Does urban rail increase land value in emerging cities? Value uplift from Bangalore Metro (original) (raw)
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Railway Financing via Urban Development
WIT Transactions on the Built Environment, 2018
Railway projects are extremely expensive and long-lasting investments. Most countries are facing difficulties funding these projects from their national budget. Such projects clearly have an impact on land use and land value. Literature shows that property and land values increase after a transport investment is made in a particular corridor. Rail system projects have the highest impact on property values, because they increase accessibility to urban areas. Rail system projects are becoming very popular in Turkey, especially in Istanbul, one of the most important and most populated cities in Turkey. Existing road, sea and rail transport systems are not sufficient to meet the demand for mobility in the city. Since urban public transport systems rarely make a profit, they do not attract private investors. Furthermore, it is not possible to pay for all rail system investments from public funds. This paper aims to develop a new model for the financing of rail systems in Turkey. The main aim is to calculate with a Hedonic Pricing model the impact of the proximity of a property to a station of a rail system on the value of that property, and then to reflect this impact on a proposed rail system project in Istanbul. In the Hedonic Pricing model, properties are characterized by their composite attributes, thus the value of a property can be calculated by adding up the estimated value of all its separate attributes. This model makes it possible to calculate the impact of each and every attribute of a property on its value. In this study the distance to a metro station is the primary attribute with other structural features also affecting property value. The model is run with 11 attributes. As a result of this model a coefficient can be calculated that relates to the impact of distance to a station on the value of the property. As a further research, recommendations will be developed to use this calculated value in the financing of railway project.
Innovative Financing for Urban Rail in Indian Cities: Land-based Strategic Value Capture Mechanisms
2017
Cities worldwide are seeking to build new urban rail as a sustainable mobility solution. All Indian cities with over 1million population, are contemplating to build new urban rail and operational metro rail lines have significant expansion plans. All projects have political and policy pushes but are limited by funds. This research has therefore proposed a new funding system involving land-based ‘strategic value capture' (VC) mechanisms to finance urban rail for Indian cities. The research hypotheses are: first, urban rail driven accessibility improvement leads to gain in land value uplift; second, urban rail projects can be financed through a VC mechanism; third, the frameworks can be applied to other emerging cities. Literature from global best practices identified the key challenges and opportunities for Indian cities to apply VC concepts. Many cities report lack of knowledge on VC concepts and their implementation but the potential is obvious as stakeholders are willing to pa...
The impact of rail transit investment on the residential property values in developing countries
Property Management, 2006
PurposeThe purpose of this paper is to test whether the rail transit investment in Izmir, Turkey has had positive valuation impacts on the surrounding residential properties, and to estimate the value of travel time using relevant parameters.Design/methodology/approachThe necessary data were collected via a survey including all real‐estate agents in the area. To test the research question, the Hedonic Price Model (HPM) is used as the research technique. The obtained parameters are also used to estimate the value of travel time.FindingsThe findings of the models has indicated that the proximity to rail stations was valued at 250‐300permeters,andthevalueoftravelperhourwas250‐300 per meters, and the value of travel per hour was 250‐300permeters,andthevalueoftravelperhourwas1.47‐1.83 on average.Research limitations/implicationsThese findings should be checked with more consistent database using transaction process, and the mortgage loan rate which was not legislated at the time of study.Practical implicationsUntil a mortgage loan rate is registered in turkey, the estimated p...
The short-term land value impacts of urban rail transit: Quantitative evidence from Sunderland, UK
Land Use Policy, 2007
Experience of light rail, metro and other urban rail transit schemes shows they can play a significant role in improving the attractiveness and quality of urban public transport. In terms of the high cost of rail transit systems, land value capture has drawn increasing attention as a result of its potential for funding public transport infrastructure. To evaluate its potential success, it is crucial to examine critically the impact of public transport on land value before approaching the question of land value capture.
Journal of Transport Geography , 2011
"Light rail, metro and other urban rail transit systems can play a significant role in improving the attractiveness and quality of urban public transport. They can influence the attractiveness of locations near the stations and improve accessibility for these locations. Furthermore urban rail can improve a location’s attractiveness by its image effect: it makes a station appear modern and dynamic, and thus raises the status of this location. This paper summarises findings on the land-use and economic impacts of the urban rail system of the city of Naples over time and space. It examines changes in residential and non-residential (offices and retail) property prices around the newly built stations between 2001 and 2008 as well as the changes in the number of residents for the same station catchment areas. Ad hoc station control areas have been specified in order to compare the results of these changes. Results show that values in station control areas are lower than those of those of the stations catchment areas."""
Rail Transit Investments, Real Estate Values, and Land Use Change: A Comparative Analysis of Five …
Chapter One: Introduction I 1 Chapter Two: Theoretical Foundations and Literature Review 2 I 2 2 2.3 2 4 2.5 Summary Chapter Three: Wa2 Transit Access and Single-Family Home Prices 3 I 3 2 3.3 Three Light ?&ad Systems 3 4 Caveats and Conclusions Chapter Four: Rail Transit and Commercial Property Values 4 1 DataIssues 4 2 4 3 4.4 Summary and Caveats Chapeer Five: aail Transit Investments and Station Area h d Use Changes: 1965-1990 5 1 5 2 5 3 5 4
Effects of Rail Transit on Residential Property Values
Transportation Research Record: Journal of the Transportation Research Board, 2014
The impacts of a rail transit system on residential property values have been examined for many metropolitan areas in the United States, China, and other countries, yet there have been few comparison studies between countries. Studies have reported both the positive effects of rail transit resulting from improved accessibility as well as the nuisance effects from noise, pollution, crime, and unsightliness. The net effects of a rail transit system could be mixed, and there has been no agreement on which would dominate. This study used METRORail in Houston, Texas, and the Metro in Shanghai, China, as empirical cases and compared their effects on nearby residential property values. A hedonic price model with ordinary linear regression was used in the case study of Shanghai's rail transit lines. The Houston case study applied ordinary linear regression and multilevel regression techniques to examine the hierarchical structures of spatial data explicitly. The modeling results from bo...
Investigation of the impact of railways on housing values; the case of Istanbul, Turkey
International Journal of Transport Development and Integration, 2019
Housing units located near transportation facilities tend to have a higher market value than those that are at a greater distance to transport facilities but have similar characteristics. Provision of public infrastructure has a great impact on urban areas, especially on urban development patterns, spatial distribution of urban land use and real estate values. Mass transit systems are one of the most important public infrastructures in cities. Mass transit operations have a significant effect on property values, since they increase accessibility in urban areas. Railway projects are long-lasting investments and by their nature are extremely expensive when compared to other land transportation modes. It is not always possible or reasonable for many countries to fund these high-price projects only with their national budget generated by taxes collected from all citizens. Literature suggests that property values tend to rise in parallel to land values after any kind of public infrastructure investment. Nowadays transportation, especially railway system investments, is regarded as the most important public infrastructure in urban areas impacting land values maximally. Railway investments are becoming widespread in Turkey, especially in Istanbul as Istanbul is the most important and most populated city in country. As due to their high operation costs urban public transport systems, especially railway systems, rarely make a profit, private investors are not willing to get involved in these projects. Furthermore, it is not possible to finance all rail system investments from public funds. This article aims to prove the impact of railway systems on housing values and investigate the possibility of internalizing this increased value for financing railway investments. The main objective of this article is to calculate the impact of distance to a railway station on the value of properties by using the hedonic price model on an existing railway corridor and applying this anticipated impact on a proposed railway corridor. Finally, the calculated value is used as a preliminary basis as a funding model for railway projects in developing countries like Turkey.