Town Planning

It is no secret that the approach to the assessment of property in our country and abroad is different. Outside of our vast country, the most widespread theory of land prices offered by W. Alonso, which concerns supply and demand for land located within the city. This theory is based on the economic concept of obtaining citizens or business the maximum benefit under the income they possess. W. Alonso calculated and graphically depicted the curves of the solvency of families, reflecting the cost of land (including its distance from the center) that one or another family willing to pay, while maintaining the same level life. In the same way he analyzed the location of enterprises (factories, plants, etc.) relative to the distance from the center in accordance with the cost of land, provided they retain the maximum level of profits. This profitability is represented on the one hand, the difference between the total value of goods sold, on the other hand, costs of production and cost of land. Land bordering the urban areas, can be purchased under construction costs, only slightly above the price of the same land, if it will be used for agricultural purposes. In fact, prices in these areas many times higher than rates for agricultural land. Alonso believes that the main criterion for the assessment of land is the greatest profit, it may make. In this case, the land rent is calculated as the capitalized income by multiplying the profit for several years at the rate percent. In 70-ies. American Institute of Town Planning undertook a detailed study to determine the influence of public investment in land values in urban environments. As a result, were divided into 3 groups of factors, determining the value of the land: physical factors (location in the city plan, plot sizes, the length of the front line, geotechnical conditions), economic (the total revenue from this area plus investment), administrative (legal acts on the division of urban areas into zones that contain administrative limitations in the possibility of the location of individual objects).

French economist Dyutayn exploring The pricing mechanism is in Paris and its suburbs, has concluded that in order to buy land, its price varies between two extremes – the lowest price, which is formed on the basis of real income area, and maximum value of the price that a potential user is able to pay in accordance with the terms of construction, anticipated revenue from new buildings, excluding the costs of their construction and related expenses. According to U.S. experts, the share of direct part in the assessment of real estate is 30 – 40%. The price of land largely determines the form of its operation. Often, large areas in the centers of big cities are busy business centers, trade halls, office building of large firms. The high cost of land requires the intensification of its use, and as a result, over-population of the most valuable territories, their transport congestion. The main actors are in these areas are: government agencies, private firms, entertainment venues and culture (cinemas, concert halls, casinos, etc.), shops, universities, research institutes and hotels. property valuation, land, property, construction, economy, finance.