Determination of land rents for the Netherlands

“Corn is not high where rents are high, but rents are high where corn is high.”Average land rent per pc4
David Ricardo

Information on variation in land rents can be an important tool to value amenities, accessibility, public goods, et cetera. A huge empirical literature using hedonic pricing techniques uses this insight for the purpose of valuation of individual aspects of the location, such as accessibility of jobs, facilities and open space, noise levels, et cetera.
Despite the importance of land rents for policy purposes, surprisingly little systematic information on variation in land rents is available. In so far as local governments have information on actual transactions, this information is oftentimes not publicly available.

Our aim is to fill this void by providing figures on land rents for the whole Netherlands on a detailed spatial level.
We present a simple methodology to derive land rents from housing prices by exploiting information on variation of lot sizes.
The methodology is used for the Netherlands using unique information on more than one million transactions over the period 1985-2007.
The spatial variation in derived land rents is illustrated as well as the association with, among others, population density and distance to the city centre.

For more information, see www.landvalues.nl.

Publications related to Land markets & prices

apppdf.gif (189 bytes) Kennedy, E., Comparing valuation methods for ecosystem services in Amstelland; Applying ecosystem service valuation methods to evaluate land-use changes, Bachelor thesis Earth and Economics, VU University Amsterdam, 2014.
Remarks: Evaluated: 1 July 2014
– Supervisor: Koomen, E.
CPB De Groot, H.L.F., Determination of land rents: A simple approach, , Vrije Universiteit, Amsterdam, 2011.
VU-DARE de Vor, F., The Impact and Performance of Industrial Sites, Ph.D. Thesis, Tinbergen Institute Research Series, Vrije Universiteit, Amsterdam, 2011.
Regional Studies de Vor, F., de Groot, H.L.F., The Impact of Industrial Sites on Residential Property Values: A Hedonic Pricing Analysis from the Netherlands, Regional Studies, 45 (5), pp.609-623, 2011.
Springer Dekkers, J.E.C., Rietveld, P., Explaining land-use transition in a segmented land market; potential input for Land Use Scanner. Chapter 9, in: Koomen, E., Borsboom-van Beurden, J. (eds.), Land-use modelling in planning practice. GeoJournal Library Vol. 101, Springer, Dordrecht, 2011.
VU Libary Donovan, S., Space Matters: Agglomeration Economies and Spatial Competition in New Zealand, MSc. Thesis, Vrije Universiteit, Amsterdam, 2011.
apppdf.gif (189 bytes) Koomen, E., Rietveld, P., Dekkers, J.E.C., Towards an integrated approach for incorporating socio-economic and biophysical processes in local scale land-use modelling, Abstract European Regional Science Conference, Barcelona, Spain, 30 August – 3 September, 2011.
CPB De Groot, H.L.F., Marlet, G., Teulings, C., Vermeulen, W., Stad en land, CPB Bijzondere Publicatie, Den Haag, 2010.
VU Library Dekkers, J.E.C., Externalities, land use planning and urban expansion, Ph.D. thesis, Vrije Universiteit, Amsterdam, 2010.
VU-DARE van der Straaten, J.W., Essays on Urban Amenities and Location Choice, Ph.D. Thesis, Tinbergen Institute Research Series, Vrije Universiteit, Amsterdam, 2010.
Tinbergen Institute Debrezion Andom, G., Railway impacts on Real Estate Prices, Ph.D. Thesis, Tinbergen Institute Research Series, Vrije Universiteit, Amsterdam, 2006.