To what extent does the land value increase in proportion to the distance from the CBD in Edinburgh, comparison of the Bid rent theory?
| Candidate name: Theo Booth-Laure Candidate number:Center Number:Word count:2500
* To Mrs Winstanley for her encouragement and aid during the process of writing up the coursework
* To Stephen Farndon who help us whilst collecting the data in Edinburgh
* To Filippo Colonna and Felix Combreau who were constantly with me during the collection of the data
* To Jennifer Daniel for everlasting morale support
Table of Contents
A. Fieldwork question and geographic context3
Geographical context 5
B. Methods of investigation6
Primary research 6
Secondary research 7
Representing the data 7
Evaluating the methods 7
C. Data presentation8
Table of Average house selling price and asking price 8
Statistical analysis of data9
Graphs of trends in house prices as the distance from the CBD increases10 Maps of Edinburgh and Paris showing real estate value 11
Land usage survey; comparison between old and new town12
Land usage survey of hotels, restaurants and tourists point of interest 13 Amount of Hotels, restaurants and tourist points of interest per km² 14 Distribution of buildings and their usage in Edinburgh 15
Edinburgh Demographics 16
A. Fieldwork question and geographic context (473 words)
Traditionally land value is expected to be higher in urban areas than rural areas. Inside an urban area, land prices also vary. Many cities follow the same pattern with a few exceptions. As Edinburgh is a large, famous and historic city it’s expected to follow the same pattern of all traditional cities. This traditional pattern is the highest land prices will be in the CBD and decrease progressively as the distance increases from the CBD.
The results will be compared to the Bid rent theory, a geographical economic theory refering to how the price and demand for real estate changes as the distance from the Central Business District (CBD) increases. It states that: * Different land users will compete for land close to the city centre. Based upon the idea that retail establishments wish to maximize their profitability, therefore they’re more willing to pay more money for land close to the CBD and less for land further away from this area. * The theory is based upon the more accessible the area, the greater the concentration of customers, the more profitable. * Figure 1 shows a diagram of the bid rent theory with the five different zones of the city clearly labelled. Figure 2 shows the Bid-Rent theory showing the CBD in green where all the retailers are located, in Red where the manufacturing is located and blue where the residential areas are. It shows the price of land per m² with the highest point being in the CBD and decreasing gradually afterwards.
Figure 1. The different layers of the bid rent theory
Figure 2. Bid rent model
We expect land value to be higher in the CDB, because people who live there are closer to all the shops and the facilities a large city such as Edinburgh has to offer. As we leave the CBD we will expect the land value to fall as there is more space to build. According to his hypothesis we would expect high land prices in new town and old town shown on figure 2. We also expect to find some pockets of luxury suburbs with high land value and also deprived suburbs with low land value.
Therefore my hypothesis is as the distance from the CBD increases the land value decreases.
Not to scale
Not to scale
Figure 3. Map of the different districts in Edinburgh
Figure 3 shows different districts of Edinburgh. We will also see the differences of land value prices in this investigation in regard to the different districts. The Old town and the New town are considered to...
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