Lagos and established that the spatial formation of city is by and large the result of two ..... Town, Satellite Town, Muslim Town and the New Muslim Town. On the.
Pakistan Geographical Review, Vol.71, No.1, June. 2016, PP 11-30 ASSESSING DETERMINENTS OF RESIDENTIAL LAND VALUES IN BAHAWALPUR CITY OF PAKISTAN ASAD ALI KHANa, MUHAMMAD USMANa AND KINZA KHANb aDepartment of Geography, The Islamia
University of Bahawalpur
bFaculty of Veterinary Sciences BZU Multan
ABSTRACT Residential land values of any area are strongly influenced by the type of land available for habitation and degree of development of the available piece of land. Currently Bahawalpur is rapidly transforming into the economic and educational hub of Southern Punjab. Immigrants from surrounding rural areas as well as from other parts of the country have augmented pressure on the residential land of the city, and with increasing demand prices of residential land are also touching the sky. This study based on primary as well as secondary data has been conducted realizing the need to look into the issue properly. It focuses primarily onto the main determinants of residential land values in Bahawalpur City. The data about residential land values was collected from property dealers and by interviewing users. Officially approved prices of residential land were obtained from concerned government offices. The perceptions of people about the determinants of residential land values were also inquired. Observed residential land values which are actually in practice were compared with the documented official residential land values for some selected parts of the city with special reference of determinants. Three different residential land categories were established on the basis of determinants and residential land values. The study reached the conclusion that residential land values in Bahawalpur city are high in the areas located near CBD and in the areas which have high physical and economic access. Key Words: Determinants, Economic environment, Land values, Physical environment, Primary and secondary data, Residential land
INTRODUCTION Land values are probably the most important price in urban economies and cost of unimproved land measures the worth of property rights over space itself. Substantial theoretical and academic literature on urban economics pursues to explicate the determining factor of land values, counting the access to employment opportunities and work place, the value of local facilities, and land use regulations affecting the residential or commercial feasibility of land (Albouy D and Ehrlich G, 2014). Values of the land are fundamental in understanding the property prices and valuations as well as the monetary impact of land use policies and taxes charged on property. Values of urban residential land in any area strongly influenced by the type of land available for habitation and degree of development of the available piece of land. The areas characterized with suitable location, variety of economic activities, high accessibility, developed road network, availability of pure drinking
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Assessing determinants of residential land values in Bahawalpur city of Pakistan water, developed infrastructure, educational and health facilities are associated with high land values as compared to other counterparts. Land values in-turn control and reflect the character and strength of land use and can help in understanding the overall pattern of land use of the city. It is one of the most striking factors that determines the land use pattern and morphology of a city. It is, therefore, rational to assess the land values of a rapidly growing city like Bahawalpur. Viewing the issue temporally it appears that the study of urban land value has attracted the attention of geographers and researchers from other disciplines long ago but it came into spot-light currently. Marshall (1890) was amongst the earliest who talked about urban land values. His main focus was to work out the profit-making uses of land like setting up manufacturing units and retail stores. He highlighted the significance of location inside the city, and applied the term ‘situation value' meaning the price which a site would catch if it is sold in the open market. Numerous land uses can be offered for land and that use captures the site from which the greatest cost-effective outcomes are expected. Therefore, location plays an imperative part in determining land values. If it is considered that urban land values are basically affected by location of the land, this suggests that there is an optimal location of urban piece of land. In spatial perspective there can be single location or site in the city that possess the maximum land value and that all the other sites have a value which is some fraction of that site. This location of maximum land value is commonly mentioned to as the ‘hundred percent location’ or ‘hundred percent corner’ or peak land value intersection (Northam, 1979). Land values of urban areas are not evenly or uniformly distributed. Normally, highest land values are found in the city center in almost all cities of the world. With increasing