The value of a piece of property, including both the value of the land itself as well as any improvements that have been made to it. Land values increase when demand for land exceeds the supply of available land, or if a particular piece of land has intrinsic value greater than neighboring areas (e.g. oil can be found on the land).
As we all know that land is fixed commodity .more the land in demand more its price increase this value is called rental value and other two factor are Capitalization Rate & Land Taxes.
Capitalization rate is a market determined rate of return .
Land Taxes is the portion of the land rental value that is claimed for the community.
These 3 factor decides the price of property
Depends on if they are in high demand. If no one likes the location, the value falls.
land is valuable because they aren't making any more of it. houses are valuable because no one wants to live in their car.
Because people want them. Simple supply and demand.
Food for thought?
