New Research Reveals How Changing Land Use Policies Can Maximize Metro Benefits in Bengaluru

The findings suggest that Bengaluru’s metro system has the potential to greatly enhance the city’s economy and improve residents’ quality of life 

Bengaluru : A new research published in the Journal of Development Economics has revealed that Bengaluru’s metro system could significantly boost the city’s economy and residents’ well-being if accompanied by land use reforms. The researchers found out that while the metro system has already brought noticeable improvements, relaxing strict building height limits near metro stations could dramatically enhance these benefits.

Inaugurated in 2011, Bengaluru’s metro system has been a key component in the city’s strategy to improve public transportation. However, the study indicates that the full potential of these transit improvements has been limited due to strict height restrictions on buildings, even those close to metro stations. To improve urban planning and align it more closely with transport infrastructure investments, India’s central government has taken several initiatives to induce state governments. Among the most recent initiatives is a National Transit Oriented Development Policy, formulated in 2017, that provides states with guidelines and incentives to encourage densification along urban mass transit corridors and research that evaluates alternative urban planning norms is highly relevant for policymakers.

The researchers built a quantitative spatial model of Bengaluru using a comprehensive dataset. The study found that the metro has increased the city’s overall output net of construction costs by about 4.3% and welfare by approximately 1.3%. Yet, if building height restrictions were relaxed to allow for taller buildings near metro stations through a concept known as transit-oriented development (TOD), the output could go up by 14.7% and welfare by 3.4%. An alternative policy that  increases allowable development in central city areas regardless of proximity to metro stations could boost the output gains to 13.4% and welfare gains to 3.2%.

The study’s results have significant implications for urban planners and policymakers, not just in Bengaluru but in other rapidly growing cities around the world. The findings suggest that smart planning and policy adjustments are crucial to unlocking the full potential of urban transit systems.” stated one of the authors Andrii Parkhomenko, Assistant Professor, Department of Finance and Business Economics at the University of Southern California, Marshall School of Business“In India, keeping the high cost of metro systems in mind, it is important to understand how effectively the transit improves within-city mobility and provides wider economic benefits. Higher densities around transit allow workers greater access to jobs and employers greater access to employees. Yet, Indian cities impose strict controls on building heights through limits on floor-to-area ratios (FARs). However, low FARs can dampen the wider benefits of metro systems if they restrict residential and job densities.”

The researchers call for a re-evaluation of current land use regulations to better support public transit systems and improve city living conditions.