MODEL FOR ASSESSING THE ECONOMIC POTENTIAL OF UNDERUTILIZED LAND IN URBAN AREAS

Abstract

The article examines the identification of the hidden economic potential of land plots in urban areas that exist but are not being used sufficiently effectively from an economic and social perspective amid rapid urbanization. The relevance of the issue is explained by increasing demand for urban land resources, the high cost of developing new areas, and the need to use existing urban infrastructure more efficiently. The article interprets underutilized land not merely as vacant space, but as an area being used less efficiently than its location, legal status, infrastructure provision, and market opportunities would allow. On this basis, the EPI (Economic Potential Index) model is proposed for the comprehensive assessment of the economic potential of land plots. The model combines location, infrastructure readiness, legal and planning status, market attractiveness, and environmental and redevelopment costs within a unified assessment system. The index is calculated on a scale of 0–100 points, making it possible to group land plots according to their priority levels. In addition, an approach to assessing economic benefits in monetary terms is developed by combining the index with the Potential Economic Value (PEV) indicator. The article also substantiates a mechanism for integrating the model with GIS, cadastral, urban planning, and market data.