. Box 1176, Ethiopia)

  • Anton Van Rompaey

    (Department of Earth and Environmental Sciences, University of Leuven, Celestijnenlaan 200E-2411, 3001 Leuven, Belgium)

Abstract

Urban land leasing is a land monetization strategy that was introduced in 1991 by the contemporary regime. Since then, urban center slum demolitions and their replacement by high-end commercial buildings and urban peripheral low-cost residential condominium expansions have been common occurrences in Addis Ababa. Land rentiers quote extreme land prices at the city center and relatively low prices towards the periphery. Therefore, it has been hypothesized that urban land supply and land prices are determinant factors for urban land use orientations, which have pushed low-end groups towards the periphery. Therefore, based on a lens of land rent theory, 1524 land lease prices and 1038 randomly selected land parcels using Google Earth were used to evaluate locational trends in land prices and land use orientations, respectively. This study revealed that there are significant variabilities between government benchmark land prices and actual quoted land prices. Because of the high rent gaps at the city center, significant land price quotations were recorded, and this overlaps with the urban center slum demolitions and slum resident resettlements at low-cost residential condominiums in the urban periphery. In the first 5 km from the urban economic center, land prices show a declining trend towards the periphery. The central business district is dominated by slums partially under demolition and high-end commercial buildings, while the periphery is dominated by high-rise low-cost residential condominiums. Therefore, the distance from the city center was found to be an explanatory factor of urban land prices. The contributions of other urban utilities to land prices, such as access to transportation routes, could be a future research area.

Suggested Citation

  • Amanuel Weldegebriel & Engdawork Assefa & Meron Tekalign & Anton Van Rompaey, 2022. "Urban Land Monetization-Driven Land Use Orientations: An Insight from Land Lease Prices in Addis Ababa," Land, MDPI, vol. 11(6), pages 1-21, May.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:6:p:796-:d:826161
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    References listed on IDEAS

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