Anjishnu : 1OQ17AT008

Disha : 1OQ17AT012
Harshini : 1OQ17AT016
Ishan : 1OQ17AT017
Abhishek : 1OQ17AT018
Fredrick : 1OQ17AT019
Jashwanth : 1OQ17AT020
Krithika : 1OQ17AT026
Megha : 1OQ17AT029
CHARACTERISTICS OF LAND

• The term 'Land' in economics is often used in a wider sense. It does not mean only the surface
of the soil, but it also includes all those natural resources which are the free gifts of nature.

• It, therefore, means all the free gifts of nature. These natural gifts include:
• rivers, forests, mountains and oceans;
• heat of sun, light, climate, weather, rainfall, etc. which are above the surface of land;
• minerals under the surface of the earth such as iron, coal, copper, water, etc.

• "By land is meant... materials and forces which nature gives freely for man's aid in
land, water, air, light and heat." Therefore, land is a stock of free gifts of nature.

1. Free Gift of Nature:

Man has to make efforts in order to acquire other factors of production. But to acquire land no
human efforts are needed. Land is not the outcome of human labour. Rather, it existed even
long before the evolution of man.
CHARACTERISTICS OF LAND

2. Fixed Quantity:
The total quantity of land does not undergo any change. It is limited and cannot be increased
or decreased with human efforts. No alteration can be made in the surface area of land.

3. Land is Permanent:
All man-made things are perishable and these may even go out of existence. But land is
indestructible. Thus it cannot go out of existence. It is not destructible.

4. Land is a Primary Factor of Production:

In any kind of production process, we have to start with land. For example, in industries, it helps
to provide raw materials, and in agriculture, crops are produced on land.

5. Land is a Passive Factor of Production:

This is because it cannot produce anything by itself. For example, wheat cannot grow on a piece
of land automatically. To grow wheat, man has to cultivate land. Labour is an active factor but
land is a passive factor of production.
CHARACTERISTICS OF LAND

6. Land is Immovable:
It cannot be transported from one place to another. For instance, no portion of India’s surface
can be transported to some other country.

7. Land has some Original Indestructible Powers:

There are some original and indestructible powers of land, which a man cannot destroy. Its
fertility may be varied but it cannot be destroyed completely.

8. Land Differs in Fertility:

Fertility of land differs on different pieces of land. One piece of land may produce more and
the other less.

9. Supply of Land is Inelastic:

The demand for a particular commodity makes way for the supply of that commodity, but the
supply of land cannot be increased or decreased according to its demand.
ECONOMIC CHARACTERISTICS OF LAND
• There are four economic characteristics of land as follows:-

SCARCITY

• When applied to real estate, the principle of supply and demand refers to the ability of
people to pay for housing coupled with the relative scarcity of real estate. For any type of
good or service to have value in any marketplace, it must possess four characteristics:
demand, utility, transferability and scarcity. Demand is a need or desire coupled with the
purchasing power to fill it, whereas utility is the ability of a good or service to fill that need.
Scarcity means there must be a short supply relative to demand. Air, for example, has utility
and is in demand, but it is not scarce.

• Scarce means there isn't much of something around. Well, scarcity means the same thing.
Land is not limitless. Yeah, about a quarter of the earth's surface is land, but once it's gone,
it's gone.

• This can have a significant impact on the value of a property. Especially in highly populous
areas, such as Long Island. The more scarce the land, the higher the price. It is a supply and
demand concept.
ECONOMIC CHARACTERISTICS OF LAND
IMPROVEMENTS

• The economic characteristic of improvements (also known as modification), states that

improvements to a piece of land can have either a positive or negative impact on its value.

• Adding a pool and landscaping to a home will increase its value. If a nuclear power plant is
built, the surrounding land values will decline.

• Building an improvement on one parcel of land can affect the land's value as well as the use
of neighboring tracts and whole communities. For example, improving a parcel of real
estate by building a shopping center or selecting a site for a nuclear power plant or toxic
waste dump can dramatically change the value of land in a large area.
ECONOMIC CHARACTERISTICS OF LAND
PERMANENCE OF INVESTMENT

• Permanence of investment is also known as fixity and means investments in real estate are
long-term. This is due to the physical characteristics of indestructibility and immobility.

• Since land is immobile, investment in property becomes fixed. Land cannot be moved if the
market becomes better in another location. - Since real estate transactions are complex and
large amounts of money are involved, they are not made very frequently. As a result, a real
estate investment is a long-term investment.
ECONOMIC CHARACTERISTICS OF LAND
AREA PREFERENCE

• Area preference (or situs) is the most important economic characteristics of land. Situs is
based on many factors, such as history, convenience, and reputation.

• A home in a neighborhood with great schools and a low crime rate will generally command
a higher price. A house in a high crime neighborhood with poor schooling would be priced
lower
PHYSICAL CHARACTERISTICS OF LAND
IMMOBILITY

• Let’s begin with the first characteristic of land. The term immobility land in the real estate
markets means that land cannot be moved from a particular spot to another location.
Improvements and construction can be made on it, but the land itself can’t be moved, and no
action can physically move it.

