Land and Building Values

Abstract

Danish Journal of Geography 95: 59–70, 1995.

The present paper examines the relationship between developments within the built environment and the land (sites) on which they are situated. It has four parts: Firstly, problems related to an urban concept as well as the concept of a “built environment” are examined. Physical as well as economic lifetime of urban structures are considered in relation to urban land, and problems related to the urban land market are discussed. It is concluded that—as urban land is socially produced and has a fixed location which is inseparable from the buildings located on it—specific problems arise when the buildings decay. Secondly, problems with respect to industrial restructuring and the built environment, particularly in the Copenhagen area, are reviewed. Thirdly, an idealized model of the development cycles of the built environment is presented and a number of individual empirical examples are examined in relation to the model. Finally, it is concluded that the changing relations between property value and building value add important aspects comprehending the dynamics of the built environment. External relations, however, such as planning status, development within public services, economic megatrends etc. must necessarily be included in an analysis in order to get the full picture.

Key words:

• Land rent
• built environment
• life-cycles