Urbanisation is the defining phenomenon of this century, and thus urban containment is a key challenge. Land fragmentation and its possible negative effects on land use and devel¬opment are usually not taken into account. Multi-functionality appears from activities of stakeholders representing the interests of various sectors. Although the land use in an area is regulated through spatial planning system and set institutions, some externalities – e.g. aban¬doned areas and scarce engineering infrastructure – during the implementation of spatial development plans can be identified. These externalities may compromise sustainability in land development. Land development basically involves qualitative changes in land use, and thus intensifies it. If considering the fragmentation and the stakeholder’s interests to keep the multi-functionality, the implementation of urban development would be improved. This paper aims to explore a causational relation between land fragmentation, land use func¬tionality and land development. The study is based on comparative analysis by deploying basically quantitative methodology. The main outcome of the research shows the interrela¬tionship between three land-shaping attributes, which considerably influences the incremen¬tal urban development.