Land speculation that occurs on the urban border can be very problematic to the healthy development of cities—critical to economic growth. Speculative land investors, concerned with profits from trading in landed property, can especially affect developing countries where regulation is often poorly controlled and overly bureaucratic. An investigation into the factors motivating land speculators operating in the urban fringe of the city of Shashemene, Ethiopia is examined. The paper, in addition to contributing to the literature, is the second-known attempt and extension of the authors’ pilot research to study the behavior of land speculators in the urban fringe of a growing Ethiopian city. A theoretical framework and conceptual breakdown are put together with historical reference to early land speculation examples. Two questionnaires were separately administered with a representative random sample of 159 members from the local land developer association (i.e., investors) and 24 senior officials from the study area. A principal component analysis categorized the most significant dynamics in controlling land speculation procurements. Results indicated motivational reasoning as the prime cause for speculative activities. Evidence indicated that land speculation is a critical dynamic for self-worth especially with business-oriented persons. Entropy, the disorder of the communicative data, suggests a possible rethinking of the way government should intervene in the urban property market. As such, developmental smart cities in Ethiopia must thoroughly consider the dynamisms of speculative activities and its effects on local housing as it moves forward–in the 2020s.
The high demand for land provides land speculators the opportunity to hold land in anticipation of a price increase over time. Although the objective of the 1993 Land Use Statement was to test extra land speculation, the announcement has only been successful in fueling it. This study examines the role of land speculators around the outer edge of Shashemene's metropolitan area. Primary data for this study was collected through a questionnaire with 73 respondents who were sampled using snowball sampling techniques. The chief findings of this study reveal that land speculation is still practiced in the study area, and the respondents affirmed that land speculators engaged in land speculation mostly for economic benefits.
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