The Key Factors That Determine The Value Of Land

Posted on: 24 May 2022

The value of land can vary greatly depending on several factors. While the market for land can be volatile, understanding the key drivers of land value is essential for those looking to buy or sell land.

This post highlights the two most important factors that influence land sale prices to help you understand how these factors play into the market.


Land located in a desirable neighborhood or close to amenities will be worth more than land in a remote area. People are willing to pay more to live in a convenient location. So the closer the land is to population centers, the more valuable it will be.

Similarly, land with good transportation links will also be more valuable than land that is difficult to access. For example, land near a major highway will be worth more than land that is only accessible by a dirt road. It's easier to commute to work or travel to other places if the land is well-connected.

In some cases, land that has natural features such as forests or rivers will also be more valuable than land without these features. This is because these features add to the beauty of the land and make it more enjoyable to live on.

Ultimately, the value of land is determined by its location and the nearby amenities and features. So keep that in mind when you're looking to buy some land.


Size is one of the primary factors that affect the value of land. The larger the parcel of land, the more valuable it is typically considered to be –– with all else being equal.

There are a limited number of large parcels of land available, and they are highly sought after by developers and investors. This is especially true in urban areas, where land is scarce. As a result, the price per acre of land tends to increase as the size of the land decreases.

In addition, large parcels of land tend to have more development potential than smaller ones. They can be divided into a greater number of smaller parcels, or they may simply offer more space for construction. In addition, large pieces of land zoned explicitly for commercial or industrial development are typically worth more than land zoned for residential development. Large pieces of land used for commercial or industrial purposes are more versatile and can generate a higher return on investment.

But there are exceptions to this rule, where smaller pieces of land are more valuable than larger ones. This is usually the case where the smaller piece of land is in a more desirable location. So consult with a land sales company to understand land sale values in your specific area.