An Institutional Analysis of Property Development,Good Governance and Urban Sustainability

It can be argued that creating a reputation for sustainable development for the benefit of a competitive advantage resonates with institutional theory. In principle, this opens up the possibility to relate a given sustainability agenda with theoretical frameworks based on old institutional economics (OIE) and/or new institutional economics. This is particularly true in arenas where qualitative factors cause a discontinuous change from the previous structure, such as amid urban regeneration. Using empirical evidence from three very different European cities, Budapest, Amsterdam and Trondheim, it is shown that OIE has plenty to offer for a “patchy” and evolving problem area such as the analysis of planning and property development in an urban setting. The position taken here is that good community governance needs the support of the private sector too. Smart policies, regulations and especially incentives set at the local and regional levels are an imperative to meet the sustainability goals set out in the Rio-1992 agenda. This international comparison attempts to provide some guiding answers to the empirical question as to how sustainable the three cases of country- and city-specific governance are in terms of their property development.