The industrial land market in the Netherlands: policies, prices and locational quality

APA International Division


Saturday, July 2, 2016
2:30 p.m. - 3 p.m. CDT

CM | 0.50

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Dutch urban planning has received international recognition for the organization of land-use development in an integrated and comprehensive way. This integrated approach to planning is based on a public land development model. Defining feature of this approach is that the municipality purchases the land earmarked for development. The municipality then prepares the land for further development, before it sells the serviced land to developers and/or end users (e.g. industrial companies). Industrial land policies by Dutch cities are usually based on the same principles, but then combined with economic policies to attract companies to locate in the municipality. With this position of municipalities as market players on the land market – and fuelled by competition between cities to attract industrial firms - a special kind of market has been created, with impact on prices, locational quality and industrial companies’ investment decisions and location strategies. Interestingly, some similarities can be found between Dutch debates on industrial land policies and present industrial land market reform in China.

In this presentation I will discuss the features of the Dutch industrial land market. Additionally I will refer to industrial land market reforms in China as well. Next to an institutional-economic analysis of the functioning of this market and its output in terms of prices, quality and quantity, I will particularly address the way the industrial land market interferes with the industrial property market, leading to accelerated processes of deterioration of existing properties. The presentation will conclude with some remarks with respect to sustainable industrial land development.