Paper short abstract:

Land Readjustment, an essential tool for land management, is part of the new urban law of Peru. One of the countries most affected by rapid urbanization. Then, this text will explore how dwellers could be included in a new urban development after testing the tool implementation.

Paper long abstract:

Thousands of citizens have been living with inadequate access to basic public service, lack of urban facilities and disproportionate exposure to risks in the informal settlement denominated Parque Porcino for the last fifty years. In that context, and after many trials to implement slum upgrading programs, the government of Peru, in 2021, released the new sustainable urban development law which contains, among other mechanisms, the land readjustment instrument. Essential tool for land management that allows the equitable distribution of land value and encourages citizen involvement in the urban development process. Thus, this research addresses the following question: ¿In what scenarios would the tool be functional to address the urban renewal of the informal settlement? To answer this question quantitative data was gathered and analysed on urban sprawl, the mechanisms implemented for territorial planning, and the gaps in urban infrastructure in the last two decades. Correspondingly to support the question, the text compares the theory of the tool with international experiences. The findings indicate that the sole application of the instrument is deficient in the scenario of delivering social housing since this infrastructure is not an asset whose prices are determined in the land market. However, the tool is capable of integrating slums into a new urban fabric facilitating the provision of services and urban facilities. Then, the mechanism conditions its implementation to the prior approval of other planning tools. Besides, the implementation success is susceptible to the lack of land market regulations.