Revisiting Land Banking in the Era of Land Scarcity

The growing scarcity of land is a worldwide phenomenon. So too is the growth in the urbanisation of previously undeveloped land. EU countries are pressed to revise land policy approaches under the Green Deal regulations towards achieving No Net Land Take by 2050. A future lock-in of new land release can constrain the provision of public infrastructure, green public space, and affordable housing. This article argues for a renewed role of land banking for public-purpose land management. Past research has so far provided only a limited understanding of the role of land banking in land markets and how it contributes to generating public value in land use. Drawing on the theory of institutional economics, the article reviews international literature on land banking and assesses its contribution to sustainable development goals across national, regional, and local contexts. The evidence indicates that land banking can promote the achievement of multiple public goals, from brownfield reactivation and land value capture to nature restoration and soil remediation. Strategic land management via land banking can also mitigate the growing land scarcity constraints. When implemented in a context-sensitive manner, land banking can address the main critiques of state intervention and shape property markets for the public good.