LAND ECONOMICS
BACK GROUND
The complexity of urban life proves an obstacle to the application of economic analysis. There is no satisfactory resource allocation model (with a manageable number of variables), which can determine the optimal combination of factors of production in an urban economy – an economy that changes both over time and in space. Yet economic analysis can and must be applied to the many problems relating to urban land use. The location of economic activity, spatial structure and urban growth, land values and town planning, the property market, the process of development, the techniques of investment analysis, betterment and land nationalization, the economics of transportation and the environment, the economics of housing, the condition of the construction industry – these and other areas provide the economist with the opportunity to apply his special powers of analysis and to investigate in specific contexts the productive and distributive processes of urbanized society.
As a background for the study of the demand for urban land, we shall need to consider the basic forces that underlie urban organization – the social, economic, and technical factors that have joined in the creation of cities and which are responsible for their growing importance in our national life. We shall consider the city as an economic mechanism that has evolved in response to the ever changing economic needs of society in the production, consumption, and distribution of goods and services. Not all the factors that effect the demand for real estate are economic, however, Social factors must also be considered; one should examine the city as a social complex in order to learn the characteristics of the people who inhabit cities, and to study the urban way of life as it may affect the demand for land.
THE ECONOMIC BASE
A clear understanding of the economic base of a particular city is a requisite to an understanding of the demand for the land located in it. No prediction of the factors that influence the demand for the services of urban land can be made without forecasting the future trends in the basic economic activities of the area. City planning, planning to meet the housing needs of the community, forecasting population trends, fore-telling the real estate market, appraising land values, predicting tax revenues – all and many other prognostications call for an analysis of the economic base of the area as a first step.
In general, the process of appraising the economic base of a community is a matter of gathering all available facts of economic significance, analyzing past experience and present status, and basing the forecast on an extension of recent trends as modified by those factors of change, which can be discerned. More specifically this procedure involves a prediction of nature, volume, and stability of employment and income in the community, and a forecast of the characteristics of the population.
As per the master plan – 2015 vision document the following are the places identified for strengthening economic base of Bangalore:-
Develop the CBD
The development of the CBD is still in its embryonic stages in Bangalore’s centre: M G Road to Richmond Road, precincts of Cunningham Road and Millers Road. The CBD needs to be developed and strengthened and space must be reserved for the purpose.
Favour mixing of functions
Around the CBD, peri-central zones such as Shivajinagar, Kalasipalyam, and Kempapura Agrahara show a high level of mixing: artesian activitries, small industries and housing. These areas play and important role in the economic organisation of the South, North and West zones. Mixing between functions must be particularly encouraged in these areas and infrastructure strengthened for ensuring betterment in the quality of life.
Conduct urban renewal operations on urban wastelands
The industrial lands of Minerva Mills and Binny Mills pose a great land opportunity to launch a combined urban renewal project. They offer the possibility of organizing a centrality of the masses that has artesian and commercial activities, equipment, green spaces and areas for leisure activities.
Redefine industrial areas
Traditionally industrial areas such as Peenya, Bommasandra Industrial Estate, Mysore Road and Magadi Road need redefining in terms of improvement of infrastructure, better management for commuting and integration of residential and commercial areas and anticipation of the industrial showdown in several zones (Old Madras Road…….)
BACK GROUND
The complexity of urban life proves an obstacle to the application of economic analysis. There is no satisfactory resource allocation model (with a manageable number of variables), which can determine the optimal combination of factors of production in an urban economy – an economy that changes both over time and in space. Yet economic analysis can and must be applied to the many problems relating to urban land use. The location of economic activity, spatial structure and urban growth, land values and town planning, the property market, the process of development, the techniques of investment analysis, betterment and land nationalization, the economics of transportation and the environment, the economics of housing, the condition of the construction industry – these and other areas provide the economist with the opportunity to apply his special powers of analysis and to investigate in specific contexts the productive and distributive processes of urbanized society.
