Scholarly record

URBAN PLANNING AS A GENERATOR OF LAND VALUE: OPPORTUNITIES FOR VALUE CAPTURE IN BULGARIA

Nadezhda Yarlovska, Sia Veleva

Abstract

The role of urban planning as a driver of land value creation is examined, with particular attention to the mechanisms through which this value may be captured for public benefit. The study analyses the relationship between planning decisions, the regulatory framework, and land value dynamics in the Bulgarian context, applying the OECD-Lincoln analytical framework to systematically examine the processes of value creation, capture, and redistribution.To this end, the theoretical foundations of land value formation are analyzed; the development of urban planning in Bulgaria over approximately the past century is traced; international experience in the application of land value capture instruments is reviewed; existing mechanisms are systematized; institutional and regulatory constraints are identified; and directions for their improvement are proposed. The research is based on a qualitative and comparative approach, combining a review of scientific literature, historical analysis, and an assessment of policies and instruments. The principal results indicate that urban planning in Bulgaria leads to a significant increase in land values, particularly in rapidly urbanizing areas, while effective mechanisms for capturing this value remain limited. The analysis further reveals a mismatch between public investments and private gains, which constrains infrastructure financing and the implementation of planning provisions. It is concluded that the development of land value capture mechanisms could enhance the financial capacity of municipalities and support more effective urban development. Directions are proposed for the adaptation of international practices and the development of instruments tailored to the Bulgarian institutional context.

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