Development of a Land Price Model for a Medium Sized Indian City

Abstract

Land price plays a crucial role in the development of a region, which serves as an indicator of the features of a property. The primary goal of this paper is to explore the relationship between land price and various geographical and accessibility parameters and thereby arrive at a model to predict the land price. Based on literature surveys, the parameters that influence land price are identified further through which data collection from primary surveys, the creation of a road network map, a geographic information system (GIS) analysis to determine the distance to the central business district (CBD), measurement of road density and access road width, assessment of employment opportunities through establishment surveys, and identification of various land use parcels in the study region are accomplished. The land prices are collected from recently sold parcels in each of the zones in the study region. A negative and significant correlation is observed between land price and distance to the CBD. Positive correlations are observed between land price and other factors considered, such as road density, availability of educational facilities, employment opportunities, and the extent of commercial and residential land use areas. A non-linear regression model is developed that can predict land price depending on the significant parameters.