The yield structure of income generating property by regions and neighbourhood in a purpose built capital city of a developing nation is to be focused for ascertainment of mere speculation, past works will be a guide and a good take off
Why would the structure of income generation be different in a DEVELOPED nation in the first place? Was Washington DC or Camberra built for mere speculative purposes? What makes a developing nation different in this case? Is Brasilia different? I know these are not answers, but your question suggests more questions. Maybe you should look into something like a mixture of Daron Acemoglu and David Harvey for an answer for your question.
Understanding the risk characteristics of buildings in their locales is key. Historical past performance is a useful guide if you can get hold of reliable data!
I agree hat the question is not perfectly formulated (what is the mechanism how property can generate income?), but I will try to give my partial answer.
First of all, capital city is always a kind of disequilibrium. In "equilibrium city" population is almost constant, and the necessity to build new housing is only to compensate depreciation. Huge price changes over time are unlikely (unless we have global speculation bubble like in 2008). Capital city has several reasons to grow: new employment by public sector can create in-migration of workers, then go their families and relatives. There is demand for new housing, with possibility for speculation.
You probably mean the following mechanism of income generation: to buy a flat when it is still cheap, and then to rent it out. With a growing city you can collect more money than you have invested, because flat valuation in growing city rises. You can look at my papers for such a mechanism on RG (where I address the model of optimal city size with growing land rent as price component):
"Modelling Functional Area and Commuting Flows", by O.Mascarilla-i-Miro & Y. Yegorov (2005)
"Potential and Spatial Structures of Population", by Y. Yegorov (2011)
The phenomenon of chain migration (movement of family members and relatives) is investigated in other paper (also on my RG):
"The dynamics of migration in the presence of chains"
Christian Helmenstein, Yury Yegorov (2000)
Yegorov, you are highly appreciated for this useful academic tips, would you please make these your related work be available for my reference? thanks
You can download all these papers from my RG page: https://www.researchgate.net/profile/Yuri_Yegorov/contributions (just go to p.2 or 4, they are ordered by year).
As for citing, you can do it like that:
1. Helmenstein C. , Yegorov Y. (2000) The Dynamics of Migration in the Presence of Chains, Journal of Economic Dynamics and Control, vol.24, p.307-323.
2. Mascarilla-i-Miro O., Yegorov Y. (2005) Modelling Functional Area and Commuting Flows, Cuadernos de Economia, vol.28, p.39-56.
3. Yegorov Y. (2011) Potential and Spatial Structures of Population, Proceedings of the 51st ERSA Congress, Barcelona, Spain, 30 August - 3 September 2011.
4. Yegorov Y. (2011) Migration as Driving Force for the Dynamics of Housing Rent, 51st ERSA Congress, Barcelona, Spain, 30 August - 3 September 2011
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