Urban Structure and Land Prices in Bogotá

Abstract

The analysis of urban structure is one of the approaches used to express land values. We analyze the land value gradient in Bogota based on its urban structure in 1991 and 2005. Urban structure is defined using the density threshold method. To take into account the spatial characteristics of land values, spatial econometrics methods are used, specifically spatial lag and spatial error models. The results show a change in the spatial urban structure of Bogota during that period of time, and that land values respond to that structure with a time lag. The CBD does not have any influence on land values in Bogota, which are more related to a polycentric urban structure.