Synergizing Land Value Capture and Transit-Oriented Development: A Study of Bengaluru Metro
PRACTICE NOTEby , , , and -
The Government of Karnataka and the Bangalore Metro Rail Corporation are exploring ways to offset the heavy economic burden of expanding the metro rail transit network in Bengaluru. Land value capture (LVC) is a public financing strategy that can recover a portion of the real estate value that development along the metro corridor generates for private property owners. Deployed effectively, LVC can help fund the growth of mass transit and allied public infrastructure.
In Bengaluru, inherent shortcomings in planning, policy, and institutional frameworks prevent the market from optimizing the benefits of transit-oriented development (TOD), which in turn negatively impacts LVC. In this practice note, we first assess the potential for TOD and LVC to evolve in tandem with specific reference to the Bengaluru metro, and, second, posit strategies and recommendations to reorient policies to leverage TOD as an opportunity for LVC, and vice versa; and in doing so, strengthening the link between value capture and value creation.