Regulatory Impacts on Land and Housing Markets in Mumbai

Nagarlok (Journal of Indian Institute of Public Administration) XXXVII(3):50-65

18 Pages Posted: 20 May 2007 Last revised: 16 Apr 2013

Date Written: September 1, 2005


Land use regulation exists in various countries in various forms, primarily serving as an instrument for controlling the allocation of land and its development. The economic justification for the regulation of land markets through land use planning and other instruments has been well studied and is a well developed subject. However, in the recent past, there has been an increasing realisation that the regulation of urban land has been resulting in some undesirable impacts, particularly on the operation of markets, which has been resulting in an increase in land prices and a reduction in the welfare of people. In a burgeoning metropolis like Mumbai, where the land and housing needs are very high, regulations like these constrain the supply of housing through a reduction in available built space. Land use planning and regulation influence the outcome of land available for housing in Mumbai. The cumulative effect of the regulation is difficult to estimate, but nevertheless important to have resulted in the current state of markets. The operation of land use planning system, in particular density controls, tend to amplify the impacts, which forms the subject of the study. However, in the light of various policies already impacting the markets, the study results have to be carefully interpreted. This paper presents an attempt made to assess the impacts of such regulations, while focusing on the influence of density regulation on land prices through a referral study of Mumbai.

Keywords: land use planning, density regulation, property markets, regulatory impacts

JEL Classification: R52, R10, R11, O21, C21

Suggested Citation

Nallathiga, Ramakrishna, Regulatory Impacts on Land and Housing Markets in Mumbai (September 1, 2005). Nagarlok (Journal of Indian Institute of Public Administration) XXXVII(3):50-65. Available at SSRN:

Ramakrishna Nallathiga (Contact Author)

NICMAR ( email )

NICMAR, 25/1, NIA Post Office, Balewadi
Pune, Maharashtra 411045
91-20-66859146 (Phone)


Center for Good Governance ( email )

Dr MCR HRD Campus, Road No. 25, Jubilee Hills
Hyderabad, Andhra Pradesh 500033
91-40-23541907 (Phone)


Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics