Are Land Use and Development Changes Associated with Value Capture as a Result of Bus Rapid Transit (BRT) Investments?
There has been a rapid growth of bus rapid transit (BRT) systems in the world. Currently, more than 200 cities have this type of mass transportation system. Few studies have examined the association between BRT and land use changes in terms of value capture. What are the impacts of BRT systems on commercial and residential square meters over time? What are the impacts of BRT on cadaster appraisals per land use type over time? How does distance to BRT stations influence these changes? To what extent can positive associations of these impacts be linked to value capture mechanisms? This paper answers these questions with a difference in difference research design with a parcel level longitudinal data analysis approach between 2000 and 2013. This paper includes propensity score weighted regression models to examine the impacts of BRT on built-up area of commercial and residential uses and the impacts on cadaster values per square meters per land use type. Results of the data analysis suggests there are heterogeneous impacts of the first phase of the BRT system in Bogota on land uses, development and commercial appraisals over time. The paper found opposite impacts of BRT on land uses and development in relation to commercial and residential land uses. Commercial land uses show an increase of built-up area and commercial appraisal per square meters over time but with a higher concentration of development and values within an influence area of 100 meters from BRT stations. Residential land uses show a decrease of built-up area and commercial appraisal per square meters over time but with a higher concentration of development and values between 200 and 500 meters from BRT stations. These impacts suggest an increase of values by BRT investments that are not completely captured on appraisal assessments linked to property tax estimations.