Effects of a Neighborhood Improvement Program on theLand and Built Area Prices: The Case of Bosa Occidental,Bogotá, Colombia, 2012 – 2015

Abstract

The Neighborhood Improvement Program (PMIB in spanish), led by the Habitat Secretary of the District (SDHT), appears as an initiative that seeks to intervene and improve the physical conditions of the neighborhoods, developing in this process comprehensive actions involving social management with citizen participation. The purpose of this paper is to evaluate the effects of the PMIB on the land and the built area prices of the intervened areas in Bosa Occidental, a location in Bogotá, Colombia. The results show an 8,45% growth of the land value of intervened areas compared with the zone of control (statistically significant to 1%). On the other hand, the value of the square meter does not present significant differences between the compared zones. This means that the interventions of the program generate a positive effect on the land value, increasing the patrimony of people.