Abstract
Technological development makes it possible to simplify and accelerate decision-making processes by adequately processing and evaluating large volumes of data. Sub-data obtained from large data sets have a very important practical role in asset valuation, forecasting and valuing delineated or difficult-to-map areas, or in the context of portfolio management. Land valuation is a separate segment within asset valuation and it requires a specific methodological approach on behalf of evaluators. In this study, the authors compared the transaction data of arable land and the value of other land use categories. Based on empirical assessments, the authors developed proposals for the fast and cost-effective determination of the value of land use categories other than arable land - mainly meadows and pastures.
Highlights
When an enterprise considers the use or extent of a given resource, e.g. land, it must first examine the expected demand and price conditions in the market of the products produced through the use of this resource, i.e. how the income-generating capacity of the given product will develop over time
The main goal of this research was to create an evaluation procedure based on the data of the areas belonging to the agricultural land use category on the land market, which allows the large scale evaluation of land use types less frequently sold and purchased which are significantly differentiated in size, utilisation and other relevant value-creating factors, within certain confidence limits
The value of the given area can be determined by using a correction factor for each land use type other than arable land
Summary
When an enterprise considers the use or extent of a given resource, e.g. land, it must first examine the expected demand and price conditions in the market of the products produced through the use of this resource, i.e. how the income-generating capacity of the given product will develop over time. Derived demand means that the demand for production factors depends on the demand for the products produced with that given resource. Production factors, such as the land market, can never be a perfectly competitive market, as most of these resources are scarce. A company can obtain more of the scarcely available factors if it has a higher marginal productivity of a given factor and has the resources, information and networking capital needed to obtain them
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