The promise of charter cities to investors is that, if done right, they offer startup return multiples at real estate scale. The peril is that, if done wrong, they combine real estate capital requirements with startup failure rates. Interesting times indeed...
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Will be interesting to watch the evolution of the "minimum viable city". Curious tho, what gives charter cities "startup return multiples" that normal development deals don't have?
In theory, the premium for good governance is huge: consider the price difference between equivalent urban property in a bottom decile vs. top decile nation (using any reasonable metric). In practice, governance issues are endemic and getting permission to boost quality is hard.
