3 ms·
Often I question why actual land is valuable. Why would you buy an office in a tower in the middle of traffic jam central? Housing around it is expensive. Food
by muzani 5y ago
Often I question why actual land is valuable. Why would you buy an office in a tower in the middle of traffic jam central? Housing around it is expensive. Food is expensive there too. Why not make offices in some out of town area with good rail access?
They make offices downtown because it's next to other major offices. There's an element of wasteful pride, the kind that comes with buying a Ferrari.
- hooby 5y agoReal land derives it's value from multiple sources. First of all, there's only so much surface area on the Earth - thus there's only a finite amount of land available. Limited supply. Secondly, people need a place to live, companies need a place for business, and farmers need fertile soil for farming, etc. - thus there is a real demand for land. Thirdly, value of land varies based on a whole number of factors - like where it's located, law restrictions and taxes, accessibility (traffic connection), desirability of the neighborhood, available services and utilities, air quality, noise pollution, existing real estate, etc. And lastly, speculation has of course an influence on prices as well.