Urban Development Policy Making

Urban Development Policy Making

Studying Successful Urban Investment Models In Developed Countries With An Emphasis On Innovative Approaches: Developing A Proposed Model For Tehran Municipality

Document Type : Original Article

Authors
Masoud Reza Rabiei Beheshti 1
Mohammad Reza Latifi Sabet 2
1 Master of Science in Theoretical Economics, Faculty of Economic and Political Sciences, Shahid Beheshti University, Tehran, Iran
2 , PhD Student in Economic Sciences, Urban and Regional Economics, Faculty of Economics, Management and Accounting, Yazd University, Iran
10.22034/judpm.2025.537238.1056
Abstract
With increasing urbanization and mounting pressure on the financial resources of cities—especially in developing countries—it is vital to develop innovative urban investment models. This study adopts a comparative approach to analyze successful urban investment practices in countries with advanced urban economies, such as Germany, the Netherlands, South Korea, the United Kingdom, Singapore, and Japan. Drawing on these case studies, the research aims to present a localized policy framework for the Municipality of Tehran.
Amid rapid urbanization (urban population rising from 35% in 1950 to over 55% in 2015 and projected to reach 66% by 2050), many cities face severe fiscal constraints. Although Tehran’s municipal revenues grew from 84,617 billion rials in 2011 to 2,056,589 billion rials in 2025, the share of financing through investment has remained marginal—averaging just 1.2% over fourteen years, with a peak of only 3% in 2012. This underscores the need for more effective investment strategies. The study identifies four key components of successful urban investment: (1) institutional and legal frameworks, (2) innovative financial instruments, (3) stakeholder collaboration, and (4) data-driven governance. Based on these pillars, it proposes the "Smart Investable City Model" for Tehran. This model aims to increase investment-based financing, enhance financial self-reliance, and promote participatory, transparent development.
Keywords
Circular Urban Economy (CUE)
Innovative Financial Instruments
Land Value Capture (LVC)
Public-private partnership (PPP)
Sustainable Urban Investment
Urban Policymaking

Subjects

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Urban Development Policy Making
Volume 3, Issue 1
Spring 2026
Pages 33-50

  • Receive Date 23 July 2025
  • Revise Date 02 September 2025
  • Accept Date 17 November 2025
  • Publish Date 31 March 2026