The document presents an analysis over time of the effects on land prices and the construction of the legalization of neighborhoods in the city of Bogotá. It was found that there is an anticipatory effect on land and construction prices caused by expectations about the urban development of the properties and the legal regularization of tenure. The nature of the legalization process provides the ideal conditions for generating these expectations in the market, given that due to its high degree of complexity, the process takes an average of four years prior to the issuance of the administrative act, as well as it is necessary to inform the land occupants on the regulatory changes to be developed and their legal and urban implications. The estimation of the difference-in-differences model suggests that the issuance of the administrative act itself drives the effects on land prices that started earlier, while a negative temporary shock occurs in the construction price. The study also highlights the importance of carrying out a differentiated analysis if the use of the property is residential or commercial, as well as if the procedure is traditional or if it involves regularization.
