What is the relationship between economic development of a country and the land prices?
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Dorkus said,
Wrote on November 24, 2009 @ 8:45 am
HypnoRitual
There is no simple formula or relationship that could predict land value. I agree that land value depends on economic development; here are some other important factors that play a role:
1) Productivity - various factors (cropland, grazing land, industrial operations, residential areas) can often use the same land, and whoever can use the land most productively buys it.
2) Population density - some countries or cities are bounded by geographical restrictions, so the supply of land is very limited and prices rise relative to less dense areas.
3) Regulation - zoning laws in developed countries often artificially inflate the value of land. For instance, homeowners in growing cities can band together to limit the number of new homes that can be built, thereby raising their own property value.
4) Convenience - some land is more valued because of its access to railroads or highways, or other companies or services.
trolling_for_fundies said,
Wrote on November 25, 2009 @ 3:16 am
HypnoRitual
There’s definitely some positive correlation; however other factors like climate & geography can have some effect as well.
JimTO said,
Wrote on November 27, 2009 @ 1:08 pm
The Magic of Making Up
land is wealth. The more the land is worth, the more you can borrow and use the land as collateral. The money you borrrow can be invested in seeds, cattle, orchards, etc, to produce more and sell more, increasing your income. This assumes you have markets for your goods.
Nesbedusab said,
Wrote on November 28, 2009 @ 2:31 pm
How To Approach Any Woman, Anywhere
There is nothing called economic development except that some economists try to create this as an area of special,expertise since they could not develop expertise in the major areas of economics. Your question is simple if an economy grows faster will that impact the price of land. The simple answer is that if the aggregate scale of economic activities in a country expands, it will mean greater demand for land in most cases and that will raise the land prices. After all land is fixed quantity. If you need more lands for growth of an economy land prices will rise. But prices of all lands will not be the same. However, technological adavances can reduce the demand for land or increase the supply of land. For eaxample, large scale commercial farming can increase the output per acre of land. When such technological advances takes place, agricultural may release lot of land for industrial or other uses. Again, new economic activities like IT may require less land than the traditional industries for producing one unit of GDP. Here the deamand for land will rise less fater than the rate of economic growth. Of course, in most State controlled economies, the govts. do not, for absolutely no justifiable reason except to increase corruption, imposes lot of restrictions on purchase, sell and ownership of land. This can distort the market prices of land.