distance from center of the city the land values tend to decrease sharply. However, the decrease is not uniform. In bigger cities land values comprises on mini-poles such as local trade centers, business streets and so on. Usually decline in land values follow some pattern as the distance increases from mini-poles but it varies from city to city. As a point of fact, land value is the economic value of a land parcel in the open market which is decided by competitive bidding between consumers. It is controlled by several elements. Most significant among them is location of the land. In this context a common saying among the real estate’s is that the value of a land parcel is chiefly decided by three factors namely its location, its location, and its location (Dicken, 1990). The location of a land has many facets. Its location in respect to the city center, commercial centers, neighborhood markets, industries, main thoroughfares, railway stations, air ports etc. The locational preferences for residences, industries and business differ prominently. Besides location a numbers of other local factors have also great impact on land values like provision of facilities, taxes, accessibility, prevailing environment, and so on. Therefore, land values of any area are the result of complex interplay of many factors (Carter, 1990). Their relative importance, however, may vary from place to place. Land
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Khan, Usman and Khan values in Bahawalpur too, are influenced by a number of factors notably by location of area, distance from center of the city, density of population and approachability. A complex interplay of these factors along with several other supporting factors control the land values of this city. However, this study focuses mainly on to the role of distance that exists between the location of land and Central Business District (CBD) and accessibility because these factors are alleged to be more influential in determining the residential land values in Bahawalpur. Such kind of base line studies can help the city planners and the departments that are concerned either directly or indirectly with urban residential land prices.
THEORETICAL FRAMEWORK The vital role of cities in human advances has always been of immense significance for researchers, planners, policy-makers and urban residents. Several studies, hitherto, have been conducted on urban land use in various parts of the world, which explicate the great interest of researchers in the field. Mabogunje (1968) studied the distribution and various features of housing areas in Lagos and observed that residential lands and their values follow social and physical patterns in the city. On the basis of residential land use, these areas can be grouped in to low, medium and high class housing areas. Ayeni (1979) examined the areal relations and organization of residential parts in Lagos and established that the spatial formation of city is by and large the result of two inter-reliant factors, location of residences stock and human accomplishments. Sada (1979) made an attempt to classify the land use of the cities of developing countries and recognized four main physical sections of cities in these countries. These distinctive sections include the Government Reservation Areas (GRAs), which produce positive effects in most of the cities as they are routinely well planned. Second division includes private layouts, which usually produce both positive as well as negative effects because life quality in these areas is based upon the monitoring method of managers. Third section includes the traditional and old housing areas, and fourth section includes uncontrolled and unplanned residential areas of city fringe. To him, the last two sections are infamous for their depressing imprints on improvement due to overpopulation and urban sprawl. Likewise Frishman (1979) worked on the growth pattern of cities in the light of Hausa-Fulani rule, the British rule and the Independent Authority. Particularly about Kano he pointed out that in contrast with the European and American cities, the development of city was highly influenced by the nature of land tenure laws. The use of land in each area of Kano was mixed type and separation by income and possessions did not happen. Every ethnic group develops its own subcity, its own sector, and spread out along its margins. Okpala(1981) revealed that role of residential mobility is incredibly significant in the even functioning of urban housing markets. According to him,
