Contents

Introduction

1. Price mechanism.

   1. Price mechanism in the Republic of Belarus.

   2. Foreign experience.

      1. Lithuania.

      2. Latvia.

      3. Estonia.

      4. Poland and Germany.

      5. Ukraine.

      6. Moscow.

      7. Czech Republic, Slovakia and Slovenia.

2. Value and valuation of land.

   1. Market value in the Republic of Belarus.

   2. World information.

      1. Methods of valuation.

      2. Cost approach.

      3. Sales comparison approach.

The conclusions.

The list of recourses.

Introduction

Land is a basis of all life processes of society such as political, economic, social, industrial, municipal, environmental and other spheres. Land has value, which quality represents one of the most important conditions for normal functioning and development of the economy.

State executive bodies have necessity to receive accurate value of land in the management of land resources, carrying out rational land and tax policy.

Since December 13, 1968 the State Land Cadastre has carrying out to ensure rational use of land resources. The Cadastre contains a set of honest and necessary information about the natural, economic and legal status of land. The State Land Cadastre includes land registration, registration quantity and quality of land, soil appraisal and economic evaluation of land.

The State Land Cadastre has great economic importance. Its data are widely used to solve many questions that are related with land usage. Thankfully the land-cadastral data we can determine the location of land resources in the national wealth, to establish targets for increasing the productivity of land resources by transferring land from one category to another, the transformation of land and improvements, land reclamation, soil erosion, acidity, salinity, water logging of land, to assess the cost-effectiveness of planned enterprise.

Today in the Republic of Belarus appropriate conditions have developed for the mechanism formations of land taxing, charging land rent in state ownership and state policy in assessing land for tax purposes.

One of the decisive conditions for the efficient use of land resources in terms of transition economy is methodologically correct determination of land price, ensuring the establishment of reasonable sizes of different kind of land payments, first and foremost value of the land tax. In this case the fundamental importance is a search of a calculated value, which would be fully consistent with the economic realities of the particular stage of social development. The problem is that it here are no methodological basis for calculating the equilibrium land price in the current economic conditions. The situation is explained by the following reasons.

First, domestic methods of economic land evaluation used in the pre-reform period, were created without regard to their use in modern market economy.

Secondly, the well-known foreign methods are not focused on slightly predictable crisis economical situation and land markets such as Russia, which is in its formative stage, is unstable and doesn’t meet the generally standards of operation. So we can hardly expect to get reliable results using overseas commonly used methods of capitalization income or capitalization of a land parcel.

Third, in Belarus haven’t accumulated significant information base of operations with land yet, on which could be used some foreign techniques, in particular the methods of analogy, simple, or based on mathematical models, statistical extrapolation.

That’s why today very strict and important problem is development of science-based methodology for determining the equilibrium price of land, which can take into account the particular conditions of Belarus.