• This is why the location of a piece of land has a large impact on its price and demand.
Property taxes can also differ depending on where a particular piece of land is located.

• An example of this is the price of fuel. Fuel purchased in a city will cost more than fuel
bought on the outskirts of an area or neighborhood.

• Someone can choose where he or she gets his or her fuel. The fuel itself remains the same,
but the price differs depending on where you get it. That is the inverse of the land’s value.
Unlike fuel, land cannot be moved. Because of this immobility, the land’s surroundings, such
as houses and buildings, influence the demand, values, and prices of plots.
PHYSICAL CHARACTERISTICS OF LAND
INDESTRUCTIBILITY

• Another characteristic of land is its indestructibility or permanence. In the real estate market,
it’s one nature of land which states it cannot be destroyed.

• In other words, the value and appearance of land can change depending on the changing
conditions around it. But as far as the house is concerned, its size, shape, and durability
remain the same.

• For this reason, property insurance does not cover land but rather, covers the improvements
made on it. If a house gets destroyed, the value of the land it sits on remains the same
because it cannot be destroyed.
PHYSICAL CHARACTERISTICS OF LAND
NON HOMOGENEITY

• The last characteristic is non-homogeneity. The term non-homogeneity in the real estate
market, also known by the terms heterogeneity or uniqueness, means that every parcel of
land is unique.

• Even when two locations might look the same, the fact of the matter is they are still unique
from one another.

• Their location, the type of buildings or houses built on them, and their improvements may
differ. They also vary in terms of size and shape

• For example, if two parcels of property located side by side may look the same, one of the
parcels is closer to the freeway than the other. Based on this, the plot closer to the freeway
has less value than the parcel located farther from the freeway, even if the ownership is the
same. Their difference in location is a good illustration of the uniqueness or heterogeneity of
each parcel.
PHYSICAL CHARACTERISTICS OF LAND
PERSONAL PROPERTY

• Personal property is property that is movable. Any property that can be moved from one
location to another. In civil law systems, personal property is often called movable property
or movables.

• Personal property is a class of property that can include any asset other than real estate.

• The distinguishing factor between personal property and real estate, or real property, is
that personal property is movable; that is, it isn't fixed permanently to one particular
location

• Real property cannot be moved and is anything that is attached to land.

PHYSICAL CHARACTERISTICS OF LAND
TANGIBLE PERSONAL PROPERTY

• To be considered tangible personal property, an item

must be something you can physically handle.... For an
individual, this would include nearly all of your personal
possessions, excluding a home or any other kind of real
estate.

• Tangible personal property is physical property that can

be touched, such as furniture, clothing, and vehicles. It's
distinct from the other major class of property, real
property (or real estate), in that you can move it from
one location to another real property is permanently
attached to a single location. .
PHYSICAL CHARACTERISTICS OF LAND
TANGIBLE AND INTANGIBLE PERSONAL PROPERTY

• "Tangible personal property" exists physically (i.e., you can touch it) and can be used or
consumed. Clothing, vehicles, jewellery, and business equipment are examples of tangible
personal property.... Paper assets that represent value, such as stock certificates, bonds, and
franchises, are not tangible property.

• Intangible personal property is an item of individual value that cannot be touched or held....
Conversely, tangible personal property, such as machinery, vehicles, jewelry, electronics, and
other items can be physically touched and have some level of value assigned to them.
PHYSICAL CHARACTERISTICS OF LAND
INTANGIBLE PERSONAL PROPERTY

• Intangible property, also known as incorporeal property, describes something which

a person or corporation can have ownership of and can transfer ownership to another
person or corporation, but has no physical substance, for example brand identity or
knowledge/intellectual property.

• It generally refers to statutory creations such as copyright, trademarks, or patents. It

excludes tangible property like real property (land, buildings, and fixtures) and personal
property (ships, automobiles, tools, etc.). In some jurisdictions intangible property are
referred to as choses in action.

• Intangible property is used in distinction to tangible property. It is useful to note that there
are two forms of intangible property: legal intangible property (which is discussed here)
and competitive intangible property (which is the source from which legal intangible
property is created but cannot be owned, extinguished, or transferred).
PHYSICAL CHARACTERISTICS OF LAND
INTANGIBLE PERSONAL PROPERTY

• Competitive intangible property disobeys the intellectual property test of

voluntary extinguishment and therefore results in the sources that create intellectual property
(knowledge in its source form, collaboration, process-engagement, etc.) escaping
quantification.

• Generally, ownership of intangible property gives the owner a set of legally enforceable
rights over reproduction of personal property containing certain content. For example, a
copyright owner can control the reproduction of the work forming the copyright.

• However, the intangible property forms a set of rights separate from the tangible property
that carries the rights. For example, the owner of a copyright can control the printing of
books containing the content, but the book itself is personal property which can be bought
and sold without concern over the rights of the copyright holder.
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