Urban Land Value Capture in São Paulo, Addis Ababa, and Hyderabad

This paper presents analysis of the fiscal and equity impacts of urban land value capture instruments based on three case studies from the global south. These include the Lideta redevelopment in Addis Ababa, Ethiopia; the Outer Ring Road in Hyderabad, India; and Água Espraiada Urban Operation in São Paulo, Brazil. It combines desk research with interviews of local key informants with deep knowledge of the policy and market dynamics in the three cities and representing different perspectives. The analysis highlights the relevance of legal and planning processes (especially with respect to land tenure), available financial instruments, real estate market conditions and dynamics, and government capacity in both design and implementation of LVC. The cases show the importance of the following enabling factors as key to implementing LVC in an equitable manner: planning for equitable financing and risk mitigation from the beginning and not during or after implementation; transparent valuation based on updated property cadasters; the importance of capacity building, integrated planning, long term vision and political support, and shared responsibility and trust between public and private actors.

A revised version of this working paper was posted on April 7, 2020. The revision consists of minor edits made throughout the paper.