Lecture

Land Incidence: Economics of Soil and Real Estate

Graph Chat

Chat with Graph Search

Ask any question about EPFL courses, lectures, exercises, research, news, etc. or try the example questions below.

DISCLAIMER: The Graph Chatbot is not programmed to provide explicit or categorical answers to your questions. Rather, it transforms your questions into API requests that are distributed across the various IT services officially administered by EPFL. Its purpose is solely to collect and recommend relevant references to content that you can explore to help you answer your questions.

Description

This lecture delves into the concept of land incidence, exploring the relationship between land price and property price, the impact of floor area, construction costs, and profit margins. It analyzes scenarios where land price, property price, and density vary, highlighting the intricate balance in real estate economics. Lessons learned include the counterintuitive nature of land incidence when land price is endogenous. The lecture concludes by emphasizing the complexity of real-world real estate dynamics and the risks of relying solely on intuition.

In MOOC

Soil and Real Estate Economics II

An economics course that presupposes no formal economic knowledge other than that developed in the first modules of the first part of this course, Land and Property Economics I. In this second course (Economics of Land and Real Estate II), we will cover..: The developer's countdown and its influence on land prices The calculations of property developers in general Market supply and demand and how they determine and vary prices Differentiating land by urban location

Official source

Related concepts (32)

Construction management

Construction management (CM) is a professional service that uses specialized, project management techniques and software to oversee the planning, design, construction and closeout of a project. The purpose of construction management is to control the quality of a project's scope, time / delivery and cost—sometimes referred to as a project management triangle or "triple constraints." CM is compatible with all project delivery systems, including design-bid-build, design-build, CM At-Risk and Public Private Partnerships.

Construction

Construction is a general term meaning the art and science to form objects, systems, or organizations, and comes from Latin constructio (from com- "together" and struere "to pile up") and Old French construction. To construct is the verb: the act of building, and the noun is construction: how something is built, the nature of its structure. In its most widely used context, construction covers the processes involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their life.

Construction engineering

Construction engineering, also known as construction operations, is a professional subdiscipline of civil engineering that deals with the designing, planning, construction, and operations management of infrastructure such as roadways, tunnels, bridges, airports, railroads, facilities, buildings, dams, utilities and other projects. Construction engineers learn some of the design aspects similar to civil engineers as well as project management aspects.

Real estate appraisal

Real estate appraisal, property valuation or land valuation is the process of developing an opinion of value for real property (usually market value). Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their condition, a key factor in valuation), unlike corporate stocks, which are traded daily and are identical (thus a centralized Walrasian auction like a stock exchange is unrealistic). The location also plays a key role in valuation.

Free market

In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any other external authority. Proponents of the free market as a normative ideal contrast it with a regulated market, in which a government intervenes in supply and demand by means of various methods such as taxes or regulations.

Related lectures (64)

Land and Real Estate Economics: Pricing and Development

Explores land pricing, development, building rights impact, and land-property price relationships.

Determinants of Land Price MOOC: Soil and Real Estate Economics II

Explores models of land pricing, conditions for high land prices, and the leverage effect between real estate and land prices.

Economy of Land and Real Estate II MOOC: Soil and Real Estate Economics II

Explores the determinants of real estate demand and supply, equilibrium adjustments, and market variations in land prices.

Real Estate Investment: Valuation and Analysis

Explores real estate investment valuation, construction costs, and property pricing factors.

Real Estate Economics: Margins and Pricing MOOC: Soil and Real Estate Economics II