Land Markets - Why are They Required and How Will They Develop?

SUMMARY Land is unlike other commodities that can be bought and sold in that it is immoveable. Buildings upon it can be dismantled and moved elsewhere but the land on which they stand cannot be moved. Only the rights to use the land can be bought and sold. Land markets exist when and wherever it is possible to exchange rights in land for agreed amounts of money or services rendered. The ability and capacity of banks and other financial institutions to lend money is underpinned by an efficient land market, which in turn requires an efficient land administration system. The efficiency of the land market varies across the world together with its openness to public scrutiny and support for the concepts of sustainable development. In less economically developed societies, and in particular where informal settlements exist, it has not always been possible to develop an effective land market and this leads to under-capitalisation. In order for a land market to develop and be maintained a number of critical factors need to be in place. In addition to clear policies and enforceable laws, the institutional framework needs to provide for consistent, responsible and accountable decision-making within the overall national land policy. There must also be a land registration system that is affordable so that all citizens, especially women and minority groups, rich and poor, can have access to it. Continued globalisation will inevitably impact land markets especially as information technology, including web based services, provides greater access to national land information services. This paper examines the current development of land markets and why they are required; and then explores how these systems might develop, taking into consideration the introduction of electronic conveyancing, global monetary transactions, and pan-European land information services. Finally the paper asks how these developments will impact the less developed economies.