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Assessing determinants of residential land values in Bahawalpur city of Pakistan residential mobility helps the phenomena of filtering down process that is exceedingly essential for improving access to urban residences. Williams, (1984) indicated that a very close relationship exists between the land values surface and the pattern of roads. Street pattern and width of roads also affect the land values Onibokun (1985) asserted that the quality of housing areas of the cities has prominent impact on general welfare of the community, social behavior, satisfaction level, education, health and efficiency of the people. Hammond (1988) avowed that even if the land use patterns of urban areas are the consequence of natural and man-made factors, but in actual fact they are the product of economic intentions. He argued that distance is a basic determinant of accessibility and subsequently of the land values. Differences in the degree of approachability amongst routes can result associated disparities in land values (McBride, 1980). The meeting of routes at city core (like Bahawalpur) offers highest accessible location of maximum accessibility associated with highest attractiveness and desirability and consequently with the higher land values of whole builtup area. Likewise, road meeting points and nodes located along single traffic routes provide high accessibility to the larger segments of the city (Fellman et al., 1990). The rental charges and related values of land are thus a response to variable level of intra-urban accessibility of the areas. Highest degree of accessibility is considered to exist in city center where there is the hub of routes and it is the location at which average transportation costs are minimum (McBride, 1980). Land values are highest in the core which is considered to be the more accessible point and as the accessibility reduces from the center, so do the values of land and land use settle down in location relations to that rent community can afford. The point that has the highest values of land is labeled to as ‘hundred percent location’ or ‘peak land value intersection’. Olaore (1991) working on land values in Kaduna, desegregated the municipality into housing neighborhoods of reasonably comparable features to settle down the values of land. His results show that the land value surface of Kaduna is maximum in CBD with a structure of ridges and valleys patterned towards the city fringe. Strassmann and Blunt (1994) examined the reason of high land price for housing in Manila and observed that despite vacant urban land, land values are relatively high in the city. They found that this is not because of the lack of infrastructure but because of negligible non-utilization land tax and zero transaction cost. Therefore, land owners hold land vacant and wait for getting high price. As a result demand of land increases and eventually land values rise up. McDonald (1979 and 1990) and McMillen (1996) pointed out that in the polycentric cities like Chicago and Los Angeles development of sub centers have taken place. Therefore, the patterns of land value distribution in these cities have been changed from monocentric to polycentric. The city center is still the area where highest land value exists. However with the development of sub centers change has taken place in the land valuedistance gradient. Land values toward the sub centers increase at a
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Khan, Usman and Khan variable rate with increasing distance from center of the city. Okewole (1997), in a study on Bodija Estate, Ibadan, revealed that rising environmental restructuring is not positively influencing the planned residential areas because of the reason that designed environment does not fulfill resident’s ambitions. Adindu and Ogbonna (1998) while studying the nature of urban expansion in Owerri concluded that although the growth of city is circular in nature, its future development is based on the nature of periphery areas. Omirin (1998) in his study of residential land accessibility in Lagos indicated that it is influenced by the interaction of numerous factors in which the most outstanding are low rate of new housing supply, rising competition in the demand for inexpensive lodging in the cities, and the radical reduction in the exchange value of the local currency with the currencies of other countries from which most of the construction materials are purchased. Morenikeji (1998) while analyzing the rental value structure of housing buildings in Minna between 1980 and 1996 recognized three different groups of residences which are the traditional compound type, modern compound type and modern flat type. The values of these different types of housing may differ significantly. Han and Basuki (2001) while analyzing the spatial pattern of land values in Jakarta found that among the explanatory variables of land values distribution, distance from the CBD is more important in determining land value pattern in Jakarta. Aluko and Olawuni (2002) in a study on regularizing-ship land titling issues in squatter areas of Lagos pointed out that a perceived incongruence is found among the need for cost recovery and the need to keep resolution reachable to inhabitants. They reached the conclusion that rather than continuing by the government the state of affairs and circumstances under which squatters reside, it is necessary that the right of squatters to carry on use of their land be accepted and where feasible legitimated. Okoror (2005) in a study on Benin city confirmed the existence of a higher degree of relationship among locations and socio-economic traits. He pointed out various planning sub-regions within the city such as urban concentration at nodes, urban poor areas and marginal sub-regions in problem.
