Land valuation involves determining the market value of the land, or market value of land lease. The market value of the land primarily depends on its location and the influence of external factors, as well as supply and demand in the land market. The market value of the land may not exceed costs of acquiring another area with equivalent utility.
Land valuation takes into account qualitative and quantitative composition of communications and the possibility of joining to existing networks, if real estate construction planned on a land plot.
An important factor in land assessing is data about geological and geodetic surveys, allowing to determine the composition, condition and properties of soils, as well as information about terrain, necessary for forecasting the possible construction and the costs related to construction.