Sheet

LITERATURE STUDY
No 1
WHAT IS LAND VALUE CAPTURE ?

Land Value Capture (LVC) is a method of transit finance that recovers land value gains (an unearned
income) enjoyed by transit proximate properties, for transit project funding purposes.

Land Value Determinant Description

Land use regulation Government provision of
development rights or buildable
space on land through up zoning
Transport infrastructure projects embrace direct as well as in direct benefits: Public investments in social Social services and infrastructure
❖ The direct user benefits such as reduced travel time, but also indirect benefits services and infrastructure include: schools, hospitals, transit,
parks, etc.
such as land value increase, land use densification etc.
Private investments on land Land owner investments in on-site
❖ The benefits of transportation investments get capitalized in real estate market improvements construction and land improvements
in the short-term while land-use adjustments occur over longer term. Population growth and Increases in land value as a result of
❖ This potential to produce economic benefits has become important in decision- economic development the growth in population – due to
natural population growth, migration,
making process of the transport investment. and rapid urbanization – and
❖ The land value added due to the east west metro corridor can be used to fund Fig 2:Value curve Theory increases in income levels.
Source : Capturing the Value of Transit
other infrastructure in the city. By United States Department of Transportation

Figure 2 presents an example that illustrates how property values might increase over time as a result of new transit service. The impact of
NEED OF THE STUDY transit is expected to begin when a new transit project is first announced

❖ This study tries to build a relation among accessibility benefits ,impact on

MOST COMMON MODELS USED FOR DETERMINING ESTIMATING TRANSPORTATION-RELATED
proximate land use and land value gains.
BENEFITS AND DISBENEFITS AFFECTING RESIDENTIAL PROPERTY VALUES –
❖ The value appreciation varies from place to place influenced by various
parameters. The study identifies parameters that influence the scale of
increment in land values and the land value capture model that is most
appropriate for the transit corridor.
❖ Once the Land value capture method is recognized, it can be implemented for
similar areas.

Name: Shreekanya Baral Guide:

IMPACT ASSESMENT OF METRO CORRIDOR Reg. No.: 2180400092 Batch: 2017-19 Mr. Prasanth Vardhan
A CASE STUDY OF EAST WEST METRO CORRIDOR IN KOLKATA MURP II Year IV Sem, Seal
Dept. of Planning, SPA Vijayawada & Signature:
 Sheet
RESEARCH DESIGN
No 2
IMPACT ASSESMENT OF METRO CORRIDOR ON LAND VALUE PRICING
DATA REQUIREMENTS
❖ selling prices and locations of residential properties
AIM: To investigate the potential of Value Capture Mechanism and to suggest a suitable model of value capture ❖ property characteristics that may affect selling prices, such as
for the area of interest which can be used for other similar cases lot size, number and size of rooms, and number of
OBJECTIVES: bathrooms
• To study the most common practices of land value capture methods used for transit corridors. ❖ neighbourhood characteristics that may affect selling prices,
• Delineation of the influence area along the east west metro corridor such as property taxes, crime rates, and quality of schools
• To assess land value along the metro corridor at different points of time (i.e. Initial speculation period, Project ❖ accessibility characteristics that may affect prices, such as
formulation, During construction, Post completion). distances to work and availability of public transportation
• To find out the major variables that are affecting property market in the given area ❖ environmental characteristics that may affect price
• To arrive at the share of property market value increase due to the transit corridor
• To find the suitable land value capture method FUNCTION OF TIME
Property value from the date of inception of project till now
(2009-2019)
FUNCTION OF DISTANCE
Concept – What is accessibility? , relationship between transport investment and Land value, What is Value ❖ The price of properties within 500 metres of a rail station
Capture? ❖ The price of properties from 500 metres to 2km of a rail
Hypothesis - Accessibility improvement leads to gain in the proximate land values. station
Relevant theories identified - Land & its prices , Land rent theory , Land rent & land Use , Hedonic pricing ,
Micro economic theories Relevant theories identified
Land & its prices,Land rent theory, Hedonic pricing
Micro economic theories
Secondary Data

Literature Review Case Studies – Kolkata

1) Metro Rail transit system. Impacts on Land-Use in Bangalore,
India by Sagar Setia
2)Kolkata Metro Rail Corporation. Annual Report 2014-2015
3) Transit Value Capture Finance
A Global Review of Monetary Potential and Performance
4) Capturing the Value of Transit by CTOD

Techniques - Accessibility and Proximity levels , Qualitative analysis , Descriptive statistics , Regression analysis,
Hedonic pricing , GIS mapping techniques

Name: Shreekanya Baral Guide:

IMPACT ASSESMENT OF METRO CORRIDOR Reg. No.: 2180400092 Batch: 2017-19 Mr. Prasanth Vardhan
A CASE STUDY OF EAST WEST METRO CORRIDOR IN KOLKATA MURP II Year IV Sem, Seal
Dept. of Planning, SPA Vijayawada & Signature:
 Sheet
CASE STUDY AREA
SCOPE No 3
❖ The land value should been assessed through authorized officials and also by direct interaction with
developers ,real estate agents
❖ Value appreciation can be captured through change in ownership patterns , distance from CBD’s etc
LIMITATIONS
❖ To delineate the area and to limit the study to the delineated area
❖ The scope of study of socio economic, demography of the area is vast and should be narrowed
down.
RELEVANCE OF EAST WEST METRO
Twin cities of Kolkata and Howrah are dependent on each other for various functions such as education,
employment etc.
Kolkata dominates as the commercial and administrative hub while Howrah dominates as the industrial
centre.
There was no continuous connectivity between the twin cities. therefore, the east west metro corridor
plan provides optimum and hassle-free connectivity between the two.

PROPOSED E-W CORRIDOR PROFILE

To operate between Howrah Maidan& Sector V, Salt Lake Route length: 16.6km (10.8km underground
and 5.8 km elevated) Total Stations: 12 (6 underground and 6 elevated)

STUDY AREA STATIONS

Sector V station

REASONS FOR SELECTING THE PARTICULAR STATION

As per the as per VISION 2025 Sector V, Salt Lake has been identified as an industrial growth centre
&IT Hub, to cater to a population of 5 lakhs and provide employment to more than 1.2 lakh. The site is
within 1 km of the of the Sector V Station, Transit Oriented Development zone around it, having
densified development using metro as a catalyst

HOW TO DELINEATE THE AREA TOD focuses on creation of high density mixed
land use development in the influence zone of
transit stations, i.e. within the walking distance
of (500-800 m) transit station or along the
corridor in case the station spacing is about 1km

STUDY CARRIED OUT FOR THE STATION There are 3 zones along a transit namely :

❖ Land Value Increment as a Function of Time Intense zone – 500m

Project Inception Stage. Project Formulation Stage, Project Standard zone – 1000m
Construction Stage , Post Completion Stage , Full time period Transition zone – 2000m
Fig 2:TOD along Transit Stations
❖ Land Values as a Function of Distance from Metro
Source : National Transit Oriented Development (TOD) Policy

Name: Shreekanya Baral Guide:

IMPACT ASSESMENT OF METRO CORRIDOR Reg. No.: 2180400092 Batch: 2017-19 Mr. Prasanth Vardhan
A CASE STUDY OF EAST WEST METRO CORRIDOR IN KOLKATA MURP II Year IV Sem, Seal
Dept. of Planning, SPA Vijayawada & Signature: