LITERATURE STUDY Sheet 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 Public investments in social services and infrastructure Social services and infrastructure include: schools, hospitals, transit, parks, etc. Private investments on land improvements Land owner investments in on-site construction and land improvements Population growth and economic development Increases in land value as a result of the growth in population – due to natural population growth, migration, and rapid urbanization – and increases in income levels. Transport infrastructure projects embrace direct as well as in direct benefits: ❖ The direct user benefits such as reduced travel time, but also indirect benefits such as land value increase, land use densification etc. ❖ The benefits of transportation investments get capitalized in real estate market in the short-term while land-use adjustments occur over longer term. ❖ This potential to produce economic benefits has become important in decisionmaking process of the transport investment. ❖ The land value added due to the east west metro corridor can be used to fund other infrastructure in the city. Fig 2:Value curve Theory Source : Capturing the Value of Transit By United States Department of Transportation NEED OF THE STUDY Figure 2 presents an example that illustrates how property values might increase over time as a result of new transit service. The impact of 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 proximate land use and land value gains. ❖ 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. MOST COMMON MODELS USED FOR DETERMINING ESTIMATING TRANSPORTATION-RELATED BENEFITS AND DISBENEFITS AFFECTING RESIDENTIAL PROPERTY VALUES – IMPACT ASSESMENT OF METRO CORRIDOR A CASE STUDY OF EAST WEST METRO CORRIDOR IN KOLKATA Name: Shreekanya Baral Reg. No.: 2180400092 Batch: 2017-19 MURP II Year IV Sem, Dept. of Planning, SPA Vijayawada Guide: Mr. Prasanth Vardhan Seal & Signature: RESEARCH DESIGN IMPACT ASSESMENT OF METRO CORRIDOR ON LAND VALUE PRICING AIM: To investigate the potential of Value Capture Mechanism and to suggest a suitable model of value capture for the area of interest which can be used for other similar cases OBJECTIVES: • To study the most common practices of land value capture methods used for transit corridors. • Delineation of the influence area along the east west metro corridor • To assess land value along the metro corridor at different points of time (i.e. Initial speculation period, Project formulation, During construction, Post completion). • To find out the major variables that are affecting property market in the given area • To arrive at the share of property market value increase due to the transit corridor • To find the suitable land value capture method Concept – What is accessibility? , relationship between transport investment and Land value, What is Value Capture? Hypothesis - Accessibility improvement leads to gain in the proximate land values. Relevant theories identified - Land & its prices , Land rent theory , Land rent & land Use , Hedonic pricing , Micro economic theories Sheet No 2 DATA REQUIREMENTS ❖ selling prices and locations of residential properties ❖ property characteristics that may affect selling prices, such as lot size, number and size of rooms, and number of bathrooms ❖ neighbourhood characteristics that may affect selling prices, such as property taxes, crime rates, and quality of schools ❖ accessibility characteristics that may affect prices, such as distances to work and availability of public transportation ❖ environmental characteristics that may affect price FUNCTION OF TIME Property value from the date of inception of project till now (2009-2019) FUNCTION OF DISTANCE ❖ The price of properties within 500 metres of a rail station ❖ The price of properties from 500 metres to 2km of a rail station Relevant theories identified Land & its prices,Land rent theory, Hedonic pricing Micro economic theories Secondary Data Literature Review 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 Case Studies – Kolkata Techniques - Accessibility and Proximity levels , Qualitative analysis , Descriptive statistics , Regression analysis, Hedonic pricing , GIS mapping techniques IMPACT ASSESMENT OF METRO CORRIDOR A CASE STUDY OF EAST WEST METRO CORRIDOR IN KOLKATA Name: Shreekanya Baral Reg. No.: 2180400092 Batch: 2017-19 MURP II Year IV Sem, Dept. of Planning, SPA Vijayawada Guide: Mr. Prasanth Vardhan Seal & Signature: CASE STUDY AREA Sheet No 3 SCOPE ❖ 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 Project Inception Stage. Project Formulation Stage, Project Construction Stage , Post Completion Stage , Full time period Intense zone – 500m Standard zone – 1000m Transition zone – 2000m ❖ Land Values as a Function of Distance from Metro Fig 2:TOD along Transit Stations Source : National Transit Oriented Development (TOD) Policy IMPACT ASSESMENT OF METRO CORRIDOR A CASE STUDY OF EAST WEST METRO CORRIDOR IN KOLKATA Name: Shreekanya Baral Reg. No.: 2180400092 Batch: 2017-19 MURP II Year IV Sem, Dept. of Planning, SPA Vijayawada Guide: Mr. Prasanth Vardhan Seal & Signature:
