Final Public Report: Complex Land Markets in Uganda and Somaliland

Page 1

COMPLEX LAND MARKETS I N

UGANDA AND

SOMALI LAND

9640334609879 :NBSI


Complex land markets in Uganda and Somaliland Public Facing Report ISBN: 9789064330469 Date of publication: 01.04.2020 Place of publication: Institute for Housing and Urban Development Studies, Erasmus University Rotterdam

Key words: Spatial inequality, complex land markets, urbanisation, spatial justice

DISCLAIMER This document is an output from a project funded by the UK Department for International Development (DFID) through the Research for Evidence Division (RED) for the benefit of developing countries. This material has been funded by UK aid from the UK government; however the views expressed do not necessarily reflect the UK government’s official policies.


S P AT I AL I NE QUAL I T Y T I ME S

OF

I N

URB AN

T RANS I T I ON

EXECUTIVE SUMMARY Urbanisation is the result of the active

in East African cities, coupled with a

engagement

of

scarcity of planning resources, limits the

stakeholders, both formal and informal,

value of formal institutions in steering

who each play a role in organizing the

urban

flows within the city as a system. Central to

highlighting the importance of a holistic

that engagement is the role played by land

understanding of both formal and informal

markets in determining access to urban

institutions.

space.

interrelated

from

Emergent,

markets

a

multitude

uncontrolled

frequently

support

land rapid,

with

change

and

We

expansion,

understand

institutional

specific

thus

reference

these

arrangements, to

market

unplanned expansion in which substantial

transactions in urban land, as ‘complex

slum

land markets’ (CLM).

areas

are

characterised

by

the

scarcity of urban services. Which in turn impacts on economic productivity and

In our research, we investigated complex

human development. Research has often

land markets and urban transition in four

focused on the impact of formal and

East African cities in two countries –

informal institutions on those processes,

Kampala

but little research has focused on how

Hargeysa and Berbera in Somaliland.

and

Arua

in

Uganda

and

those institutions interact and overlap. The dynamic and rapid nature of urbanisation

1


This report synthesizes the main issues,

Taken together, the report can identify

findings and recommendations from the

some of the ways in which land markets

analysis

relate

of

our

research

on

“Spatial

Inequalities in Times of Urban Transitions” that was executed from December 2017 to

to

spatial

justice.

However,

obstructive implications cannot be ruled out.

September 2019. Based on a systemic view of land markets and integrated with a

The aim of this report is to suggest forms of

political settlement analysis, this report

support to assist policy development and

helps

eventually

policy interventions that can enable East

overcoming constraints to the ways that

African cities to offer greater opportunities

land markets can contribute to spatial

to poor and marginalised urban groups. It

justice.

presents findings on overarching issues in

in

understanding

and

each city from all the research components Our analysis builds on three key points:

and associated policy recommendations.

Firstly, that the four cities are different in

terms of the land market systems and

Although we can see that markets ‘work’

hence,

for some, they do not work for all. Therefore

political

their

relationship

settlements

to

(national)

work

through

our

recommendations

centre

around

different processes. This means that the

increasing transparency of the market. This

possibilities for supportive interventions

is

need to be considered on a city-by-city

planning

basis.

monitoring the spatial development trends

done

through; and

knowledge

policy

creation,

measures

and

and dynamics. These categories support Secondly, actors, transactions or property

and feed into each other by providing

rights

roles

accurate data on land transactions. This

sub-

evidence can be used to improve the

systems of land markets. This means that

design of pro-poor housing/land policies.

any intervention can have both progressive

Furthermore, they increase visibility (the

and regressive implications, and this can

first

simultaneously occur at different scales.

tackling

Consequently,

acknowledging

can

simultaneously

have across

multiple different

it is very difficult to relate

step

in

addressing

information

injustices)

by

asymmetries

and

diversity

of

the

land markets to encompassing notions of

land/housing transactions. By making the

spatial justice.

markets

more

injustices Thirdly, contrary to popular oppinion that

assumptions

markets

inequalities.

are

autonomous

economic

by

transparent

we

addressing

underlying

which

tackle

perpetuate

phenomena beyond the operations and control of the state, state actors are deeply engaged in land markets. They are also deeply intertwined with ‘informal’ land markets.

