The new planning institution consisting in the "extended" utilisation of development rights across the entire city, whatever the location of their origins, has an inbuilt contradiction: it moves in parallel with the financialization of the real estate sector, and therefore treats development rights as an homogeneous commodity, whereas they maintain an "immobile" nature linked to the specific origin site. The effects are huge: the institution implies an unjustified benefit for real estate traders and reduces public control on the process of urban transformation. The way in which it was introduced in the recent Milan master plan avoids some extreme drawbacks but presents the abovementioned contradictions that will jeopardise its operationality.
Keywords: Urban land rent, urban planning, transferable development rights.
Jel Code: R31, R38, R58.