Analysis of the Effective Forces in Urbanization of Rent in the Form of Urban Residential Land Development Plans (Case study: Zanjan city)

Document Type : Research Paper

Authors

1 Associate Professor of Geography and Urban Planning, Department of Geography and Urban Planning, tabriz University, Tabriz, Iran

2 PhD Candidate in Geography and Urban Planning, Tabriz University, Tabriz, Iran

Abstract

Introduction
The city structure as a spatial form comes from the interaction between environmental, economic, social, and political processes. According to the Growth Coalition Theory, the basis of the coalition for the growth of local power elements in cities mainly depends on land factors. In this context, active agents in land market and urban property become key factors in urban development and production of rent space. This paper, based on theoretical literature on urban land rent, introduces rent-seeking mechanisms in urban residential land supply process, and at the same time studies the production of urban space derived from it. Afterwards it exmplains urbanization of rent process with an emphasis on redistributional rent-seeking as the main attribute of economic rentiers system in Iran along with its impact on the structure of Zanjan, Iran.
In Iranian cities, rent-seeking happens in available urban spaces with a great variety of proposed rents. Otherwise, this occurs through creation of new spaces that are contrary to urban development standards, mainly with the aim of achieving absolute rents. The latter scenario, according to Lefebvre's readings, is in the form of producing new spaces or spatial expansion. Due to production of new spaces, in comparison with spatial constraints, rent-seeking plays a major role in urbanization and city construction  in Iran. In this regard, one of the fields of urbanization that concerns rent and rent-seeking in the cities of Iran is inefficient allocation. This can be seen in the scarce number of urban spaces, due to undeveloped lands through ineffective implementation of land development policies, one of the most important and prevalent urban land policies since the 1980s, introduced to the residential land speculation system. This economic practice is one of the characteristics of Iran’s urbanization, which is directly related to the economic structure of the country, called the rentier system. The residential land supplied in this way, with varying degrees of underdevelopment level and excessive use and actual demand of the city, creates the ground for high exchange value. Thus for a long period of time, without a complete development of residential land, it provides the space for redistributional rent-seeking, resulting from the absolute exchange value created on the land.
Methodology
This paper employed a descriptive-analytical method to examine the role of factors, affecting the of rent prices in Zanjan within a rentier economic system by residential land development plans. Data were collected through library and field studies. It went through data analysis, path analysis, the multidimensional decision-making model, the multi-criteria decision-making model, and Delphi analysis method with fuzzy weighting, inside DPSIR model. At first, the data were ranked by Delphi process and fuzzy weighting. Then, they got weighted and ranked, using a multi-criteria decision making model. In the next step, using the path analysis method, the effect of each component got analyzed on the production of the rented space.
Results and Discussion
Regarding the influence of different forces on shaping the urban rented space, field surveys also showed that the urban growth boundary control indicators with direct effect of 0.527 had the greatest correlation with city construction, based on urban land rent. In other words, the statistical community, when explaining the relations between independent and dependent components, believed that what could control urban construction from rented space production, were components based on controlling the city's boundaries. Thus, it could be more effective in optimal organization of urban spaces. In contrast, macroeconomic indicators, influenced by the performance of the rentier government, with a direct effect of 0.359, proved to be less effective, compared to other components.
These components undermined the structure of urban management. As urban management weakens and macroeconomic processes, creating the rents, are not controlled, local government and non-government agents, involved in land and housing, become unable to control the flow of land and urban housing. Therefore, the production of rented space in the city through rent-seeking behavior of the economic-social elite gets intensified.
In this regard, statistical findings indicated that the share of land prices at the cost of housing with a coefficient of 0.794, the share of oil added value in GDP with a coefficient of 0.792, the ratio of liquidity in GDP with a coefficient of 0.774, duration of permits, and construction for more than 80% of residential lands in land development plans with a coefficient of 0.749 had the biggest impact on production of rented space according to the Todim Model.
Conclusion
Considering this research’s findings about the impact of different economic, social, and managerial forces on the production of rent space in Zanjan city, in order to improve the status quo and move towards production of urban spaces as a suitable response to real housing needs, it is necessary to take the following into consideration:

Management of oil revenues, liquidity, and government assistance to create a productive urban economy
Prevention of buying/selling or speculation of land plots through proper implementation of residential land development policies, based on real land needs
Attentiveness to urban regeneration policies
Facilitation of issuing building permits for vacant land.

Keywords

Main Subjects

References

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Human Geography Research
Volume 53, Issue 1
April 2021
Pages 85-103

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History

  • Receive Date: 05 June 2019
  • Revise Date: 28 October 2019
  • Accept Date: 28 October 2019

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