How do we densify and socially integrate our cities? On the efficiency of urban property incentives in the vicinity of mass transit stations

Abstract

Stated choice methods were used to measure the effect of different types of incentives (direct and indirect subsidies, changes in building regulations and others) in the willingness to build denser and socially integrated residential projects by real estate firms in the vicinity of metro and bus rapid transit (BRT) stations. A sample of 52 professionals, from building companies and real estate firms, was asked to evaluate a series of urban scenarios under various incentive schemes; in each case they had to choose whether they would be willing to start a conventional residential project (i.e. for buyers belonging to the same socio- economic group) or a socially integrated one (i.e. mixing buyers from different groups). Results show that an aggregate level, only 16% of respondents would be interested in starting new residential projects at those locations. However, the availability of incentives could have a significant impact in the willingness to initiate higher density projects around the stations and also, but to a lesser degree, in the willingness to initiate socially mixed residential projects.