The land market is a very, very interesting area of ​​doing business, because among all the real and potential benefits of modern people, the earth is given a central place, regardless of social structure. The territory as an object of market and economic relations occupies an absolutely unique and key value in the general system of entrepreneurial activity of modern people, as well as directly in their very lives.
The land market is a trade of special value, since it is the only place where any people live. It is also a natural and most important factor in any business, providing indirect or direct participation in the production process of various products or other benefits.
What is its purpose?
It must be correctly understood that the land market is an area of ​​multifunctional significance. If we consider it as a natural object that exists regardless of the will of man, the earth can be called, in principle, the entire planet, and therefore it performs the most important environmental function. Also, the land is the soil, is considered an entity and reflects various economic relations.
The social role that the land market has is its use as a habitat, as well as one of the basic living conditions of modern people. Among other things, it includes the territory of the state or its specific subject, that is, it also determines the political function. For this reason , capital and land markets are closely interconnected, and are also regulated not only by standard constitutional norms and land law, but also by existing civil law, taking into account forest, environmental and other legal norms.
Features of this type of business in Russia
The disposition of land, as well as the acquisition or sale of land in Russia is an extremely complex and specific matter. Modern capital and land markets as a legal redistribution of land between several owners using economic methods are regulated by a variety of norms and restrictions.
Production factor
Initially, land is the main means of production, in accordance with which the welfare of a state is completely determined.
It represents the main human environment, and is also a direct source of organic and mineral resources, the purpose of the application of labor and capital. This term covers all the useful properties provided by nature in a certain volume, over the proposal of which a person has no power, regardless of whether it is a land market and land rent, or the sale of water resources and all kinds of minerals .
Examples
For a farmer, a certain plot is the main means of growing the necessary crops, while for an ordinary citizen, it is a territorial platform on which various industrial or residential buildings can be placed. For the food industry, the land market and land rents are the main source from which raw materials can be obtained. It is for this reason that it is the most important economic value from which a person, in the course of his history, has learned how to correctly make his own profit.
What is the role of this market?
The use of land, as well as related relations in ancient times, became the basis for conducting human economic activity, which subsequently gave an additional impetus to the development of production forces, deepening the social division of labor, as well as its specialization.
In the process of production of all kinds of material goods or the provision of services involves the use of a number of factors. Moreover, in accordance with modern economic theory, it is customary to distinguish only four main groups:
- territory, the source of which is the land and rent market;
- work;
- capital;
- doing business.
It is these factors that have a direct impact on modern production, as well as the pace of economic growth. At the same time, it is worth noting that these factors, without which it is in principle impossible to carry out production, are included in the supply area.
What is she like?
The land market and rent, being a natural factor, are a universal means of production, while as an object of real estate it is a means of production, an object of labor, since in various spheres of activity a person exerts influence on it to one extent or another. The combination of these two qualities makes it a rather specific means of production that works in any modern sector of the national economy.
The main characteristic
Thus, as a means of production, land:
- does not constitute a product of previous labor;
- has spatial limitations;
- cannot be replaced by any other means of production;
- has a permanent location;
- cannot be worn if used correctly;
- has a different quality depending on the territory;
- characterized by a rather specific utility of each individual site;
- It is distinguished by fertility, and fully realizes its useful qualities in agriculture.
Among other things, it is worth noting the fact that in almost every area of ​​human activity, land market surveys show that it represents a spatial operational basis, as a result of which it has an inextricable link with various physical objects that are located on it, including roads, buildings, structures , as well as other material elements that a person creates.
What shapes the market?
Due to the limited nature of this resource, as well as the impossibility of carrying out any types of activities without it, today land ownership is one of the most profitable types of property.
At the same time, one must correctly understand that this resource has a different value as a factor of production in various areas of the national economy. Thus, in the manufacturing industry, the land market in Russia provides domestic enterprises with the place on which it stands, as well as the main area of ​​activity for the further technological process. At the same time, in the mining industry, it also provides the main subject of labor, which later turns into a full-fledged raw material for manufacturing plants.
Agriculture
An analysis of the land market shows that the most important lease of territories is for agriculture, since natural and economic processes of reproduction are intertwined there. First of all, it in this case is a universal subject of labor in the process of processing, and also acts as an active means, possessing fertility and representing the environment in which the development of various plants is carried out.
Man, having an effect on the soil, as well as using its main vitality, carries out the production of the products he needs, it must be correctly understood that the land itself, unlike other means of production, will not only not lose its consumer during use cost (fertility), but also in the case of competent construction of the farming system, as well as the use of advanced equipment and technology will provide even higher and more stable productivity.
At the same time, one should not forget that the human impact on the fertility of the earth is not unlimited, since sooner or later such a moment will come when the additional return provided by the additional application of capital and labor to it will be reduced so that a person will not receive any compensation for their applications. In other words, in the end, any investment in the soil becomes meaningless, since its productivity will no longer be possible to increase. The only opportunity to use the prospects provided by the land market (production factors) is to improve the agricultural technology used as modern technologies develop.
Supply and demand
First of all, it is worth noting the fact that the soil is an absolutely free gift of nature, which makes it possible to say that its value is irrational. However, there is an offer on the land market, and it is an object of sale, and also has a direct relationship with rental relations.
You also need to correctly understand that, depending on certain climatic conditions and the location of the plots, they are divided into the worst, medium and best. In the predominant majority of cases, the basis for such a division is the natural fertility of the soil, because the productivity of a given territory will directly depend on it, but if desired, it can be improved if additional investments are made and additional labor is used.
At the same time, the Moscow land market shows that far from always value can be built solely on the basis of the fertility of a certain territory. Of great importance is its location.
Monopoly opportunities
Doing business in a certain territory is ultimately the cause of two types of monopoly - it is a monopoly on the object of management and ownership. The first type provides for the absolute right to dispose of the land, as well as its economic use, while the second provides for the exclusive right to own the territory by its owner.
In the first case, we are talking about the fact that a person who has shown a demand on the land market and who takes a certain plot for rent, ultimately is in no way limited in rights, as well as the possibilities of running his own farm on it. In other words, if desired, he can engage in any type of agricultural activity, trying to get the most effective result from doing business, which opens him the way to the possibility of obtaining additional income. At the same time, in the second case, rent is obtained for the land that is leased.