INCREASE IN THE MARKET VALUE OF LAND AS AN EFFECT OF LAND CONSOLIDATION PROJECTS

Abstract

Aim: The economic effect of an increase in the market value of land is a factor usually neglected in the assessment of land consolidation projects. However, it should be expected after procedures aimed at reorgan­izing the spatial structure of land plots. To fill the research gap in this area, a study was carried out to identify potential changes in land values as a result of completed land consolidation projects. Methods: Data from nine land consolidation projects carried out in Poland between 2007 and 2013 was used in addition to the results of an artificial neural network model developed within the framework of statistical analyses of agri­cultural real estate markets for municipalities where land consolidation projects were carried out. Results: Taking into account the increase in the market value of land as a result of consolidation, the balance of costs and benefits of planned or implemented projects significantly improved. The increase ranged from 1.2% to as much as 28.4%. Conclusions: The effect of increased land values would be a serious argument in assessing the profitability of implementing land consolidation projects. The increase in land value as an economic and social effect of land consolidation increases the probability of revitalizing local property markets and contributes to the wealth and creditworthiness of landowners. Exposing this effect can increase public interest and support for the implementation of consolidation projects, which is a very important step on the way to village renewal and activation.