2


IN THIS REPORT 1

EXECUTIVE SUMMARY

4

BACKGROUND AND LOCATION

5

RESEARCH PURPOSE AND HYPOTHESIS

6

APPLIED METHODS

7

KEY CONTEXTUAL ISSUES

9

OVERALL FINDINGS AND RECCOMENDATIONS

10

Multiple types of land transactions

11

Markets ‘work’

12

Capturing value from land used as an investment

13

Markets are socially embedded

14

Spatial structure of cities

16

Value of residential land

18

OVERARCHING RECOMMENDATIONS

19

CONCLUSIONS

21

TEAM

3


BACKGROUND AND LOCATION East Africa is experiencing urban transition

This research was conducted over four

in its social, spatial and economic spheres.

cities. Two cities in Uganda; Kampala and

The land and land markets have been

Arua,

influenced by this urban transition, and

Hargeysa and Berbera. These locations

also by population growth, urbanisation

were chosen as they help to give an

and housing and infrastructure provision.

overview of the interesting and rapid

The provision of housing and infrastructure

urban transition currently occurring in East

directly relates to land tenure but also the way land transactions occur. This is set

and

two

cities

in

Somaliland;

Africa

against a background in which land is both a scarce commodity and in high demand.

4


RESEARCH PURPOSE AND HYPOTHESIS The objectives of this research are to

which institutions influence inequality and

understand and explain the complex land

how CLM impacts on spatial justice.

markets (CLM) in each of the selected cities, and to provide policy recommen-

We

dations

negative impacts on spatial justice, which

regarding land governance and

equitable, sustainable urban development.

started

from

the

hypothesis

that

are produced by transitory institutions, can best be addressed by improving these

This research identified how the urban

institutions

themselves.

transition in four East African cities works

interventions

as, and within, integrated systems within a

institutionalisation of CLM as the entry

given political economy in which CLM play

point for changing conditions.

into

We

understand

the

ongoing

a key role. These combine the influence of informal

practices

with

partially

The research question which guided this

dysfunctional land governance institutions.

work is: ‘How do complex land markets

The research also investigated ways in

influence spatial justice within the current urban transition in East Africa?’

5


APPLIED METHODS A number of interrelated research methods were used throughout the study. Data collection and analysis was done through:

Contextual analysis → literature review,

Land transaction biography → 54 in-depth

consultation of legal and other secondary

interviews were conducted with buyers

data

and sellers to understand the experience of

sources

on

the

history,

current

economic and political situation and status

transacting in land markets.

and conditions of land markets in the four Comparative

cities, two countries.

comparing Spatial

assessment

GIS

mapping

identifying spatial patterns of the urban transition,

housing

conditions

Analysis

findings

cross-cities

(inter-city,

intra-

national, overall) to establish similarities and differences.

and Findings on spatial justice → indications

morphological analysis of the cities.

on correlation and causal relations of land Land

market

interviews

analysis

conducted

with

44

in-depth

transactions and the level of distributive

institutional

and procedural justice experienced by the

land market actors.

individual household.

Household survey → approximately 8,000

households were interviewed in order to understand their engagement in complex land markets, how spatial qualities are distributed, and the household’s choice of residential location.

CONTEXTUAL ANALYSIS

HOUSEHOLD SURVEY COMPARATIVE ANALYSIS

SPATIAL ASSESSMENT LAND MARKET ANALYSIS

FINDINGS ON SPATIAL LAND

JUSTICE

TRANSACTION BIOGRAPHY

6


KEY CONTEXTUAL ISSUES The cities under research are experiencing

over 60 km 2 of land was found to have

rapid urbanisation and population growth,

been

which influence land market activity, drive

street blocks or plots marked out and

land transactions, urban expansion, and

enclosed with low boundary walls. The

infrastructure development. The increase in

regular form of this extension implies that

population

rapid

the state (or some other socio-cultural

urbanisation has also resulted in land

institution) is cognisant and engaged in

fragmentation

different ways. The same may be true of

growth

coupled

to

meet

with

the

growing

‘prepared’

for

development,

with

demand for land. It has resulted in the

Ugandan

emergence of a multiple layered land

organic

market emanating from pluralistic legal

topography in these cities, particularly on

tenure

inter-

the urban periphery, gives the impression

relationships between statutorily regulated

that extension and expansion was less

and customary authority regulated land.

‘coordinated’.

