Abstract:
Urbanization has significantly influenced land demand, particularly in rapidly growing cities like
Kandy, Sri Lanka. As urban expansion accelerates, residential land scarcity has emerged as a critical
challenge, affecting housing affordability, infrastructure development, and sustainable land use.
This study aims to examine the challenges of residential land demand amid urban development in
the Kandy Municipal Council area and propose effective solutions. The study area, Kandy, a
historic and economically significant city in Sri Lanka, has experienced rapid urban growth in
recent years. With increasing population density, expanding commercial zones, and growing
infrastructure needs, the availability of land for residential purposes is shrinking. The KMC, which
governs urban planning and development, faces difficulties in balancing land demand with
environmental conservation and heritage preservation. This study employs a mixed-method
approach, combining interviews, questionnaires with random sampling methods (68). On the other
hand, Land Use and Land Cover Change analysis for understanding the transformation of land
use in the selected areas in KMC between 1998 and 2023, Spatial Interpolation Analysis
(Inverse Distance Weighted), was used to identify patterns in environmental changes,
illustrating areas most affected by land transformation, and Suitability Analysis also used to
evaluates suitable regions for sustainable land development based on environmental and socio
economic factors, ensuring effective land management strategies. The study highlights that rapid
urban expansion has led to an increase in residential land prices, reducing affordability for middle
and lower-income groups. Encroachments, unplanned developments, and inadequate regulatory
frameworks have exacerbated land scarcity. Furthermore, environmental constraints, including
hilly terrain and protected areas, limit the expansion of residential zones. The study also finds that
existing urban planning strategies struggle to accommodate the rising demand, leading to informal
settlements and inefficient land utilization. To address residential land scarcity, the study
recommends implementing comprehensive land-use planning strategies, promoting vertical
development, and enforcing stricter regulations on unplanned construction. Additionally,
enhancing public transportation and infrastructure in suburban areas could ease urban congestion and expand residential options. Introducing incentives for sustainable housing projects and improving governance mechanisms for land allocation are also crucial for mitigating future land shortages.