Land Cost Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Land Cost in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Land Cost Trend for the Second Half of 2022

The real estate markets across the Asia-Pacific region continued to perform well in the second half despite the loss of some growth momentum owing to the difficult economic conditions marked by high inflation and rising interest rates.

Japan's land prices gained the most given the loose monetary policy and the lifting of COVID restrictions which fueled the demand for offices, hotels, and housing. The biggest gains were in commercial areas, which saw an average increase of 1.8%, however, the gains were not uniform as many areas still suffer from the phenomenon of depopulation.

In India, investments in the commercial office sector saw a jump of 53% January-September 2022, to the same period last year. The total investments in Indian real estate touched USD 3.6 bn in January-September 2022. In Delhi NCR, the average price of new launches shot up by 64% to ?10,958 per square feet as compared to the year before.

Analyst Insight

Even at higher prices, there is sizable demand and healthy absorption for these new launches. Hence, the same momentum is likely to continue in 2023 with new developers entering the market affecting the prices of land.

Land Cost Trend for the First Half of 2022

In the said period, real house prices worldwide rose by an average of 4.6% year over year. This strong growth in real terms was driven by a surge in nominal prices of +11.2%, the first double-digit increase since the Great Financial Crisis, which was partially offset by an acceleration in consumer price indices.

Real housing costs increased significantly in Turkey (by around 35%), Canada (20%), Australia (14%) and the United States (12%). In Brazil and India, they decreased by 3-4%. Global property prices are currently 29% higher than their immediate post-GFC average levels in real terms. In the AEs, they have increased by 41%, and in the EMEs, by 19%.

Procurement Resource provides latest prices of Land Cost. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.