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Assessing determinants of residential land values in Bahawalpur city of Pakistan
Fig 1: Main Determinants of Residential Land Values Scholz (1983) studying the South Asian cities, documented that they are formed of two distinct portions, so far as their construction, age and functions are concerned. They comprise the older native town which is basically of the oriental type, the British referred to it as the ‘city’, and the newer ‘model town’ which has been built according to the principle of zoning pattern (Smailes, 1969; Scholz, 1983). Most of the cities of Pakistan including Bahawalpur exemplify the views of these researchers. However, the scientific studies on these cities are sporadic. Rahman (1983) studied the spatial distribution of population in Karachi. She was primarily interested to work out whether population distribution has any relationship with land value distribution or not and reached the conclusion that land values and population density decreases with the increasing distance from the city center. Dowall (1989) in land and housing study of Karachi attempted to work out prices of residential plots and associated housing problems in the city. He observed a common tendency that prices of plots fall with increasing distance from the city center. Both these studies demonstrate that Mills’s (1967& 1972) model fits well to explain the land value and distance relationship in Karachi city. Jiang H, Jia S H and Huang Y (2013), in a study on 35 cities of China revealed that urban land values are positively influenced by population size, living standard of the inhabitants, level of economic development and urban infrastructure. To sum up, theoretical framework suggests that there are several factors effecting urban residential land values (Fig1). These factors may generally be grouped in to four types namely physical, socio-economic, environmental, and infrastructural and institutional (Litchfield, 1974). It is thus reasonable to say that land values in urban
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Khan, Usman and Khan areas are the function of these factors and can be expressed as; LV = f (Se, P, E & I) Where LV represents land values, Se stands for socio-economic factors, P stands physical factors, E stands for environmental conditions, and I stands for infrastructural and institutional factors. Socio-economic forces effecting land values of urban areas can be examined from geographical, sociological, and economics angles.
STUDY AREA AND METHODOLOGY The study area, Bahawalpur city (Fig 2) consists of highly developed, moderately developed and less developed areas. Like several other cities of Pakistan, it is also a fast growing city. Due to high natural growth rate and migration waves from surrounding rural areas as well as from other parts of the country it is rapidly expanding. Few years back, its population has crossed the landmark of one million. Every year, a large number of people coming from other areas in search of education for their children, jobs, health facilities and other urban amenities settle here. Education and health facilities are the main attractions and currently dominate the overall scene of the city. Thus, it would not be wrong to classify Bahawalpur as an educational city. Geographically, it is located at the fringe of famous desert Cholistan in southern part of the Punjab province on the left bank of River Sutlej. It is capital city of the Bahawalpur district which extends between latitudes of 270-48' & 290-50' north and between longitudes 700-54' & 720-50' east and consists of five tehsils namely Ahmedpur East, Bahawalpur, Hasilpur, Khairpur Tamewali and Yazman. It lies almost at an hour’s southward drive from the historical city of Multan at an elevation of 152 meters from mean sea level. Because of the rapid expansion, land values in the city are also increasing instantaneously but variably at different locations of the city. To investigate the key determinants of residential land values in Bahawalpur, the study is based on both primary as well as secondary data. Primary data was collected through field survey using a predesigned questionnaire. This data includes the perceptions of people who are the actual users about the determinants of residential land values, and the information about residential land value which is actually in practice collected from the property dealers and residents of the Bahawalpur City. For the purpose of data collection, city was divided into three zones on the basis of accessibility, namely highly accessible areas, moderately accessible areas and areas of low accessibility. In addition to firsthand information, secondary data about population of the city and officially documented residential land values were collected from the district census reports and Tehsil Municipal Office (TMO) respectively. Land values have been measured in rupees (Rs) per Marla of land. Marla is a traditional unit of area measurement used in Pakistan, India and Bangladesh. Under British rule it was standardized to be equal to 272.25 square feet or 25.2929 square meters. It is equal to 160th of an acre. In most areas of Pakistan
17
Assessing determinants of residential land values in Bahawalpur city of Pakistan including Bahawalpur residential lands are measured in this unit. For making the of city map, computer software Arc-GIS was used.
Fig 2: Bahawalpur City RESULTS AND DISCUSSION Although mode of life of the people has been changed immensely over time, one of their prime needs has always been the place to reside. Obviously the places having proper amenities of life are preferred to build the residence. In order to meet the needs of growing population more and more residential land is required as well as acquired. As a result of increasing demand, the residential land values have strong tendency to rise under the influence of many factors. In the study area, key role in determining the residential land values is played by distance from CBD and ease of access. Accessibility can be further subdivided into distance from educational facilities, distance from health facilities, distance from open spaces, distance from entertainment zone, and distance from religious centers. Apart from this, availability of pure drinking water, security, size of plot, age of plot, date of development are also important factors which influence the residential land values. All these factors have significant impact on the residential land values. However, present study investigates mainly the role of distance from CBD and accessibility in determining the residential land values of Bahawalpur city.
