Poland and Germany

Price mechanism

Prices for land parcels are individual. There are no two identical plots of land. Nevertheless, world information on the prices of land is of interest insofar as it let to get notion about main consistency of price formation for such product as land parcels.

Lithuania

More than 1800 land parcels for households were sold during 1999 in 5 largest cities. More than 500 of them in Vilnius, around 400 in Kaunas and the same number in Klaipeda. The average price for residential land in Vilnius for 1 square meter was 40 EURO, in Klaipeda and Kaunas – 25 EURO, in Siauliai and Panevezys – 10 EURO. Average plot size for household in cities is 1000 –1500 m².

Industrial land is obtained in auctions arranged by municipalities or from private persons. Industrial land price in cities is 9-15 EURO for 1 square meter depending on the location.

The price for private parcels in the best places for commerce in Vilnius exceeds 150 EURO for square meter.

In 1999 around 14 000 land parcels changed their owners. The total area of these parcels makes more than 33 000 ha. The largest amount of transactions took place in Kaunas country (23%) and Vilnius country (20%). The highest prices for agricultural land are in Vilnius country (730 EURO/ha), Kaunas and Klaipeda countries (410 EURO/ha), the lowest – in Taurage and Telsiai countries (230 EURO/ha).

Small land parcels up to 1 ha not so far from Vilnius and Kaunas and on the lakeshores are popular for households and summerhouses and are much more expensive. Prices for such parcels are 3-5 thousands EURO per ha in Moletu and Svencioniu regions, and even more in Trakai region. Forestland prices are almost the same over the whole territory of Lithuania and depend on amount, age and quality of wood. Mostly it is 1 to 3 thousand EURO per ha for mature forest. For oaks wood price is up to 6000 EURO/ha. Only in western Lithuania prices are higher by 5-10 percent because of lower transportation costs to the seashore.

Latvia

The standard plots for a residential land are from 700 m² – 2000 m² in the major cities of Latvia and 500 m²-1400 m² in Riga. The prices for these plots are respectively 7-40 EURO/m² and 9-40 EURO/m².

Standard plot of commercial land are from 1000 m² – 1100 m² in Riga and 600 m²-5000 m² in the major cities. Certainly, lack of vacant land is essential in Riga, therefore bigger plots were sold in Riga’s suburbs.

The market of agricultural land is slack. The low prices for agricultural products are considered to be main reason for the slack market of agricultural land. Larger activity is recorded in those regions where fertility of soil is better than on the average in Latvia. Most of these districts are situated in the South of the country where there are the highest prices (400-440 EURO/ha). In order regions the prices are floating between 150-380 EURO.

The price for forest land is one of the highest in these districts – from 517 – 862 EURO/ha. In eastern districts the price for forestland rises as high as 1034 EURO/ha.

Estonia

There were more than 1700 transactions performed in the biggest cities of Estonia (Tallinn, Tartu, Pämu, Haapsalu, Kuressaare, Rakvere) in 1999. Of them over 1000 transactions were carried out in Tallinn. 75% of all transactions were with residential land. Prices of land in Tallinn and other cities are very different, it depends on district. E. g the price of residential land in Tallinn is 5-40 EURO/m², other cities 2-30 EURO/m², commercial land in Tallinn 10-35 EURO/m², in other cities about 5 EURO/m². The dominating size of plots of residential land is between 800-2000 m², commercial land between 1100-4000 m².

In 1999 about 3000 transactions with agricultural and forestland were performed in Estonia. Altogether 45 000 hectares of agricultural and forestland with the value of 29.5 million EURO changed owners. Majority of these transactions was transactions with forestland (1900 transactions). The transactions with forestland covered 36 500 ha, of it actually covered with forest were 22 500 ha. The average size of sold parcel was 20 ha of which the share of forest was 12.5 ha. The average price of forest land including the price of growing stock was 780 EURO/ha.

As to selling activity, forest land was followed by agricultural land bought with the aim of building a summerhouse on it. Such transactions took place mostly in coastal areas. On islands the price level was between 0.2-0.6 EUROm² and in mainland 0.1-0.3 EURO/m².

Poland and Germany

In Szczecin the average price of land parcels for commercial purposes in 1997 reached 18-31 USD/m². In neighboring Germany, in Bremen, the maximum prices in the most cases in the same year were in the interval 300-400 DEM (176-230 USD)/m² and it was belong to large consumer markets (supermarkets). The minimum prices at the same place were 70-90 DEM (41-53 USD)/m² for land parcels of processing industry. Prices for land that belong to offices, booking offices, petrol stations are in possession 110-170 DEM/m² or 65-100 USD/m². Land prices for commercial objects are in the range 160-220 DEM/m². Increasing the number of land parcels resulted in the decreasing of their prices.

Ukraine

We can evaluate about the prices of plots property at land auctions in Odessa and Chernigov on the basis of table 4.1.

Table 4.1. Prices at land auctions in Odessa and Chernigov

The type of sold commodity	The purpose meaning	Square, m^2	Price, USD	Price, USD/m^2
		Odessa
Property	Greengrocery			17.60
Property	Production			6.09
Long-term rent (50 years)	Nonproduction			15.61
Long-term rent	Merchant			21.48
		Chernigov
Long-term rent	Petrol station			2.50
Long-term rent	Commerce			8.70
Long-term rent	Gasoline service centre/Car parking			6.90
Long-term rent	Warehouses/garages			0.99
Long-term rent	Warehouses/garages			2.04

General common factors of price formation at the primary market of Ukraine urban land were investigated in [19]. The ratio of minimum and maximum prices is 8570. At the times when land price in small rural locations was 0,1 hrn./m² (1,8 c/m²), at the same time land prices in the cities-millionaires were 857,56 hrn./m² (157,9 USD/m²). This is usual. The ratio of average prices in cities where population is about 10 thousand people and in cities-millionaires – over 11 (table 4.2).

Built-up land parcels are dominated by the degree of familiarity: their share exceeds 87%. The depressant majority of land on the functional use has commercial usage (the position of shops, cafes, restaurants, hotels, petrol stations, etc.). Their prices are known. Other land plots are intended for industrial building-up and warehouses (17,1%) and for profitable residential development (0,4%). Although in recent years the demand for industrial land plots is increasing, but there is commercial function prevalent in the structure of land parcels on functional use in all cities. This function gives the highest income of this parcel.

Table 4.2.

Дата добавления: 2015-10-29