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Urban Planning and Housing Prices
Alain Bertaud was quoted in a recent article for place — a new website from the Thompson Reuters Foundation that is devoted to land use and urban issues. The article, by Rina Chandran, is titled: "Poor urban planning to blame for pricey housing and expanding slums, experts say". Bertaud, who was in Mumbai to deliver the convocation address at CEPT University, suggested that cities should make more effective use of markets to determine density and affordability.
“Poor planning regulations are responsible for unaffordable housing in many prosperous cities,” Bertaud told the Thomson Reuters Foundation.
He pointed to Mumbai’s Floor Space Index (FSI), which regulates the amount of floor space in a building relative to the size of the plot of land it sits on. The FSI in Mumbai is set fairly low, which means there is less space available for residences and businesses.
The policy has contributed to huge imbalances, said Bertaud.