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Khan, Usman and Khan CBD and Residential Land Values It is an old and widely held notion also pointed out earlier by Burges (1925) and Hoyt (1939) that CBD is the nucleus of the city which provides variety of services and urban growth occurs around it. However, later on it was noted that with the passage of time location of CBD tends to change and the number of CBDs may increase in a city. This means that there can be more than one CBD in the city which provide various services and facilities according to their nature as described by the Ullman and Harris (1945) in their Multiple Nuclei Theory. These CBD’s may be a commercial center like Chowk Bazaar in Bahawalpur city , educational center like the Islamia University and Quaid-i-Azam Medical college, health center like Bahawal Victoria Hospital, religious center like Jamia Mosque Sadiq or may be a cultural or entertainment zone of the city. The area located near the CBD undeniably has the high land values as compared to the area located away from the CBD. Land values also vary in terms of residential, commercial and agricultural land. These uses of land have different characteristics and influential factors that control the land values. Residential land values highly differ spatially and are consistently on rapid rise over the number of preceding years in Bahawalpur City. During field survey majority of the respondents opined that the distance from CBD has significant impact on the residential land values in Bahawalpur. Among them 62% argued that the residential land values tend to decease 3-6 times in ratio to increase in distance from the CBD while 18% of the them believed that there is a decrease of 7-9 times in residential land values as a fraction to increase in the distance from CBD. Only 16% and 4% respondents opined that decrease in residential land values occurs about 9-12 times and above 12 times respectively in relation to increase in distance from the CBD (Fig 3).
Fig 3: Impact of CBD on the Residential Land Values
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Assessing determinants of residential land values in Bahawalpur city of Pakistan Accessibility and Residential Land Values Ease of access has been noted another principal factor after the CBD that strongly influences the residential land values in Bahawalpur city. It is the measure of distance, or time consumed to reach various amenities or it may also be measured simply as the distance from the main road. The leading accessibility factors which influence the residential land values are; 1. Distance from Educational Facilities 2. Distance from Health Facilities 3. Distance from Open Spaces 4. Distance from Religious Centers 5. Distance from Entertainment Zone Although, at more or less level all these factors are working but first two are the foremost influential factors in case of Bahawalpur city. These factors are not uniformly distributed but still play a vital role in determining the land values of residential areas. In various parts of Bahawalpur city these facilities are available with varying distribution. The city is facilitated with a major hospital, Bahawal Victoria Hospital, located in the center of city and also serving as an educational institute for medical students. Similarly the The Islamia University of Bahawalpur, Sadiq Ejerton College, Sadqi Public School and Government Vocational Institute and number of Government and Private educational institutes serving the city at various direction but not too far away from each other. This distribution of educational institutes along with the health facilities has a significant impact on the residential land values. City is also decorated with the green spaces and entertainment zone for the inhabitants. During the study it was observed that most of the parks and entertainment zones are present in the North-Western and North Eastern parts of the city (Khan and Shafqat, 2014). Both these areas are high to middle class residential areas having high quality to moderate standard of life. These areas include the Model Town A, Model Town B, Model Town C, Qasim Town, Satellite Town, Muslim Town and the New Muslim Town. On the basis of accessibility three different residential zones namely highly accessible areas, moderately accessible areas, and areas of low accessibility have been identified with the significant variation in residential land values due to these factors (table 1). Residential Land Values in Highly Accessible Areas Two findings of the study are very significant in case of all the three accessibility zones and particularly in case of highly accessible areas and perhaps exist in almost all the cities of Pakistan. Firstly, there is a marked difference in actual (observed) and official (documented) prices of residential land (Fig 4 & 5). In some cases the difference is very high and prices in-practice are several times higher than that of official prices. This can be the either an indication of the rapid expansion of population in the city and resulting high demand of residential land or inefficiency and disorganization of planning and development
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Khan, Usman and Khan departments and of the departments which are responsible for the implementation of rules and regulations. Secondly, land prices are increasing very rapidly and data indicates very sharp rise within a time period of just a decade i.e. from 2003 to 2013 (table 2).