This

systems,

results

procedures

with

in

that

complex

socially not

cities,

though

pattern

of

the

irregular,

development

and

constructed

only

govern

the

In the secondary cities of Arua and Berbera,

process of acquisition but also produce

although both local governments hold

both equality and inequality regarding

some tight regulation of land markets,

access to land.

informal

and

covert

land

acquisition

processes are emergent. This also creates The

expansion

is

an

of

speculation as these cities exhibit potential

increased land consumption. This can be

for future development and expansion. The

largely explained by: i) the desire to own

imminent expansion of Arua’s municipal

land and that people prefer (or can afford

boundary

only) to buy vacant unserviced land to

development and city growth which has

build houses on the urban periphery; ii)

increased interest in property with 30% of

buying land and constructing houses as an

landowners having acquired property in

investment that could be rented out; iii)

the past 5 years. Additionally, to support

those migrating to the city from elsewhere

the

may

speculation is increasing, our results show

evidenced

find

of

through

the

the the

four

cities

dynamics

urban

periphery

geographically convenient.

enabling

has

widely

environment

influenced

held

for

land

infrastructure

perception

that

land

that 23% of current land owners in Berbera and 30% in Arua have acquired vacant land

Evidence of land speculation was also

without developing it.

found in all four study cities. The scale and intensity of this is clearly reflected in the

The

extensive demarcation of land in Hargeysa

fragmentation of cities is evidenced over

and Berbera driven either by diasporic

the past decade. This is prominently in the

investment or locals looking for a safe

primary cities of Kampala and Hargeysa

place to invest their money. In Hargeysa,

through the subdivision of plots/land

influence

of

land

markets

on

7


parcels

to

growing

land. Land ownership appears as a good

of

land

investment, particularly in Uganda where a

market activity. The intensification of land

significant number of landowners (more

use may in part be driven by out-dated,

than 80% in both cities) believe the value

unresponsive regulations. For example, in

of their property has increased two-fold. In

Kampala large minimum plot sizes for

Somaliland, more than half of landowners

residential use required by city planning

are of the opinion that the value (price) of

regulations lend themselves towards lower

land has doubled since the initial purchase.

density, villa-style housing. This pushed

In addition, given the extensive rates of

many to seek other forms of housing

tenancy prevalent across all four cities, it is

resulting in the sub-division of larger plots

conceivable that a fair proportion of land

over time to accommodate many smaller

transactions

plots,

rental housing. The prevalence of this form

population

with

accommodate and

various

housing

a

forms

built

at

a

higher

density.

relate

to

investments

for

of accessing land could reflect that land markets are exclusionary - putting land

A discernible driver of land market activity

ownership beyond the reach of many

in all cities is speculative investment in

people.

8


OVERALL FINDINGS

AND

RECOMMENDATIONS In the absence of state capacity, land

interventions have to be designed slowly

markets

important

and incrementally in order to incentivise

structuring force of East African cities. Land

changed behaviour among actors in the

markets are also related to the problems of

land sector.

appear

as

an

fragmentation and inefficient land use, congestion,

unequal

distribution

of

We identify a series of findings that build

resources and infrastructure, evident in

up to an overarching analysis of land

African cities.

markets in the four study cities and set out a number of key policy recommendations.

In the light of economic rhetoric that

We also identify what actions specific

market operations should be only lightly

actors may undertake to deliver on these

regulated by the state, land market

recommendations.

9


MULTIPLE TYPES OF LAND TRANSACTIONS In order to understand the actual dynamics

markets.

shaping the four cities, we should look at

transactions within land markets are i)

land

financial

form of tenure, ii) ‘social’ factors such as

logic of demand and supply. An expanded

religion (Hargeysa and Berbera), nationality

understanding

(Kampala and Arua), and ethnicity (Arua),

transactions

beyond

of

the

land

transactions

Key

elements

distinguishing

of

and iii) current and potential land use. Use

dynamics that can be accommodated by,

of land for self-built housing offers a

and

particular low valuation of land that people

facilitates

an

analysis

incorporated

of

a

series

into,

market

will engage in the land market for, as the

mechanisms.

process is likely to be conducted over Land markets are localised systems and

many years. Use of land for creating rental

with a diverse range of transactions within

opportunities, introduces a different logic

each

to the transaction process in comparison

city.

This

diversity

goes

beyond

conventional distinctions of in/formal land

with other surrounding land values.

RECOMMENDATION: IT IS CRUCIAL TO ACKNOWLEDGE THE DIVERSITY OF LAND/HOUSING TRANSACTIONS AND TENURE FORMS WITHIN EACH CITY, AS A WAY TO SUPPORT A WIDER RANGE OF LAND/HOUSING ACCESS MODALITIES FOR THE URBAN POOR.

