Land speculation that occurs on the urban border can be very problematic to the healthy development of cities—critical to economic growth. Speculative land investors, concerned with profits from trading in landed property, can especially affect developing countries where regulation is often poorly controlled and overly bureaucratic. An investigation into the factors motivating land speculators operating in the urban fringe of the city of Shashemene, Ethiopia is examined. The paper, in addition to contributing to the literature, is the second-known attempt and extension of the authors’ pilot research to study the behavior of land speculators in the urban fringe of a growing Ethiopian city. A theoretical framework and conceptual breakdown are put together with historical reference to early land speculation examples. Two questionnaires were separately administered with a representative random sample of 159 members from the local land developer association (i.e., investors) and 24 senior officials from the study area. A principal component analysis categorized the most significant dynamics in controlling land speculation procurements. Results indicated motivational reasoning as the prime cause for speculative activities. Evidence indicated that land speculation is a critical dynamic for self-worth especially with business-oriented persons. Entropy, the disorder of the communicative data, suggests a possible rethinking of the way government should intervene in the urban property market. As such, developmental smart cities in Ethiopia must thoroughly consider the dynamisms of speculative activities and its effects on local housing as it moves forward–in the 2020s.

The high demand for land provides land speculators the opportunity to hold land in anticipation of a price increase over time. Although the objective of the 1991 Land Use Statement was to test extra land speculation, the announcement has only been successful in fueling it. This study examines the role of land speculators around the outer edge of Shashemene’s metropolitan area. Primary data for this study was collected through a questionnaire with 73 respondents who were sampled using snowball sampling techniques. The chief findings of this study reveal that land speculation is still practiced in the study area, and the respondents affirmed they engage in speculation mostly for economic benefits.

Informality plays an imperative role in offering housing for households in developing countries when the formal market cannot provide enough to keep up with residents' demands. The actors' interaction, with one another, plays an imperative role in land transactions in informal settlement areas. As informal actors operate outside the formal land transactions their activities and methods of operation are rarely understood. Therefore, based on social network theory, this paper aims to identify and examine informal actors, their functions, interactions, and power relationships in informal settlement areas. To this end, this study employed key informant interviews, focus group discussions, structured questionnaires, and a review of published literature, as well as official documents. In the study area, most residents acquired land through informal mechanisms. Major actors include farmers, local land administrators, speculators, land brokers, residents, government officials, and religious leaders. The study also uncovers that the role of each actor varies from information provision to price fixing. Their roles and interactions are governed by dynamic networks and occasionally overlap functions. Among the network actors, land brokers are considered the most influential and powerful because they possess a high degree of centrality, closeness, betweenness, and eigenvector. They hold a pivotal position in the network and act as a liaison between the network's actors. Therefore, the roles of land brokers, who often actively influence the land transaction process, should be considered in urban land governance and incorporated in policy formulation and implementation.