Urban land value capture in São Paulo, Addis Ababa, and Hyderabad: Differing interpretations, equity impacts, and enabling conditions

Urban land value capture in São Paulo, Addis Ababa, and Hyderabad: Differing interpretations, equity impacts, and enabling conditions

This paper presents analysis of the fiscal and equity impacts of urban land value capture (LVC) 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. The paper 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 among public and private actors.