Implications of density bonus tool for urban planning: relaxing floor area ratio (FAR) regulations in Tehran

This article, by using empirical evidence from Tehran, looks beyond the West to explore the implications of the reliance of the entrepreneurial local government on private capital for the urban planning system. The main premise of this paper is that the financial dependence of Tehran Municipality on income generated from increasing construction density (density bonus tool) paid by developers has led to planning that is responsive to property market interests rather than the city’s strategic needs or the public interest. This paper makes a contribution to the literature of urban planning by providing a new case study of density bonus tool focused in Tehran; that allows a better understanding of the issue of how municipal financial tools (such as density bonus) could affect planning decisions