Metro Rail Transit System Impacts On LandLand----useuse And Land Values In Bangalore, India Guided By: Presented By: Prof. H. M. Shivanand Swamy Sagar Setia Metro Rail Transit System Impacts OnOnOn LandLand- ---useuse And Land Values InInIn Bangalore, India • Background and Need of the Study • Concept Formation • Literature Review • Study Area Characteristics • Analysis Framework • Analysis • Conclusions Study Background & Need of the Study • The public transportation system does much more than merely carrying its citizens from one place to another - it plays a vital role in encouraging and controlling urban growth. • Transport infrastructure projects embrace direct as well as indirect 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 has become important in decision-making process of Study Background Background Study Study economic benefits the transport investment. • Accessibility benefits by improvement in public transport impetus to development and hence should be taken as an opportunity to develop the city. • 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. Need of the Study the of Need Research Question: What is the relationship between accessibility benefits, land use, built form densification and land value increments? Hypothesis: Accessibility improvement leads to gain in the proximate land values. Aim: The aim of the study is to assess the impacts of accessibility improvement on proximate land use and land values . The study also investigates the potential to capture value appreciation by Value Capture Mechanism. Objectives: 1. To assess land use changes and land value increment along the metro corridor at different points of time (i.e. Initial speculation period, Project formulation, During construction, Post completion). 2. To investigate Potential of value capture. Scope & Limitation : 1. The study is be limited to the delineated study area. The land value has been assessed through market guidance value gazettes and also by direct interaction with developers, real estate agents. 2. Value appreciation has been captured through change in accessibility, change in ownership patterns, land consolidations, number of transactions, distance from CBD’s etc. Concept Formation Land Value Database The market price is the price at which the actual transaction takes place. • Market Guidance Value Gazettes for the time period 1998- 2013 Registration value is the price at which the sale is registered. The guidance value is the published • Survey of real estate brokers, property agents to value below which the transaction identify real market values cannot take place . Land use Changes • 1998 Land use based on CDP and other literature Land use changes can be defined as • Existing Land use Plan(2004); RMP-2015 increase in land use mix at various • Land use details based on Property Tax Database 2007 scales , including mixing within a and 2011 (BBMP) building, along a street and within a • For 2014 Land use Primary Survey neighborhood/ area. • New Proposed development since 2004 (BBMP) Built Form Densification • 2007 Heights based on Property Tax Database 2007 Changes in Building heights, ability to (BBMP) use higher FSI • For 2014 Building Heights Primary Survey Literature Review Land Value ::: Theories, Determinants and Techniques • The land value is guided by the economic principle of the highest & best use which produces the highest net return over a period of time . • The property value of a plot includes, value of its land , structural specifications and other contextual attributes (land use, location etc.). • As construction cost of different components is uniform depending upon the quality, hence property value is a direct function of Land Value. Theories Determinants of Land Value Techniques to calculate land value 1. Land & its prices 1. Physical attributes of property change 1. Accessibility and Proximity levels 2. Land rent theory 2. Neighborhood attributes 2. Market activity & Business 3. Land rent & land Use 3. Availability of infrastructure competitiveness Surveys 4. Micro economic theories: 4. Nature of development a. Alonso’s model 5. Proportion of road width in context to 3. Qualitative analysis 4. Descriptive statistics b. Wingo’s model land use and building heights 6. Locational attributes and Transport 5. Regression analysis Linkages 6. Hedonic pricing 7. Economic factors 7. Transactional analysis 8. Supply and demand factors 8. Projected rate able values 9. Legal/ Government forces 9. Geographically weighted regression 10. Potential of future development 10. GIS mapping techniques 11. Social factors a) Inverse distance weighting (IDW) b) Kriging Techniques to calculate LLLandLand VVValueValue Change 1. Accessibility and Proximity Travel time thresholds with the use of a distance decay function is used to calculate for levels the improvement in the accessibility levels in terms of reduction in the travel time. 2. Market Activity & Business Assesses the market trends through business interviews, discussions with developers/ Competitiveness Surveys builders/regulatory agency, FGD’s. 3. Qualitative analysis Analysis such as environmental quality audits and other analyses provide complementary information. 4. Descriptive Statistics Various factors are cross tabulated with measures of change in travel and modal split (e.g. a correlation analysis). 5. Regression analysis Quantifies or establish a relationship among different sets of data . 6. Hedonic pricing assumes that the overall transaction prices are combination of different attributes, thus can be decomposed into components. 7. Transactional analysis Monitors changes in land values from actual transactions & requires time-series analysis of land values. 8. Projected rate able values Determines the way the market is likely to move in terms of yields, occupancy rates and the demand for different type of spaces. 9. GIS mapping techniques Create maps representing the level of accessibility both before and after the introduction of the public transport facility and calculates the relative change in accessibility and its impact on land values. a. Inverse Distance Weighting The principle underlying all surface interpolation methodologies is that entities that are found to be close together in geographical space are likely to be similar. b. Kriging the imputation function uses sample points to influence those in nearby locations rather than having a fixed mathematical function to determine values. Techniques used to Evaluate Impacts System details Methods used in studies Source apping Qualitative Analysis Descriptive Statistics Regression Pricing Hedonic Transactional Analysis Growth Assessment Projected Rate Values able M GIS Techniques Location Location Mode & Accessibility Proximity Surveys Cervero & Duncan (2002) Santa Clara LRT Hillier Parker (2002) London Crossrail Rail Chesterton (2002) London JLE Metro Pharoah (2002) London JLE Metro Hennebury (2002) Sheffield Supertram LRT RICS (2004) Croydon Tram Cervero & Kang (2011) Seoul BRTS PWC (2013) Delhi Metro This Research Bangalore Metro The Concept of Accessibility What is accessibility? • Accessibility is degree to which desired destinations are served . It is measured in terms of the availability of and proximity of primary destinations to transportation services (Towns, 1996). • Accessibility is referred to the ease in accessing transport infrastructure facilities or the impact on travel times from origin to other destinations (Thakur, 2009) • It is the extent to which land-use and transport systems enable individuals to reach activities or destinations by means of a (combination of) transport mode(s) (Geurs and Wee, 2004). Schema of structural relationship between transport investment and Land value Relationship • Landuse and transportation interactions are a dynamic process that includes spatial and temporal changes. • Development of transportation improves accessibility, thus it stimulates changes in land use pattern (Aravantinos, 2000 and Zhao et al., 2003) and escalate land values . • The firms adjust their locations to take advantage of the improved accessibility. While households also adjust location to maximize opportunities of employment, to reduce commuting cost etc. Adapted based on: RICS, D. f. (2002). Land value and public transport . Categorization of Transport Impacts & Its Threshold Impact Benefits 1. Mobility and Access Impacts Transit use in terms of level of use- such transit ridership, modal split; Travel time savings , Service availability, Service reliability , Service quality and Congestion reduction. 2. Economic & Financial Impacts Relative higher productivity and saving across the system, user cost savings . Induce Direct as well as Indirect Benefits . Indirect benefits include increment in land prices 3. Environmental and Energy Induce benefits such as reduced consumption of energy, reduced emissions and reduced Impacts exposure to noises. 4. Safety and Security Impacts Benefits are related to rider and non -rider safety,