Land is unlike other commodities that can be bought and sold, in that it is immoveable. Buildings upon it can be dismantled and moved elsewhere but the land on which they stand cannot be moved. Land is said to be heterogeneous, no two parcels of land are the same, and only the rights the land can be bought and sold.
A Market is defined by Investopedia online dictionary as “A medium that allow buyers and sellers of a specific good or service to interact in order to facilitate an exchange. The price that individuals pay during the transaction may be determined by a number of factors, but price is often determined by the forces of supply and demand.” (Investopedia 2014)
Therefore, a Land market exist when and wherever it is possible to exchange rights in land for agreed amounts of money or services. The ability and capacity of banks and other financial institutions to lend money is supported by an efficient land market, which in turn requires an efficient land administration system.
The efficiency of the land market varies across the world together with its openness to public scrutiny and support for the concepts of sustainable development. In less economically developed societies, and in particular where informal settlements exist, it has not always been possible to develop an effective land market. In order for a land market to develop and be maintained a number of critical factors need to be essential. In addition to clear policies and enforceable laws, the institutional framework needs to provide for consistent, responsible and accountable decision-making within the overall national land policy. There must also be a land registration system that is affordable so that all citizens, especially women and minority groups, rich and poor, can have access to it. (Robert Mahoney, Peter Dale, Robin McLaren, 2007)
Written above briefly illustrates what is Land Market we would now look at, what is Land Economy? Land Economy is the study of the use, development...