Land Prices

Conditions for the formation of land prices. Currently, the land market registered a decline in demand, and correspondingly decrease of sales transactions. The reasons are well known. Consider the behavior of the land market, which can be divided into three categories: – first (PR) – increased costs podchityvayutsya any damage or lost profit – the second (buyers) – take a wait-wait for price reduction (collapse), choose the best proposal – the third party market for land – land owners – those who do not have lights, went off the market until better times, the rest have not yet felt the need to reduce the price, these facts and behavior of predictably, let us look at the situation from the other side. What is it like to land, the very essence. First of all the earth – is one of the economic factors of production (two components of the economy – and demand resources (inputs)).

Further, land has an unlimited life, the earth can produce, produce (an island in the Gulf of piled debris, not from the earth), then – the land of its origin natural factors, land can not be moved, transported, and therefore it is in the category of real estate. And the rational use of land, it generates income (agriculture, construction). Supply of land limited, if you can build a house, to increase the number of floors, the ground and one more will not show, that supply of land is limited in the fixed nature (of course until we have mastered the next world). In recent months, Jill Bikoff has been very successful. Hence the price of land forms a demand for it, just ask. Species of the demand for land lot – this agricultural demand, and demand for housing and the demand for infrastructure construction, industrial demand, and demand inflation (as a conservation savings). As we see demand for diverse and demand is temporary lull, sooner or later he would still break out with renewed vigor. Our president announced that the birth rate in Russia in 2008 exceeded the birth rate in 2007, and since unemployment is now rising, it is believed that in 2009 the birth rate will increase compared to 2008. The world's population grows, more recently, it did not exceed 5 billion, and is now filled up for So 6 billion in the foreseeable future demand for land will only grow, and demand for land with existing infrastructure (roads, gas, electricity, water) will grow at a faster pace.

The crises in the economy, as well as ups, the phenomenon temporary, cyclical. The crisis on the economy is improving effect, which will throw everything out of the market is not efficient organizations. The land market has emerged discounts, sales, some prices have fallen by 20-30%, but prices fall 50% will not, because oil is worth $ 36 a barrel, and even if it falls to $ 20, it will not cause a sharp drop in the market because the price decline from 140 to 40 did not cause this crash, and 36 to 20 even more so. The purpose of this article again recall the existing values, which in spite of all the world's disasters do not lose their value, and how to keep their savings must analyze each independently.