The land market is The land market in Russia

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The land market is a very, very interesting business area, because among all the real and potential benefits of modern people, land is given a central place, regardless of the social structure. The territory, as an object of market and economic relations, occupies an absolutely unique and key importance in the general system of entrepreneurial activity of modern people, as well as directly in their life itself.

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 is necessary to understand correctly that the land market is a sphere 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 ecological function. Also, the land is the soil, is considered an object of management and reflects various economicrelationship.

The social role that the land market has is its use as a habitat, as well as one of the basic conditions for the life of modern people. Among other things, it includes the territory of the state or its certain subject, that is, it also determines the political function. It is for this reason that the capital and land markets are closely interconnected, and are also regulated not only by standard constitutional norms and land law, but also by current civil legislation, taking into account forestry, environmental and other legal norms.

Features of this type of business in Russia

The disposal of land, as well as the acquisition or sale of plots in Russia, is an extremely complex and specific business. Today's capital and land markets as a legal redistribution of land among several owners using economic methods are subject to a wide variety of rules and restrictions.

Factor of production

Initially, land is the main means of production, according to which the well-being of a state is completely determined.

It represents the main human habitat, and is also a direct source of organic and mineral resources, the purpose of the investment of labor and capital. This term covers all useful properties provided by nature in a certain amount, over the supply of which man has no power outsidedepending on whether it is about what constitutes the land market and land rent, or about 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 rent represent 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 man 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 the relations associated with it, became the basis of human economic activity in ancient times, 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 producing all kinds of material goods or providing services, it involves the use of a number of factors. At the same time, in accordance with modern economic theory, it is customary to distinguish only four main groups:

• territory, the source of which is the land market and rent;
• labor;
• capital;
• doing business.

It is these factors that have a direct impact on modern production, as well as economic growth rates. At the same time, it is worth noting the fact that these factors, without which, in principle, it is impossible to carry out production, are included in the supply area.

What is it?

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 fields of activity a person influences it in one way or another measure. The combination of these two qualities makes it a rather specific means of production that works in any modern branch of the national economy.

Main Feature

Thus, as a means of production, land:

• is not a product of previous labor;
• has space restrictions;
• cannot be replaced by any other means of production;
• distinguished by its permanent location;
• cannot be worn out if used correctly;
• has a different quality depending on the territory;
• characterized by the rather specific usefulness of each individual section;
• 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 field of human activity, market reviewslands show that it is a spatial operational basis, as a result of which it has an inextricable connection 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 conducting any kind of activity without it, today land ownership is one of the most profitable types of ownership.

At the same time, it is necessary to correctly understand that this resource is of different 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 a place on which it stands, as well as the main area of \u200b\u200bactivity 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 processing plants.

Agriculture

Analysis of the land market shows that the most important area lease is for agriculture, as natural and economic processes of reproduction are intertwined there. First of all, in this case, it is a universal object of labor in the process of processing, and also acts as an active means, having fertility and representing the environment in which development is carried out.various plants.

A person, influencing the soil, as well as using its main vital forces, produces the products he needs, while it is necessary to correctly understand that the land itself, unlike other means of production, during will not lose its consumer value (fertility), but even in the case of a competent construction of the farming system, as well as the use of advanced equipment and technology, it will provide even higher and more sustainable 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 there comes a moment when the additional return provided by the additional application of capital and labor to it will be reduced so much that a person will not receive any remuneration for their applications. In other words, in the end, any investment in the soil becomes meaningless, since its productivity can no longer be increased. The only way to use the prospects that the land market (factors of production) provides is to improve the agricultural techniques used as modern technologies develop.

Demand and supply

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 cost is irrational. However, there is an offer on the land market, andit is an object of sale, and also has a direct connection with the rental relationship.

You also need to correctly understand that, depending on certain natural and climatic conditions and the location of the sites, they are divided into the worst, average and best. In the overwhelming 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 by making additional investments, as well as using additional labor.

At the same time, the Moscow land market shows that not always the cost can be built solely on the basis of the fertility of a certain territory. Her location is also of great importance.

Monopoly Opportunities

Doing business in a certain area is ultimately the cause of two types of monopoly - 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 by its owner.

In the first case, we are talking about the fact that a person who was shown a demand on the land market, and who takes a certain plot for rent, is ultimately not limited in any way in his rights, as well as the possibilities of running his own farm on it. In other words, if desired, he canto engage in any kind of agricultural activity, trying to get the most effective result from doing business, which opens the way for him to receive additional income. At the same time, in the second case, rent is provided for the land that is leased out.