The role of urban planning in creating urban land rent

The purpose of this study is to shed light on the relationship between urban planning and urban land rent that has transformed into a source for wealth and way of capital accumulation. This study bases on a historical?critical approach due to close historical ties between capitalist system and urban, urban land rent, urban planning.The formation of urban land rent is unavoidable until urbanization and private property will continue to exist. The differential rents and monopoly rents forming on urban land are difficult to prevent because of their sourcing from spatial differences of urban land itself. Beside this it is possible and necessary to prevent absolute rents that take source only from private ownership.In capitalist system, the actors which are efficient in creating urban space and land rent: they are capital owners, public sector and urban planning. Capital owners orient their capitals into urban space during excessive accumulation periods so that they both recover from the crisis and create new areas for the circulation of the capital. Such situations enable the absolute rent by means of speculations arose by private property owners and so that increase the total rents. The role of the government in creating urban space is to regulate common consumption areas in order to enable reproduction of labor force and establish the infrastructure of the areas where capital owners can make profit. Urban planning is the primary intervention means for regulations used by the government. Urban planning means ensuring the social compromise by creating projections which are rational and acceptable whereas they also comply with the demand governmental policies and demands of capital owners. It is possible to prevent urban land speculations, if provide more participation of city-dwellers to urban planning process by making reforms concerning urban planning processes in local authorities.Key Words:1.City2.Urban land3.Urban land rent4.Rent theories5.Urban planning