Table 1: Accessibility to various Amenities in Bahawalpur City Residential Zones Areas with High Accessibility
Areas with Moderate Accessibility
Areas with Low Accessibility
Areas Model Town A Model Town B Model Town C Qasim Town Satellite Town Muslim Town New Muslim Town Noor-ul-Haq Colony One-Unit Colony Rehman Colony Riaz Colony Muhalla Nawaban Muhalla Qazian Muhalla Qureshian Muhalla Chah Fateh Khan Muhalla Chirimar
Amenities Available Religious Zone Education Zone Health Zone Pocket Parks Entertainment Zone
Standard of Amenity High Standard of amenities as these are the high class residential areas
Religious Zone Education Zone Health Zone
Moderate Standard of amenities as these are the medium class residential areas
Religious Zone Education Zone
Low Standard of amenities as these are the lower class residential areas
From the Fig 4 it is obvious that the in 1998-2003 the actual land value in Model Town A was Rs300,000/Marla but the documented land value was only Rs30,000/Marla and there was a difference of Rs270,000. In Model Town B the actual land value was Rs200,000/Marla and the documented land value was only Rs21,600/Marla showing a difference of Rs178,400. During the same period, the actual land value in Model Town C was Rs150,000/Marla but the official land value was just Rs26,500/Marla telling the difference of Rs123,500. For Qasim Town the actual land value (Rs60,000/Marla) was three times higher than that of documented land value (Rs20,000/Marla). In Satellite Town the actual land value was Rs100,000/Marla but the documented land value was just Rs12,000/Marla (table 2).
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Assessing determinants of residential land values in Bahawalpur city of Pakistan 350000 300000 Rupees/Marla
250000 200000 Observed Land Values
150000
Documented Land Values 100000 50000 0 Model Town A Model Town B Model Town C Qasim Town Satellite Town Year 1998-2003
Fig 4: Comparison of actual and official residential land values in highly accessible areas (1998-2003) Fig 5 shows the comparison of actual and official residential land values in highly accessible areas that prevailed in 2013. In that time period the actual land value in Model Town A was Rs1,200,000/Marla but the documented value was only Rs270,000/Marla. In Model Town B the actual land value was Rs800,000/Marla but the documented value was only Rs230,000/Marla. In 2013 the actual land value in Model Town C was Rs700,000/Marla but the official land value was just Rs210,000/Marla. In Qasim Town the actual land value was Rs500,000/Marla and documented land value was merely Rs100,000/Marla. In Satellite Town the actual land value was Rs800,000/Marla in 2013 but the documented land value was just Rs130,000/Marla (table 2). 1400000 1200000 Rupees/Marla
1000000 800000 Observed Land Values
600000
Documented Land Values 400000 200000 0 Model Town A Model Town B Model Town C Qasim Town Satellite Town Year 2013
Fig 5: Comparison of actual and official residential land values in highly accessible areas (2013)
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Khan, Usman and Khan
Residential Land Values in Moderately Accessible Areas Although compared to highly accessible areas of the city, land values in the areas belonging to this category are not too high but almost similar trends of increase in the prices of land and difference between actual and officially documented prices of land are have been found (Fig 6 & 7). 120000
Rupees/Marla
100000 80000 60000
Observed Land Values Documented Land Value
40000 20000 0 Noor-ul-Haq Colony One Unit Colony Rehman Colony Year 1998-2003
Riaz Colony
Fig 6: Comparison of actual and official residential land values in moderately accessible areas (1998-2003)
600000
Rupess/Marla
500000 400000 300000
Observed Land Values Documented Land Value
200000 100000 0 Noor-ul-Haq Colony One Unit Colony Rehman Colony Year 2013
Riaz Colony
Fig 7: Comparison of actual and official residential land values in moderately accessible areas (2013) Fig 6 shows very significant difference between actual and documented prices of land in 1998-2003. The actual land value in Noor-ul-Haq Colony during this period of time was Rs50,000/Marla but the
