Public value capture capacity in the urban renewal project process: Fikirtepe case

Abstract

Abstract Public value capture is defined as the capture of the increase in value that occurs as a result of plan decisions, changes in land-use functions and/or infrastructure investments. Despite the high-value capture capacity of urban renewal projects, value capture cannot be achieved in all urban renewal areas depending on differences in the projects. The aim of this study is to examine public value capture capacity in a renewal project area centrally located, offering high housing demand and supply, and enabling high development rights. The study is based on a scenario work in the Fikirtepe Urban Renewal Project in Istanbul (Turkey). In this study, public value capture capacity is examined by taking into consideration each stage in the urban renewal process. In the process, 'land contribution' from the land of property owners, and 'the infrastructure participation fee' are taken according to plan notes and these can be evaluated within the scope of public value capture. However, these are limited to only 1.8% of the total real estate value. The capturing of the public value remained quite limited in an urban renewal area such as Fikirtepe that has a high-value capture capacity. This hinders the economic viability of urban renewal projects.