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Bus Rapid Transit (BRT) has shown significant growth in recent years, particularly in developing countries because of its cost-effectiveness. However, empirical evidence on land-use and economic impacts of BRT is limited. This study measures the sustainable land-use transformation, urban density, and economic impact witnessed after the development of BRT. Spatial analysis shows that BRT has the potential to simulate land-use transformation, however, the extent of transformation is context-dependent. Population density has increased from 268 persons/acre to 299 persons/acre. Besides land-use transformations, inward investments and extension of the labor market were also evident in areas served by BRT. The amount almost equal to US $140 million of inward investment was detected after implementation of BRT, which ultimately brought around 800 new employees from remote areas. An efficient land-use policy, streamlining these land-use transformations, and inward investments, can benefit from developing compact and sustainable neighborhoods. This study will help in the performance evaluation of BRT systems in developing countries for sustainable development.