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Assessing determinants of residential land values in Bahawalpur city of Pakistan documented land value was Rs19,200/Marla. In One-Unit Colony the actual land value in the same period was Rs100,000/Marla but the documented land value was only Rs12,000/Marla. In Rehman Colony the actual land value was Rs30,000/Marla and the documented land value was just Rs15,600/Marla. The actual land value in Riaz Colony was Rs30,000/Marla but the documented land value was merely Rs19,200/Marla (table 2). Fig 7 shows that again in 2013 after the interval of about ten years, the actual and documented land values of moderately accessible areas are highly variable. The actual land value in Noor-ul-Haq Colony was Rs350,000/Marla but the documented land value was Rs95,000/Marla.In One-Unit Colony the actual land value in 2013 was Rs500,000/Marla but the documented land value was only Rs110,000/Marla. In Rehman Colony the actual land value in 2013 was Rs450,000/Marla and the documented land value was just Rs98,000/Marla. The actual land value in Riaz Colony was Rs400,000/Marla but the documented land value was merely Rs98,000/Marla (table 2). Residential Land Values in Areas of Low Accessibility Even though compared to highly accessible and moderately accessible areas, the land values of most of the areas belonging to this zone are significantly low however almost similar trends in the prices increase and difference between actual and official prices are found (Fig 8&9).
Fig 8: Comparison of actual and official residential land values in areas of low accessibility (1998-2003) Fig8displays the fact that in 1998-2003 the actual land value in Muhalla Nawaban was Rs40,000/Marla but the documented value was only Rs19,200/Marla. In Muhalla Qazian the actual land value in this period was Rs60,000/Marla and the documented land value was Rs19,200/Marla. In Muhalla Qureshian the actual land value was
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Khan, Usman and Khan Rs70,000/Marla but the documented land value was only Rs19,200/Marla. In Muhalla Chah Fateh Khan the actual land value was Rs130,000/Marla in but the documented land value was Rs19,200/Marla.In 1998-2003 the actual land value in Muhalla Chirimar was Rs80,000/Marla but the documented land value was merely Rs18,000/Marla (table 2). These localities are very cogusted parts of the city facing several problems of serious nature such as there is no or poor sanitation sytem,streets are narrow and the problems of law and order and street crimesare increasing which need attension of concerned departments. Inspite of all these problems, residential land values in these areas are still high and always on the rise. This is due to their location near the old city bazar aswellas due to the rapid increase of population pressurein the city. All these muhallas were confined in the old walled-city but with the expansion of population they started to spread outside the walled- city as well. 600000
Rupees/Marla
500000 400000 300000 Observed Land Values 200000
Documented Land Value
100000 0 Muhalla Nawaban
Muhalla Qazia
Muhalla Qureshiya Year 2013
Muhalla Chah Fateh Khan
Muhalla Chirimar
Fig 9: Comparison of actual and official residential land values in areas of low accessibility (2013) Fig 9 shows that in 2013 the actual land value in Muhalla Nawaban was Rs200,000/Marla but the officialy documented land value was Rs114,000/Marla. In Muhalla Qazian the actual land value in 2013 was Rs300,000/Marla and the documented land value was Rs112,000/Marla. In Muhalla Qureshian the actual land value was Rs600,000/Marla but the documented land value was only Rs110,000/Marla. In 2013, the actual land value in Muhalla Chirimar was Rs400,000/Marla but the documented land value was merely Rs125,000/Marla. On comparing the land values of 2003 and 2013 (fig 8 & fig 9) it appears that there is a significant rise in the prices of land in the time perid of just a decade. This situation may help the researchers and urban planners to understand the story of increasing population pressure and urban growth in Bahawalpur city and its impact on land values.