The lack of control of state authorities of

impacts of different actors within land

the urban land market in Kampala, Arua

markets and to better understand the

and Hargeysa manifests itself in the lack of

valuation of land and housing (ownership

information about land transactions (due

and rental) for different land uses.

to inadequate systems and/or fraudulent practices) and in the inability of public

Advisory

organisations,

universities

and

institutions to better guide the land market

donors can contribute to improving data

for public benefit.

on land transactions processes and actors, and to build awareness and capacities

In order to promote more transparent local

within the government to design land/

markets, it is important to develop an in-

housing policies for the poor.

depth understanding of the role and

10


MARKETS ‘WORK’

Land markets seem to 'work' due to the

in themselves deliver few public benefits.

high

High

Investment in public infrastructure by the

percentages of respondents in each city

state will likely reward those who own land

reported that they found it easy to obtain

and who benefit from the appreciation in

property and to find a place to stay. With

the value of the land they hold, captured as

multiple land markets, we find the ability

economic rent.

volume

of

transactions.

to transact is tailored to suit the financial/ social means of each household. Thus, it

It

emerges that there are certain trade-offs

different

within

economic

markets

that

households

must

make between benefits and costs.

is

difficult

for

land

buyers

markets

classes

and

to

compare

across their

socio-

respective

offers and outcomes. If they could, they might

see

the

injustice

of

relatively

Although at a household-level there may

cheaper land, that is fully serviced, reserved

be some acceptance that land markets

for higher socio-economic groups, whilst

work, at the neighbourhood and city-level

the

the aggregate outcome of land markets

smaller parcels and lesser services.

poor

pay

comparatively

more

for

RECOMMENDATION: TACKLE INFORMATION ASYMMETRIES IN DIFFERENT TYPES OF LAND TRANSACTIONS

Increasing the visibility of the costs and

National governments and local authorities

benefits of various forms of market activity

can help promote more transparent local

across multiple markets would be a first

markets by developing more robust and

step to addressing injustices that arise

reliable land transaction data that is freely

from land transactions. For this, individuals

available.

should have the ability to obtain price information

on

comparable

sales

in

different parts of the city more easily, and to know about the future development of public infrastructure.

11


CAPTURING VALUE FROM LAND USED AS AN INVESTMENT Land

ownership

appears

as

a

good

off middle and upper-income households

investment particularly in Uganda where

who hold land and benefit from avoiding

more than 80% of landowners postulate

rising rental costs.

the value of their property has increased two-fold. Land functions as an investment

Currently, the historical trend for elites to

in cities where formal banking is expensive

capture most of the value from urban land

and where the range of options available

persists and the impact on spatial injustice

are limited. In a context of high rates of

is, in many ways, intensified, as growing

population growth, and therefore demand,

numbers of those on low incomes live in

buying land to rent out is a relatively safe

poor

investment.

rebalanced through land value capture to

However,

the

investment

approach mostly works in favour of better-

housing

conditions.

This

can

be

support the supply of affordable housing.

RECOMMENDATION: STIMULATE PUBLIC DEBATE ON DIFFERENT FORMS OF LAND VALUE CREATION AND CAPTURE

Local

governments'

In order to capture the increasing value of

capability to deliver subsidised social and

land, a thorough understanding of the land

low-cost housing solutions to meet the

market is required, including information

needs of those on low incomes will be

on land and property prices. Governments

increased with the potential of cities to

should investigate land control as a form of

generate

investment generating returns as well as a

taxation capture.

(and

national)

revenue and

through

development

property land

value

means of saving expenditure while seeking to stimulate public debate and actively disseminating information.

12


MARKETS ARE SOCIALLY EMBEDDED Markets are socially embedded. A person

Even when trust seems to be lacking, it

will

networks

appears that people are continually having

families)

to take extra steps to try and achieve trust.

rely

on

(neighbours,

their

social

communities

and

when conducting land transactions. This is because there is limited public information

It is unclear how much people really ‘know’

of markets, and so people use social trust

- in the sense of land values, current

based systems to gather and gain access to

market developments, existing purchase

information.

state/public

opportunities - and how much they would

institutions in Kampala, Arua and Hargeysa

be willing to study these aspects. Buying

do not have the ability to guide the land

land is mostly considered as a “once in a

market. Berbera, on the other hand, has an

lifetime action” and then the majority of

extensive, effective and well-managed land

residents are inexperienced and ignorant

administration system based on existing

of the broader picture and its implications.

records.

