Price of Land = Value of Developed Parcel To User - Cost of Construction - Legal and Government costs - Any other costs during the development or after the deve

Price of Land = Value of Developed Parcel To User - Cost of Construction - Legal and Government costs - Any other costs during the development or after the development including Time value of money of property taxes. This equation holds true in the US, and should hold true in India. The reason for US subsidies is that sometimes, the right side of the equation is still negative because the value to the end user is so low (think section 8 where tenants only have $500/month or less to rent housing, feed their family etc.) Building a $500 house will only be beneficial to people if the right side of the equation has a value less than 0. If the value of the right hand side of the equation is greater than 0 then the land value simply goes up.