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Assessing determinants of residential land values in Bahawalpur city of Pakistan Table 2: Difference between Actual and Official Land Values (Rs/Marla) of Different Localities of Accessibility Zones (1998-203 &2013) and Increase in Actual Land Values Accessibili ty zone/area
Residential areas
Actual Land values 19982003
Highly accessible areas
Model Town A
300,00 0 200,00 0 150,00 0 60,000
Model Town B Model Town C Qasim Town Satellite Town
Moderatel y accessible areas
Areas with Low Accessibili ty
Noor-ul-Haq Colony One-Unit Colony Rehman Colony
100,00 0 50,000 100,00 0 30,000
Riaz Colony
30,000
MuhallaNawaba n
40,000
MuhallaQazian
60,000
MuhallaQureshi an MuhallaChahFat eh Khan MuhallaChirima r
70,000 130,00 0 80,000
Offici al land value s 19982003 30,00 0 21,60 0 26,50 0 20,00 0 12,00 0 19,20 0 12,00 0 15,60 0 19,20 0 19,20 0
Differen ce
Actual Land values 2013
Officia l land values 2013
Differen ce
270,000
123,500
700,000
40,000
500,000
88,000
800,000
30,800
350,000
270,00 0 230,00 0 210,00 0 100,00 0 130,00 0 95,000
930,000
177,400
1,200,0 00 800,000
88,000
500,000
390,000
14,400
450,000
110,00 0 98,000
10,800
400,000
98,000
302,000
20,800
200,000
114,00 0
86,000
19,20 0 19,20 0 19,20 0 18,00 0
40,800
300,000
188,000
50,800
600,000
110,800
500,000
60,200
400,000
112,00 0 110,00 0 120,00 0 125,00 0
570,000 490,000 400,000 670,000 255,000
352,000
490,000 380,000 275,000
Increas e in actual land values in 10 years 900,00 0 600,00 550,00 0 440,00 0 700,00 0 300,00 400,00 0 420,00 0 370,00 0 160,00 0 240,00 0 530,00 0 370,00 0 320,00 0
Source: TMA Office Bahawalpur, and Interviews of Property Dealers and Resident of Bahawalpur Difference between Documented and Observed Residential Land Values (1998-2003 & 2013) The data about documented land values obtained from TMA office Bahawalpur and the data about observed values collected through field survey by interviewing property dealers and residents of Bahawalpur indicates marked differences (table 2). Observed values are those prices of land which are actually in-practice and actually exist and
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Khan, Usman and Khan charged for a piece of land in any area. But the documented values are those prices of land which are fixed by the concerned government departments. However, in case of Bahawalpur these prices are followed only in documents but not practically. This is why there is too much difference between observed values and documented values in the city. This difference is because people don’t tell the exact value to the Government when they buy or sale the land to save their money during registry of the land. In 1998-2003 the documented land value of Model Town A was only Rs270, 000/Marla while the actual price was around Rs1,200,000/Marla. Similarly there is a great difference between Government land values and actually in-practice land values of Model Town B, Model Town C, Satellite Town, Muhalla Qureshian etc.
CONCLUSION Based on the analysis of data gathered through different sources it has been concluded that the residential land values have been ever increasing but have increased most markedly from 1993 to 2013. Not only the distance from CBD is the main reason of increase in the residential land values but other factors under the shadow of accessibility in terms of provision of amenities are also playing a key role in increasing the residential land values in the Bahawalpur City. The high class residential areas enjoy the high standard of living as all the amenities are available within touching distance and as a result of high accessibility, the residential land values are on higher side. On the other hand middle class residential areas have the average facilities of life as the amenities like parks are not available in these areas therefore, they are associated with medium type residential land values. Low class residential areas like Islami Colony, Dilawar Colony, and various Muhallas located in the walled city have no such type of amenities. The general facilities like educational, religious and health centers are available but parks, green spaces and entertainment zones are not available therefore, these areas, except for those located near the old city bazaar, are associated with low residential land values. In these areas the streets are also narrow as compared to their other counterparts causing the problems of mobility which results in low residential land values.
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