Land Value Capture's Potential

The paper discusses the potential for implementing Land Value Capture (LVC) strategies in Norway. In order to evaluate such a potential, case studies have been oriented both to look at a re-zoning’s effect on real estate value and to understand how private infrastructure contributions are gathered in Norway today. Methodology used is a literature review for establishing knowledge regarding LVC instruments, an analytical study regarding relevant Norwegian legislation for private infrastructure contributions, and a case study. The results show that several professionals, mainly real estate developers and academics, have been consulted regarding the matter throughout the work, as well as basic estimations and calculations have been carried out in the study. The land value of the properties assessed in the case study, which are a subject for re-zoning and a new local plan, turned out to be highly dependent of the utilization degree. The implications show a possibility to develop a new system for gathering private infrastructure contributions in Norway, based on replacing both development agreements and the infrastructure work up duty with a re-zoning fee, that captures plan made values, where the revenues shall be spent on nearby, necessary infrastructure measures. Keywords: Development agreement, LVC, private infrastructure contribution, re- zoning fee, Norway