Conceptual Design of a Flood-Adjusted Land Value Index (FALVI) Methodology for Urban Areas: A Study Case at Bandung City, Indonesia

Addressing these water management challenges requires a comprehensive and integrated approach. Floods and other water-related challenges in urban areas can have an impact on land values. However, the lack of studies has developed a comprehensive index methodology related to examining floods and land value relationships for urban areas. Therefore, the main purpose of this study is to develop a comprehensive index methodology related to examining floods and land value relationships for urban areas that is called a Flood-Adjusted Land Value Index (FALVI) Methodology. This paper illustrates the importance of the proposed FALVI methodology to determine the relationship between flood events and land value. Important variables within three main aspects—environmental, socio, and historical flood variables—would be elaborated and measured by GIS-based analysis. It provides a more accurate and thorough assessment of property values by taking flood risk variables into account throughout the valuation process. This methodology is also regarded as an essential methodology for examining floods and land value links in metropolitan areas. FALVI can help guide government strategies on flood management, land use planning, and catastrophe risk reduction. By identifying high-risk locations, governments can prioritize flood mitigation measures and enact restrictions that prevent development in susceptible areas. Urban areas in certain watershed systems can be kept viable for the long term by carefully reviewing this methodology and implementing suitable land management strategies.