It is often argued that investments in infrastructure development improve the accessibility of the locations connected to the infrastructure, with the result that property values in those locations increase. However, such an argument needs to be tested through empirical research by exploring the institutional framework and land use planning and development practice. By capturing value increase, it should be used for specific purposes in the way that would lead to finding equity solutions in implementation of infrastructure projects. Accordingly, the interests between private developers and local society have to be balanced as well as fair decision-making towards covering development costs and absorbing the value surplus pro¬moted. The purpose of the study is to give an overview of the land value capture (LVC) as well as to discuss how balanced is the socio-economic development and what is the institu¬tional environment supporting it in Latvia. The competence of local authorities and spatial planning system have been analysed in the study. Direct and indirect models, which are used for the absorption of the surplus value of developed land, have been observed in the study. The outcome of the research shows an interim conclusion for Latvia that can contribute to an extended study and comparative research to get an overview of public value capture across Europe.