They might “trust” - as in blindly following

Consequently,

others’ advice - but they are unlikely to Trust is a key issue for transactions to

have the time to either build stronger ties

occur. All parties in the transaction are

(deepen the trust) with stakeholders or

required to trust and establish trust in

acquire accurate information needed to

different ways. Institutionally, key actors or

reach an “informed decision”.

procedures create different kinds of trust.

RECOMMENDATION: ENSURE LAND POLICY AND REGULATION REFLECT THE SOCIAL AND CULTURAL DIMENSIONS OF LAND MARKETS AND TRANSACTIONS The existing land use planning system is

cultural influence on the land transaction

widely regarded as dysfunctional. However,

process.

while the government is in the process of reviewing existing policies and legislation

It is crucial to develop an evidence base on

on land use planning and regulation and

what

exploring

(social and cultural dimensions that affects

ways

implementation

of

ensuring

and

that

their

regulations

are

influences

buyer/seller

market

behaviour)

activity and

locally

assess

the

enforced, the longstanding restrictions that

outcomes of land administration (policies,

existing regulation places on making land

tools) from a socio-cultural perspective

supply more pro-poor requires immediate

(including gender).

attention along with the existing socio-

13


SPATIAL STRUCTURE OF CITIES

The

conventional

view

of

the

spatial

informal

subdivision;

and/or

weak

structure of East African cities is that they

enforcement such that land encroachment

are fragmented (no uniform pattern of land

has

use) leading to inefficient use of land and

becomes

higher costs for people because the costs

which result in the average size of the

of moving are high and the costs of

standard plot falling.

occurred.

Equally,

scarcer,

land

as

urban

prices

land

escalate

providing infrastructure are also inflated. The spatial structure of cities is also in part Fragmentation is probably a reality in the

determined by the fragmentation of land

larger cities. This is likely a result of a lack

markets such that the rich may outbid the

of coordination in infrastructure invest-

poor, consuming more land and securing a

ment, resulting in ad-hoc development of

greater range of benefits - access to jobs

land

or

and urban services. The spatial structure

inappropriate regulation in planning and

may indicate levels of inequality present in

construction that has required the (formal)

cities, and the different housing typologies

development

found in each city could be interpreted as

parcels/blocks;

of

inadequate

large

plots

that

are

unsuited to local demand for land and

reflecting different sub-markets for land.

housing. Therefore leading to subsequent,

RECOMMENDATION: MONITOR TRENDS AND DYNAMICS IN THE SPATIAL DEVELOPMENT OF CITIES

Monitoring the physical form and spatial

real-estate

structure of cities at the neighbourhood

tenants to better understand supply and

scale provides evidence on which policy

demand-side constraints and motivations.

makers

Donors,

can

better

plan

for

meeting

sector

and

universities

landowners

and

other

and

advisors

specific land and housing needs in their

could work together with local authorities

city. For this, it is important to establish a

to find better evidence that will inform

system

reforms to land and housing policy to meet

for

monitoring

trends

in

land

consumption and work with the private

the needs of a wider range of stakeholders.

14


SPATIAL STRUCTURE OF CITIES 2017

Fig. 1: Rapid urbanisation in Kampala. An example of spatial assessment that can contribute to monitoring trends and dynamics in the spatial development of cities. This historical analysis of landsat imagery 1974-2017 shows the expansion of Kampala over six discrete periods.

15


VALUE OF RESIDENTIAL LAND

There

are

clear

differences

between

potential rental incomes of areas and evidence

that

higher-income

independent evidence that might exist to support such valuations.

residents

have captured more value from the land.

Understanding what determines prevailing

Much

owner-

land market prices is key to policy maker's

backyard

ability to intervene in the land market.

extensions on properties rented out to help

Urban land is largely a finite resource,

generate additional income and/or pay

determined by accessibility to key urban

back loans. Rents that are charged are

assets and services, with prices determined

limited to what tenants with very low

by demand and supply of land in a given

incomes can afford to pay. Often in areas

location for a given use. However, in East

where properties are mainly rented out,

Africa cities there is a general lack of

dwellings are typically rudimentary and

comprehensive land market information.

investment in infrastructure and services

There is a lack of data on how prices vary

largely absent. Further research is needed

between neighbourhoods characterised by

to better understand the basis on which

different

owners value their properties, the different

formally and informally developed, and

factors that can affect the range of rentals

intensity of development and geographical

that are charged, and whatever

location, particularly proximity to the city

housing

occupation

is

with

self-built rooms

for

and

land

uses,

types

of

housing,

centre.

