DETERMINANTS OF LAND VALUE: A CASE OF KAPAN IN BUDHANILKANTHA MUNICIPALITY

Abstract

This research is based on the approach to evaluate the determinants of land value and analyses certain variables affecting land value considering the approach of land valuation from Nepal government, commercial bank, land valuator, brokers, and land buyer. This research presents the results of an empirical study of urban land values in the Kapan, a case of Budanilkantha Municipality.The urban growth rate of Kapan is 12.6 percentages. In rapidly growing areas where there is a strong pressure on serviced urban land, the distribution of population densities and land prices are expected to show basic differences. The data sets are organized at different levels of aggregation: i) the ward level comprising a total of 9 wards within the boundaries of Kapan that has been categorized into 3 clusters i/e Cluster A, Cluster B, and Cluster C according to the areas set by the government. The study focuses on the tendency toward agglomeration for consumers of each land use as measured by the impact on land values in the central business district, suburban nodes, and other employment concentrations. The results provide insight into several influences on urban land value and offer evidence that office land derives greater benefit from agglomeration than does commercial land. This paper shows the differences in land prices that can be obtained according to the width and quality of roads. Urban policy and planning may be improved by a better understanding of the determinants of urban spatial structure. Characteristics of the site such as i.) Location, ii.) Quality and width or road, iii.) Proximity to infrastructures, IV.) Proximity to the commercial and market areas v.) Distance from CBD, VI.) The future expansion projects were found responsible in an increase in land values. Different determinants of land values of various variables and their capacity to explain the spatial structure of a small area over a while has been shown in this research.