The Value of Building Plots in Italy

This paper suggests some analysis on dynamics of building plots value in Italy. This is an important subject, since the study of changes in plots value in space and time enables the evaluation of urban rent, which is essential for a fair and effective planning. The analysis confirm past hypothesis which are well known to real estate market operators. The first resulting fact is that the changes in building plots value are concurrent to those in real estate value and the increase occurring in the last years is in relative terms higher than the past one. This seems to confirm that, during real estate market expansion, most of the increase of buildings' value is attributable to the land rent. The second observation is about value dynamics over time: it has been observed that, during an expansion in demand, the value significantly increases in central areas, much more than in peripheral ones; this means that absolute rent arising from shortage in urban areas is higher than the differential rent created through urban expansion in peripheral areas. Finally, it was highlighted that the factors affecting the value in building areas play different roles, depending on their location relative to the urban centre, identifying differently structured market segments