The market for land and natural resources is a single structure. In one way or another, it affects many of us. Therefore, you should know that here the meaning of the term "land" does not mean only some individual allotment, for example, for agricultural or housing construction purposes, but also includes a resource stored in the bowels in the form of mineral deposits. One of the divisions of this market is the land market itself, where government services and figures from various sectors of the economy come into contact: industrial, construction, mining, agriculture and processing.
It is a mistake to assume that only purchase and sale transactions are concluded here, as a result of which property rights are transferred from one person to another. Most of the contracts, the land market carries out only by transferring plots for use for a specified period - for rent. With this type of transaction, the owner does not lose his right of ownership, because such a type of calculation as the appointment of land rent begins to operate.
Under the terms of the lease law, the new owner receives property for temporary use. At the same time, transactions are regulated by the land market, rent in this caseassigned as the price for the ownership of the land. Lease relations are very wide and exist everywhere.
For example, there are states in which private ownership of land is not provided for by law. But this does not mean that there is no land market in them. Indeed, in this case, certain power structures transfer certain areas for economic activity for fixed-term or indefinite use, and the country's budget receives payments for this. Only various entities (both legal and physical) act as buyers, and representatives of the state act as sellers.
In order for the land market to develop, such functions as studying trends, forecasting, establishing investment attractiveness are necessary. Based on their data, interested parties find the criteria they are interested in to study proposals, select and compare different sites according to the estimated parameters.
The land market must be provided with legislative documents defining its main subjects.
For example, in Russia there are three groups of subjects:
- The first includes such representatives of power as the President of the country, the State Duma and the Federation Council, authorities and local self-government.
- Second - entities representing commercial and public structures.
- Third - individuals, families, nationalities and various civil associations.
The economic interest and the amount of income of the parties during the lease are determined by the value of the objects, the amount of investment risks and the estimated price of the site if it were put up for sale.
Pricing factors for land also have their own specifics and tools. But most often, the determining factor here is a comparative approach to similar transactions with sites in similar or similar conditions.
