Real estate prices and land use regulations: Evidence from the Law of Heights in Bogota

Between 2015 and 2017, the Law of Heights (Policy-562) regulated areas of urban renewal in specific locations of Bogota (Colombia). Using a novel dataset based on detailed information at the block level between 2008 and 2017, we study whether this policy affected real estate prices. Our empirical strategy compares the price per square meter before and after Policy-562 in treated blocks and in control blocks with similar pre-treatment traits. Results show that prices increased more in treated blocks than in the rest of the city. We also provide evidence that results are heterogeneous from a temporal, land use and strata point of view.