What Is Land Value Capture?

What Is Land Value Capture?

What Is Land Value Capture?

Land value capture is a policy mechanism that helps communities benefit from land value increases resulting from government investment, development, and other activities.

It ensures that any gains in land value stemming from public action – such as public infrastructure projects, zoning changes, or economic development initiatives – are reinvested back into the community, allowing citizens to benefit from local development directly.

The principle of land value capture is based upon the idea that public works should benefit the community instead of individual interests to create greater social and economic equity and encourage more inclusive growth.

How Many Types Of Land Value-Capturing Methods Are There In India?

In India, three methods for capturing the value of land are used, including a development-based approach, taxation-based approach and land-based approach.

The development-based approach involves increasing public access to land and services to increase the productivity of resources which generate more revenue from land when it is sold or leased.

On the other hand, taxation-based approaches involve imposing taxes on landowners with higher rates for speculation, inheritance or holding vacant plots in order to moderate prices.

Finally, the land-based approach centers around the idea that local governments should possess more autonomy over decisions about how land may be managed or used in order to create new economic opportunities while preserving existing rural and urban communities.

What Is A Land Adjustment?

Land adjustment is a process of fair distribution of costs and benefits resulting from projects between public bodies, landowners, and developers.

It often involves surrendering land for infrastructure or other public needs or reducing the cost of the infrastructure by selling it off.

This process is key to land readjustment as it ensures an equitable outcome for all parties involved.

What Are The Techniques For Valuing Land?

The comparative sales method of land valuation is the most reliable way of evaluating the value of a particular piece of land, as it compares its features and location to those of other recently-sold properties that are similar.

This method looks at factors such as shape, size, orientation, views, access, services and improvements made to the land such as buildings or fences. It also takes into account any natural features that may increase or decrease its value including water frontage, vegetation and minerals.

Other factors such as zoning restrictions and changes in local perception can also be factored into this type of assessment. By looking at comparable sales data from similar lands nearby, valuers can determine what the market rate for a particular piece of land is likely to be.

What Is A Value Capture Mechanism?

Value capture mechanisms are a way for the public to finance transportation investments. The idea is that increases in private land values caused by public projects are “captured” and used to repay the cost of the investment.

It’s an attractive option because it allows the government to take advantage of appreciation generated by infrastructure investments while limiting taxpayer costs.


This financing model can be used for both small-scale projects as well as larger-scale ones, making it a useful tool for governments when seeking additional funds for transportation projects.

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