Land Use Agreements as an Instrument of Urban Densification – Planning and its Impact on Financial Flows in Espoo

Tapaustutkimus Espoo

Authors

• Tommi Henriksson Aalto -yliopisto

Keywords:

land use agreements, urban planning, land use policy, municipal finance, building typology

Abstract

This article examines the role of land use agreements in the context of densifying urban policy through a case study of Espoo. In Finland, land use agreements have become an established instrument for financing municipal infrastructure and shaping urban structure, while also reflecting political and institutional tensions. The study combines perspectives from institutional planning theory, agonistic political theory, and urban economics. Quantitative model calculations for two areas compare low-dense and high-intensity building typologies. The results show that while the distribution of value among landowners differs, the city’s fiscal outcomes remain broadly similar. In some contexts, low-dense typologies may prove at least as financially viable as high-intensity ones. The article argues for earlier and more transparent economic debate in planning processes, highlighting land use agreements as