The land and natural resources market is a single structure. One way or another, it concerns many of us. Therefore, you should be aware that here the meaning of the term “land” does not mean just any separately taken allotment, for example, for agricultural or housing construction purposes, but 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 people from various sectors of the economy come into contact: industrial, construction, mining, agricultural and processing.
It is a mistake to assume that only sale and purchase 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 land for use for a specified period - for rent. In this type of transaction, the owner does not lose his right of ownership, because such a type of calculation as the purpose of land rent begins to operate .
Under the terms of the lease, the new owner receives the property for temporary use. In this case, the transaction is regulated by the land market, in this case, the rent is assigned as the price of ownership of the land. Lease relations are very wide and exist everywhere.
For example, there are such states in which
private ownership of land is not provided for by law. But this does not mean that the land market is absent in them. Indeed, in this case, certain power structures transfer certain sectors for economic activity for urgent or unlimited 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, and establishing investment attractiveness are needed . Based on their data, interested parties find the criteria they are interested in for studying proposals, selecting and comparing 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 governments.
- In the second - subjects representing commercial and public structures.
- In the third - individuals, families, nationalities and various civic associations.
The economic interest and the amount of income of the parties during the lease are determined by the value of the objects, the magnitude of the investment risks and the estimated price of the plot if it were put up for sale.
Land pricing factors also have their own specifics and tools. But most often the determining factor here is a comparative approach to similar transactions with plots located in close or similar conditions.