Accessibility, Infrastructure Provision and Residential Land Value: Modelling the Relation Using Geographic Weighted Regression in the City of Rajkot, India

Abstract

Amenities and infrastructure provision in urban areas are essential for the sustainable future of cities in developing countries like India. Indian cities have large development deficits and find it challenging to bridge the gap using traditional methods. Provision of these facilities costs money, which is often not available. However, access to amenities and infrastructure adds to land premium, which, if captured, can be used to finance the provision of these facilities. In India, very little information is available on the value of accessibility and infrastructure provision, and thus, these indirect benefits are primarily ignored by urban planners. This study fills the gap by identifying these benefits using Rajkot city in India as a case study. A geographic weighted regression model is used to model the relationship. It is found that land price variation is explained to a good extent using the model. Estimates show that infrastructure and amenities have a substantial impact on land value, much higher than the cost required to provide these.