Does urban rail increase land value in emerging cities? Value uplift from Bangalore Metro

Document Type

Journal Article

Publication Date

2018

Subject Area

place - asia, place - urban, mode - rail, mode - subway/metro, land use - impacts, economics - value capture, economics - willingness to pay

Keywords

Urban rail, Land value capture, Emerging cities, Hedonic price model, Agglomeration economics

Abstract

This paper seeks to understand how urban rail can influence land value uplift, especially in emerging cities which are largely unstudied. It examines the Bangalore Metro and shows that the uplift from the metro rail was substantial in the ‘catchment area’ and ‘across the city’. The analysis was based on the panel data hedonic price model for around 160,000 apartments over the period 2012–16 and a cross-sectional data hedonic price model for 314,000 apartments in 2016. The panel data resulted in a stronger model and show significant land value increases, even beyond the traditional 500 m catchment. A ‘before’ and ‘after’ from the commencement of the metro rail operations shows a price uplift of 4.5% across the whole city and indicates a major agglomeration economic event resulting in substantial willingness to pay of USD 306 million from the metro rail accessibility. Emerging cities can expect metro rail to substantially improve their economies and other co-benefits as long as finance can be obtained by capturing this value.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Transportation Research Part A Home Page:

http://www.sciencedirect.com/science/journal/09658564

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