RECOMMENDATION: DEVELOP AND INTEGRATE LAND MANAGEMENT POLICIES IN ORDER TO MAXIMIZE POTENTIAL VALUE INCREASE AS PART OF A LONGER TERM STRATEGY TO ENSURE SPATIAL JUSTICE BY PROVIDING AFFORDABLE ACCESS TO URBAN LAND AND HOUSING ACROSS THE URBAN AREA.

16


VALUE OF RESIDENTIAL LAND Currently, governments play a small role

needs

and the private sector provides most of the

implementing strategic spatial planning

housing

the

and sustainable development frameworks

and

to meet the SDGs; using urban design as a

informal land markets and government

feasibility tool to explore equitable and

regulations

innovative solutions to (re)development in

supply.

disconnect

Additionally,

between

both

produces

formal

challenges

in

of

those

low

socially

more

areas; and also developing and supporting

consequences

social

and

through

environmental the

continuing

growth of slum settlements. Inequalities

environmentally

incomes;

financing public infrastructure and creates unjust

and

on

sensitive

alternative affordable housing modes for low-income dwellers.

are likely to be further aggravated if public urban

development

prioritized

in

safe

continues and

central

to

be

In addition, it is necessary to address the

areas,

need for improved real estate property,

ultimately benefiting the most privileged.

land

market

and

socio-economic

information and ensure that information is Strengthening institutions for the efficient

accessible

management of urban land is crucial to

inform reforms to land and housing policy

ensure spatial justice. This can be done by

to meet the needs of a wider range of

introducing

stakeholders.

more

flexible

regulatory

to

all.

Better

evidence

can

standards that accommodate the housing

18 17


OVERARCHING RECOMMENDATIONS The recommendations presented here can

will

be grouped into three categories: planning

complexity

and

and

knowledge can then provide input for new

monitoring. Although these categories can

land policies, regulations, urban planning

be implemented separately, they inter-

and housing policies. This new knowledge

relate with and influence each other.

will also influence the trends and dynamics

policy,

knowledge

creation

of By monitoring spatial trends in the city,

generate

spatial

new

on

knowledge

those

on

markets.

development

which

the This

will

be

recorded through monitoring.

this will establish a baseline of understanding and can be a reference point for

As highlighted, new plans and policies will

before and after implementation of (new)

be

plans and policies. Monitoring also provides

knowledge

a

context

within

which

knowledge

is

created. Through tracking information asymmetries, stimulating public debate and acknow-

informed

from

creation

monitoring

and

recommendations.

This is to ensure that new planning and policy

recommendations

are

locally

relevant and embedded into the urban society they are created for.

ledging diversity within land markets this

18


CONCLUSIONS As this report has shown, the cities in this

poorer households. Market systems tend to

study are complex. Not only are they

partially compensate for this by expanding

experiencing

urbanisation,

the availability of rental contracts to cater

population growth, urban expansion and

for those increasingly unable to front the

infrastructure development, but they also

capital costs required for purchase, with

possess

markets

the result that both houses/apartments

characterized by pluralistic legal tenure

/rooms are increasingly available for rent,

systems and multi-layered relationships

while land itself is increasingly let or sublet

between formal and informal institutions

as an alternative to purchase. However, for

and actors. In addition, rising incomes

many poorer residents, this shift worsens

amongst some groups lead to increased

tenure security and weakens their asset

demand for land and buildings, resulting in

base.

highly

rapid

complex

land

continuous price inflation at levels that typically outstrip the growth of average

The socially constructed nature of the

incomes, with the result that land becomes

process

unaffordable for middle-income and

through purchase, rental or other means,

of

land

acquisition,

whether

privileges the roles played by certain

19


actors. In particular, the lack of essential

by strongly inclusive spatial planning. Yet

information on key issues such as land

improvements in both market efficiency

availability and the price of comparable

and in the capacity of state agencies to

properties creates a potentially lucrative

plan in an inclusive manner are needed if

space for brokers, who, when allowed to do

existing urban development is to be made

so, often seek to keep buyers and sellers

more just than it is now.

apart in order to maximize asymmetries of information. This inflates both risk and

At least in some respects, land markets

prices for other market actors, adding

underpin the problems evident in East

volatility to the market and also further

African cities, including fragmented and

exacerbating

of

inefficient patterns of land-use, congestion,

affordability for many. Amongst the case

unequal resource distribution and poor

study cities, this phenomenon was most

infrastructure. State intervention in land

notable in Kampala.

markets is clearly necessary if policymakers

the

problem

of

lack

wish to achieve more equal and productive The very complexity of land markets can be

cities. However, the complexity of those

instrumental in providing pathways for

markets and the difficulty in balancing the

people of different income and wealth

often-competing needs for greater market

levels to acquire a place to live and to

efficiency

secure

development

a

livelihood.

However,

that

complexity is also a problem in that it

and

more mean

equitable such

spatial

interventions

likely need to be slow and incremental.

makes it difficult to achieve coherence and complementarity. That has two effects.

Land-use

Firstly, while market incoherence makes it

effectively

possible for many poorer households to

participation

acquire land through networks and their

people and other key stakeholders, can

intimate knowledge of a typically small

play a central role in addressing spatial

part of that market, it can be extremely

justice issues by facilitating more intensive

difficult

such

and efficient urban land use and increasing

connections to secure a reasonable place

housing supply by bringing more land

to

live

for or

complexity

those work.

without Secondly,

significantly

market

hampers

the

planning and of

systems, with

the

communities,

if

used

genuine business

currently targeting the prime residential market

within

reach

of

lower

income

ability of local (and national) governments

groups. This happens to some degree on its

to plan for equitable and sustainable urban

own,

growth. In a very real sense, the complexity

‘affordable’ housing typically falls far below

of

spatial

the growing needs of expanding urban

justice for those sufficiently embedded

populations. Pro-poor land and housing

within

also

policies must play a vital role in mediating

entrenches privilege. More ‘efficient’ land

market-led land allocation if cities are to

markets are likely to exacerbate spatial

be inclusive of their residents.

land

markets key

social

both

protects

networks,

but

but

market

provision

of

truly

inequality unless they are mitigated

20


TEAM PRINCIPAL INVESTIGATORS COLIN MARX

ALEXANDER JACHNOW

TEAM OF THEMATIC EXPERTS ELS KEUNEN

MICHAEL WALLS

MARTYN CLARK

CAROLINA LUNETTA

DORCAS NTHOKI

TONY LLOYD-JONES

PAUL RABÉ

SUSANNA ALVES

FREDERICO REDIN

GEOGRAPHIC FOCUS:

GEOGRAPHIC FOCUS:

METHODOLOGICAL FOCUS:

UGANDA

SOMALILAND

CITY LEVEL SPATIAL

METHODOLOGICAL FOCUS:

METHODOLOGICAL FOCUS:

ASSESMENT

HOUSEHOLDS SURVEYS

LAND TRANSACTION BIOGRAPHIES

TEAM OF LOCAL EXPERTS UGANDA

SOMALILAND

SHUAIB LWASA

JAMA MUSSE JAMA MOHAMUD H. HOSSEIN

TEDDY KISEMBO

LEGEND:

IHS

DPU

IPE TRIPLELINE

IN COUNTRY TEAM MEMBERS

21


INSTITUTE FOR HOUSING & URBAN DEVELOPMENT STUDIES ERASMUS UNIVERSITY RBURGEMEESTER OUDLAAN 50 MANDEVILLE (T) BUILDING, 14 FLOOR, 3062 PA ROTTERDAM, NL ADVISORY@IHS.NL

THE DEVELOPMENT PLANNING UNIT UNIVERSITY COLLEGE LONDON 34 TAVISTOCK SQUARE, BLOOMSBURY, LONDON WC1H 9EZ, UK DPU@UCL.AC.UK Find publications here: https://www.ucl.ac.uk/bartlett/development/r esearch-projects/2019/feb/spatial-inequalitytimes-urban-transition-complex-land-markets

IPE TRIPLELINE CONSULTING TINTAGEL HOUSE, 92 ALBERT EMBANKMENT, LONDON SE1 7TY, UK 3L@TRIPLELINE.COM

EAST AFRICA RESEARCH FUND HTTP://WWW.EASTAFRICARESEA RCHFUND.ORG/

UK AID HTTPS://WWW.UKAIDDIRECT.ORG/


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