The land market is very, very interestingthe sphere of business, because among all the real and potential benefits of modern people, the earth is a central place, regardless of the social order. Territory as an object of market and economic relations is absolutely unique and key in the overall system of entrepreneurial activity of modern people, as well as directly their very life.
The land market is a trade of special value,since it is the only place of residence for any people. It is also a natural and most important factor in any business, providing indirect or direct participation in the production of various products or other benefits.
What is its purpose?
It is necessary to understand correctly that the land market issphere, which has a multifunctional value. If we consider it as a natural object that exists regardless of the will of man, earth can be called, in principle, the entire planet, and therefore it fulfills the most important ecological function. Also, land is the soil, is considered an object of management and reflects various economic relations.
The social role that the land market has isuse it as a habitat, and also one of the basic conditions of life 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. It is for this reason that capital and land markets are closely interrelated, and are regulated not only by standard constitutional norms and land law, but also by existing civil legislation, taking into account forest, environmental and other legal norms.
Features of this type of business in Russia
Disposition of land, as well as the acquisition orthe sale of plots on the territory of Russia is an extremely complex and specific business. Modern capital and land markets as a legal redistribution of plots between several owners using economic methods are subject to a variety of norms and restrictions.
Initially, land is the main means of production, according to which the welfare of a particular state is wholly determined.
It represents the main habitatman, and is also a direct source of organic and mineral resources, the purpose of employment of labor and capital. This term covers all the useful properties provided by nature in a certain volume, over the supply 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 sorts of minerals .
For a farmer,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 rent 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 to correctly extract his own profit.
What is the role of this market?
The use of land, as well as associated with itrelations in ancient times became the basis for the economic activities of man, which subsequently gave an additional impetus to the development of productive forces, the deepening of the social division of labor, as well as its specialization.
In the process of producing all kinds of materialbenefits or the provision of services involves the use of a number of factors. At the same time, in accordance with modern economic theory, it is customary to single out only four main groups:
- The territory, the source of which is the land and rent market;
- conducting business activity.
These factors directlyinfluence on modern production, as well as the rate of economic growth. At the same time, it should be noted that these factors, without which production is impossible in principle, are included in the supply area.
What is it?
The land and rent market, representingnatural factor, are the universal means of production, while as an object of real estate is a means of production, an object of labor, since in various spheres of activity a person exerts influence on it in one way or another. The combination of these two qualities makes it a rather specific means of production, which works in any modern branch of the national economy.
Thus, as a means of production, land:
- is not a product of previous work;
- has spatial limitations;
- can not be replaced by any other means of production;
- is characterized by a permanent location;
- can not be worn when used correctly;
- has a different quality depending on the territory;
- characterized by a rather specific utility of each individual site;
- is distinguished by fertility, and fully realizes its useful qualities in agriculture.
Among other things, it is worth noting that,that in almost every field of human activity, land market surveys show that it is a spatial operational basis, and therefore has an inextricable link to the various physical objects that are located on it, including roads, buildings, structures, and other material elements that create human.
What forms the market?
Because of the limited nature of this resource, andimpossibility to conduct any kind of activity without it, to date land ownership is one of the most profitable types of property.
It should be understood that thisthe resource has unequal importance 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 field of activity for the further technological process. At the same time in the extractive industry, it also provides the main subject of labor, which later turns into a full-value raw material for processing plants.
Analysis of the land market shows that the mostan important lease of territories is for agriculture, because there are intertwined natural and economic processes of reproduction. First of all, it in this case is a universal subject of labor in the process of processing, and also acts as an active agent, having fertility and representing the environment in which the development of various plants is carried out.
Man, affecting the soil, andusing its basic life forces, carries out the production of the products necessary for it, and it must be correctly understood that in itself the land, unlike other means of production, will not lose its consumer value (fertility) during its use, but also in the case the competent construction of a system of farming, as well as the use of perfect equipment and technology will provide even higher and more stable productivity.
При этом не стоит забывать о том, что the human impact on the fertility of the earth is not unlimited, because sooner or later there comes a time when the additional return provided by an additional application of capital and labor to it will be reduced to such an extent that a person will not receive any compensation for their applications. In other words, in the end, any investment in the soil becomes meaningless, as its productivity can no longer be increased. The only opportunity to use the prospects provided by the land market (production factors) is to improve the used agricultural technology as modern technologies develop.
Supply and demand
First of all it is worth noting the fact thatsoil is an absolutely free gift of nature, which makes it possible to say that its cost is irrational. However, the offer on the land market exists, and it is an object of purchase and sale, and also has a direct link to the lease relations.
It is also necessary to understand correctly that, independing on certain natural and climatic conditions and location of sites, they are divided into the worst, average and best. In most cases, the basis for this division is the natural fertility of the soil, because it will directly determine the productivity of the territory, but if desired, it can be improved if you make additional investments, and use additional labor.
At the same time, the Moscow land market shows thatnot always the cost can be built exclusively on the basis of the fertility of a certain territory. Of great importance is also its location.
Opportunities of the monopoly
Doing business inof a certain territory is ultimately the cause of two types of monopoly - it is a monopoly on the object of management and property. 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 on the part of its owner.
In the first case we are talking about the fact that a person,which has been demanded in the land market, and which takes a certain area to rent, ultimately does not in any way limit its rights, as well as the possibilities of maintaining its own economy on it. In other words, if desired, he can engage in all types of agricultural activities, 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 provided for the land that is leased.