Impacts of Exorbitant Land Price on Urban Form (A Case of Kageshwori Manohara Municipality)

Abstract

Urbanization has become unavoidable phenomenon observed all across the globe especially in developing countries. In Nepal, urbanization is consequence of centralization of major economic activities and population movement rather than outcome of a planning effort. Kathmandu Valley is epicenter of urbanization in Nepal which is also one of fastest growing urban agglomeration in South Asia. Migration and population boom resulting from urbanization has various impacts on the city structure. One of the most significant impacts of urbanization is on the price of land. The major problem in urban areas is the scarcity of land due to excess demand and speculation. As the supply of land is inelastic and the speculative demand for land breaks equilibrium of demand and supply leading to deviation of land prices from their basic value. Land is morphology and power which is largely the basis of town planning. In context of Nepal, land is most secured form of investment which can be inherited by offspring. Land fragmentation, unregulated urban land market, faulted land acquisition and compensation and incomprehensive zoning regulations characterize the current urban land. Due to negligible presence of government, speculative bubble is created in urban land market. Land prices in Kathmandu are increasing way beyond their potentiality; decreasing the affordability for the majority. This overpricing of land has severe effect in urban land form and urban land management. This study focuses on studying impact of exorbitant land prices on urban form. Land price logically has economic linkages, but it has been dealt with planning perspective in the study. The study area taken is Kageshwori Manohara Municipality which is rapidly urbanizing municipality where the land price has increased in even faster pace. To gain insight into the current scenario of study area, both qualitative and quantitative analytical methods were used using the data collected via interviews with key informants and questionnaire survey. Various indicators with respect to land price at ward level were analyzed. The major limitation of study is the consideration of informal land price for the analysis of land overpricing impact as there is huge difference between legal government price and market price. The study has drawn conclusion and recommendations regarding the urban form and land management for the municipality and for urban areas that are in the stage of rapid urbanization.