As a background for the study of the demand for urban land, we shall need to consider the basic forces that underlie urban organization – the social, economic, and technical factors that have joined in the creation of cities and which are responsible for their growing importance in our national life. We shall consider the city as an economic mechanism that has evolved in response to the ever changing economic needs of society in the production, consumption, and distribution of goods and services. Not all the factors that effect the demand for real estate are economic, however, Social factors must also be considered; one should examine the city as a social complex in order to learn the characteristics of the people who inhabit cities, and to study the urban way of life as it may affect the demand for land.
THE ECONOMIC BASE
A clear understanding of the economic base of a particular city is a requisite to an understanding of the demand for the land located in it. No prediction of the factors that influence the demand for the services of urban land can be made without forecasting the future trends in the basic economic activities of the area. City planning, planning to meet the housing needs of the community, forecasting population trends, fore-telling the real estate market, appraising land values, predicting tax revenues – all and many other prognostications call for an analysis of the economic base of the area as a first step.
In general, the process of appraising the economic base of a community is a matter of gathering all available facts of economic significance, analyzing past experience and present status, and basing the forecast on an extension of recent trends as modified by those factors of change, which can be discerned. More specifically this procedure involves a prediction of nature, volume, and stability of employment and income in the community, and a forecast of the characteristics of the population.
As per the master plan – 2015 vision document the following are the places identified for strengthening economic base of Bangalore:-
Develop the CBD
The development of the CBD is still in its embryonic stages in Bangalore’s centre: M G Road to Richmond Road, precincts of Cunningham Road and Millers Road. The CBD needs to be developed and strengthened and space must be reserved for the purpose.
Favour mixing of functions
Around the CBD, peri-central zones such as Shivajinagar, Kalasipalyam, and Kempapura Agrahara show a high level of mixing: artesian activitries, small industries and housing. These areas play and important role in the economic organisation of the South, North and West zones. Mixing between functions must be particularly encouraged in these areas and infrastructure strengthened for ensuring betterment in the quality of life.
Conduct urban renewal operations on urban wastelands
The industrial lands of Minerva Mills and Binny Mills pose a great land opportunity to launch a combined urban renewal project. They offer the possibility of organizing a centrality of the masses that has artesian and commercial activities, equipment, green spaces and areas for leisure activities.
Redefine industrial areas
Traditionally industrial areas such as Peenya, Bommasandra Industrial Estate, Mysore Road and Magadi Road need redefining in terms of improvement of infrastructure, better management for commuting and integration of residential and commercial areas and anticipation of the industrial showdown in several zones (Old Madras Road…….)
Provision spaces for setting up of new industries
New industrial activities, linked with logistics areas, must be able to find dedicated space in existing and new industrial zones.
Favour the setting up of logistic and IT activities
Bangalore must be able to host new economic functions such as logistics and IT. Some zones must be set aside as priority zones for logistic activities (North of Whitefield and Yelahanka) and IT activities (South of Whitefield, connected to Hosur Road).
CHANGING FACTORS OF URBANISATION
The forces that lead to concentration of people in cities are in part physical and in part cultural, using this term in the broadest sense. The physical consideration is the costs of friction. I.e. the energy and time required to move people, goods and information from place to place. Thus, with the increasing complexity of production and distribution, with the proliferation of artefacts and the infinite specialization of function, the more important (in the aggregate) becomes the physical proximity, or stated in the converse, the more costly becomes dispersion. However, the impact of the basic relationship is modified by cultural forces; and because the cultural frame work of society is ever changing, so there are continual changes in the final direction and strength of the factors that affect city growth and structure.
THE URBAN WAY OF LIFE
It has been said that the most significant feature of urban society is its heterogeneity the social and economic diversification of individuals, groups, functions and institutions. Closely associated with heterogeneity and interdependent with it are the characteristics of large numbers, density, and mobility. Some of the implications of these aspects of our urban culture will be briefly discussed.
The density of population that characterizes our urban places enforces close physical contracts between persons even though social contacts may be distant. The frequent movements of large numbers result in frictions and irritations. The process of living and working within a confined area in the absence of sentimental ties or group loyalties fosters a spirit of competition and mutual exploitation. It encourages the physical separation of economic and social functions into specialized areas – residential, retail, industrial, recreational. One of the significant consequences of the development of functional areas is the sometimes – wide separation of place of work from place of residence.
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