Land Market: Problems and Trends

01.07.2010 21:54
Real Estate Market Analysis | Land Market: Problems and Trends This is the theme of the President's speech Land Union's Andrei Koshil at a press conference June 30 in Interfax.
The land market is closely linked to the suburban real estate market. This is the basis, the pricing component, a factor that affects the security of investments and liquidity facilities.
However, today the interest in buying land, investing in land is seriously reduced. Moreover, the land market shows the lowest decline among all segments of the real estate market. The reason for such a situation - hidden and obvious problems of the land market, in particular, and land relations in general.

Related article: The price of land near Minsk begins to break records

The main problem - lack of a clear, understandable all the same public policy in the sphere of land relations and ineffective control over the use of land resources. The investigation - a vast and very complicated legislation, which, moreover, is not met, withdrawal from the industry professionals, permanent restructuring of the State Committee, ultraboundary level of corruption, both within the State Committee and other bodies related to the release and clearance of land. In 2008 - 2009 years for the Exploration of Challenge Corporation tisyacheletiya "almost twice of corruption has grown in obtaining documents permissive nature of the operations with the land.

It should also be noted:
- Lack of clear tenure on land, in connection with the unsatisfactory work of the manager of the land register
- Lengthy and costly procedures for processing and re-registration
- Lack of organized sites for sale
- Lack of reliable information on prices of plots

In addition to the above mentioned problems the buyer is also faced with:

- Poor infrastructure: large areas reserved for individual housing construction, lack of planned areas for construction engineering and social facilities that are not addressed issues of road construction on water, sanitation, etc.

The situation is aggravated the lack of mortgage lending and other economic problems of a general nature, which leads to low liquidity of the land market.

Over the past year and the current tendency can be observed:
- Supply growth areas while reducing the effective demand
- Price reduction
- A large amount of concessions from the seller at the bargaining
- Distribution schemes, alternative buying: debt land, joint investment, natural barter.
- Growth of demanding customers
- Withdrawal from the market speculators
- Inefficient use of land plots as an investment site
- The decline of interest in the market as a whole

Ways out:
- Bringing order to the land sector, the eradication of corruption. Should compel all the participants of land relations, and above all, the public authorities to comply with laws
- Organization and implementation of market institutions
- Completion of the privatization of free
- Establishing a system of guarantees of human
- A real simplification and shortening design and re-registration documents for land
Content tags: land
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