5.5 Land Values in Cities Bid Rent Curve Retail


Land values in cities vary greatly. Land closest to the CBD is the most expensive as it is the economic heart of the city. The value of land decreases with distance from the CBD. Land values in cities are based on the prices people/businesses are willing to pay for land – this is known as bid rent. Bid rents are highest in the CBD as land is in short supply and all major transport routes converge there, making it accessible.


Manufacturing Shops Residential Distance from CBD Consequence on land use


: Fig. 5.16 Bid rents in urban areas


ACTIVE LEARNING


1. Why are land values in the CBD so high?


The most valuable site within the CBD is known as the Peak Land Value Intersection (PLVI). It is typically filled with large department stores and other large shops, as the area is highly accessible and these shops experience


a high volume of passing trade. Many of these department stores are multi-storey in order to maximise space. Shops tend to decrease in size with distance from the CBD as they are not as accessible and, therefore, do not experience the same volumes of trade. As a result, bid rents further from the CBD are lower.


Offices GEO DICTIONARY


Bid rents: prices of rent of a property are decided by the demand for property


Peak Land Value Intersection: land that has the greatest commercial value


Offices do not rely on passing trade to the same level that shops do, and therefore cannot afford to pay the highest rent prices. Many offices are often found on the upper floors and on the edges of the CBD, e.g. law firms, accountants and doctors.


Industry


In the past, manufacturing industries located on the fringes of the CBD but these are now located on the outskirts of the city, where urban land is cheapest. Most modern factories require large sites, which are more readily available and affordable on the outskirts of the city. Factories also benefit from being located far from the inner city traffic congestion, and close to ring roads and motorways on the edges of the cities, e.g. Sandyford Industrial Estate in the south of the city. In some cases, manufacturers will locate in areas of the city which have been renewed, e.g. the Dublin Docklands.


Suburbs


As the population of a city grows, so too does its suburbs. As suburbs become more densely populated, the value of land here also increases. The most valuable land is located where major transport links meet, as they offer access to the city centre. Independent commercial areas (multiple nuclei) have developed in these suburban areas to accommodate the needs of a growing population. Examples of these can be seen in


148 ELECTIVE 5 PATTERNS AND PROCESSES IN THE HUMAN ENVIRONMENT


€ rent per m


2


A


Z


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186  |  Page 187  |  Page 188  |  Page 189  |  Page 190  |  Page 191  |  Page 192  |  Page 193  |  Page 194