REAL STATE ECONOMICS

Urban Planning Policies Should Be Used To Offset the Economic Imperfections of the Real Estate Sector

Urban Planning Policies Should Be Used To Offset the Economic Imperfections of the Real Estate Sector

Introduction

The development of gated communities in cities around the world is primarily a sign characteristic of '90s and early millennium. Such residential enclave accommodates mainly affluent social groups within the urban social structure. It is characterized by a closed perimeter security devices, high quality housing construction and building code coexistence and social infrastructure and sports. Its development demonstrates urban social differences and the growth of inequality in the city space. Different stakeholders involved in the process of urban planning and development of these enterprises, motivated by different interests. However, this assignment focuses on the urban planning policies which can be used for balancing the economic imperfections of the real estate sector.

Discussion

Urban planning or zoning can be defined in many ways and according to different degrees of complexity. From a traditional perspective, urban planning is related to the role of government, at different levels, to intervene in the design, management and maintenance of cities. This process takes into account guidelines for the growth of human settlements, their functions and tools to manage urban dynamics. Thus, from the public sector, it is considered as regulatory activity, and related to bureaucratic procedures. However, from a broader view, not only the state intervenes in urban planning, but also the private sector and civil society. In this sense, the "urban planners" and not just technicians work for the state bureaucracy and politics, but also for urban developers and civil society organizations (Dowall, 1999, pp. (n.d.) This is a process which not only contributes, but also shapes the social and economic restructuring. Moreover, it is a highly politicized process where the interests of different stakeholders are highly relevant and therefore negotiation becomes an essential strategy. But in most cases, the state sector urban planner is seen as a coach who must stay outside the game and political power.

Imperfect Real Estate Market

Imperfect market is the one in which information is not readily disclosed to all the members in it and where matching of sellers and buyers is not quick. Real estate market is considered to be imperfect because it do not remain rigidly to perfect flow of information and deliver immediate buyers and sellers.

Role of Urban Planning in Real State Sector

From the past several research studies, it has been identified that the sector of real state can serve as the driving force that can have an influence on the growing economies and more over on industrialized countries which is because of the direct and open relationship among the specific sector with several other areas as well as on the growing market. Most precisely there have been three difference levels of development in the real state market; emerging markets, housing markets, real statae and eonomies of scale which are unauthorized and the markets of real state (Ramon & DeGennaro, 2005, ...