Analysis Of Land Market In Taraof Omsk Region

Abstract

The issue of regulating land relations has always been one of the key issues not only in the Russian Federation but also throughout the world. The peculiarities of land as a resource, its non-renewability, the impossibility of changing its location and its limitations require a special approach when regulating the use of each land plot. The paper reflects the results of research in the field of present-day land relations in Tara (Omsk region) ensuring effective land use. It analyses the natural-climatic and socio-economic conditions of the territory under consideration as well. The state and dynamics of land distribution by functional purpose and land categories is analyzed. The demand for residential space in the city and the increase in development at the expense of land not involved in urban planning activities are researched. The distribution of the settlement lands by forms of ownership is studied. The article analyzes the segmentation of the land market in the city of Tara, assesses the activity of transactions by segment, and provides a comparative analysis of the pricing policy for various land plots. The results of the study can be used in the development of programs for the implementation of the effective use of land resources in the city of Tara and other territories, as well as in projects aimed to ensure a sharp increase in the investment attractiveness of territories in the regions, the involvement of land and real estate in the viable economic turnover of land resources.

Keywords:

Introduction

Land is a unique natural resource. In this regard, land and property relations are the central link in socio-economic relations.

Improper use of land resources can entail not only environmental but also serious socio-economic problems, as a result of which the efficiency of the country’s economy and the quality of life of the population will significantly decrease. In this regard, the issues of rational management and use of land resources, the establishments of land ownership forms, the degree of rigidity of its use are the most acute issues, and need to be studied in detail. Currently, there is no model of land management suitable for different regions and effectively applied with regards to the characteristics of a particular region (Ageev, 2014; Bader et al., 2019).

The basis for the information background of the research was studying land management experience, analyzing the socio-economic development of Tara, studying national and local normative and legislative acts on the management and regulation of the use of land resources as well as the volume of transactions made in the years 2017 - 2018 by the Administration of the Tarsky Municipal District, interpreting statistical materials on the socio-economic development of the region and data on the provision of land management and cadastral works.

Problem Statement

Currently, the growth of the cities’ population results in an especially acute problem of inability to provide people with land plots suitable for conducting various activities. Not all land plots meet the requirements concerning their permitted use. Thus, the land plots for private subsidiary farming or private housing construction do not always have a fertile soil layer or there is groundwater, uneven relief, lack of utilities, poorly developed infrastructure, etc. All these factors are of significant importance for the choice of land and its pricing policy.

In this regard, the analysis of the land market in Tara will contribute to considering the issue of forming a pricing policy for land plots using a specific example, which in turn will enable to segment the market for the objective to use it more rationally and efficiently.

Research Questions

The object of the research is the land market of Tara, Tarsky Municipal District of the Omsk Region.

Purpose of the Study

The purpose of the study is to analyze the land market of Tara and to study the activities for the land market functioning carried out in the city.

Research Methods

The following research methods were used: theoretical (theoretical analysis and generalization of scientific literature, periodicals; newspapers, materials of the Internet; system analysis; defining and synthesizing the main components; analysis of the data obtained), empirical (comparison of the obtained data and their analysis) and mathematical (statistical data processing).

Findings

Tara is located in the north of the Omsk region, 302 km from the regional center being Omsk. The city is located on the left bank of the Irtysh River. The territory of the region belongs to the near taiga zone of the West Siberian Lowland. Most of the city’s territory does not have a pronounced slope. There is a small micro topographic low, in which there is a seasonal accumulation of melt and atmospheric-sedimentary waters, which in turn contributes to the swamping of certain parts of the urban area. These are such streets as Nerpinskaya, Gorky, Omskaya, Tarskaya, Beregovaya, Gogolyeva, Zelyonaya. Almost all these streets are located in the northwestern part of the city Tara and have a low level of prices for land plots due to the swampy area (Eliseeva et al., 2017; Petrov, 2016, Petrov, 2017; Petrov, 2019).

The total area of urban land within the city is 11,864 hectares. The area of built-up land is 1,264 hectares. The total area of landscaped areas within the city is 600 hectares including parks and squares which occupy 47 hectares, urban forests occupying 382 hectares, landscaping of the road network taking up 60 hectares. In recent years, there has been an intensification of municipal land control aimed to identify ineffective land users by the city administration to increase the tax base. The land fund of the Tarsky district largely consists of agricultural land, which accounts for up to 57.3% of the total area and its 38.4% is occupied by a forest land. Lands of settlements make up 1.7% including 141.1 thousand hectares of rural settlements. Territories occupied by industry, forests, water bodies and land of urban settlements are practically equal in size.

In general, for the period from 2014 to 2018, there were no significant changes. The territory for residential development increased by 40 hectares and at the moment this area is occupied by the microdistrict Shirokovo. This, in turn, indicates the social and economic development of the city and the concern of local government to improve the quality of life of the population.

The distribution of settlement lands by forms of ownership is as follows: the main type of settlement lands used by citizens on the basis of property rights is for agricultural use, which makes up 87% of the area. Residential building lands make up 12%, while the percentage of public and business buildings and industrial lands is only 1 percent.

With regard to agricultural lands used by legal entities, the same situation is observed with the prevalence of these lands, which is 64%. 23% is occupied by industrial land and 12% by public business development (Grishin, 2011; Komarova et al., 2019).

The real estate market is divided into parts (segments) based on the purpose of real estate and its attractiveness for various market players (Rogatnev et al., 2019; Zhuravleva, 2019).

Market segmentation is the process of dividing participants in the real estate market into different groups with similar query criteria.

In Tara, the segmentation of the land market is most widely used by location, the degree of arrangement and the method of making transactions on the primary and secondary market.

In Tara, there is a great demand for those plots that are located in the central part of the city, and accordingly the price for such land plots is much higher than for the ones on the outskirts of the city.

The plots with all engineering and energy communications are ideal for sale. Such a land plot must have electricity, water supply, sewerage, gas pipeline (if possible). Such plots withdraw from market very quickly even in spite of its location. This is due to their shortage in the real estate market.

On the land market of Tara, most land plots have the type of permitted use “for private subsidiary farming” and “for private housing construction”. If, according to the rules of land use and development, it is impossible to change the type of permitted use, then it can be used only for its intended purpose.

Tara has the most active primary land market. The primary land market is a set of transactions with state-owned land plots.

As a result of the increase in the cadastral value since January 10, 2015, the redemption price of a land plot has increased approximately by 2 times. However, despite this, the redemption value of land plots in state or municipal ownership remained significantly low.

Land plots enter the secondary market as products that were previously in use and belonged to a specific owner being an individual or legal entity (Raisberg, 2015; Sokolova., 2017).

The low activity of the secondary land market is observed both in the entire city and in the district. At the same time, 43 land plots are put up for sale. Additionally, the period for the sale of land plots on the market is different ranging from one week to several months. There are outbreaks of activity in sales offers (these are spring and summer periods), which are caused by various reasons (Petrov et al., 2017, Sokolova & Zakharova, 2019).

The land market in Tara is limited and functions mainly through the transfer of state-owned plots for lease or the transfer of land plots to the ownership of citizens. The area of land plots involved in all transactions in 2018 (lease, sale, transfer of land plots to permanent perpetual use) was about 148.3 hectares.

In 2018, 221 lease contracts were concluded (119.433 thousand ha). The complete information is in table 1. The majority of the lease agreements were concluded for land plots for private housing construction and private subsidiary farming.

Most of purchase and sales transaction concerning land plots were performed with urban land (210 contracts) and the smallest part was represented by the transactions with regional land (28 contracts). In 2017, the Administration of the Tarsky municipal district received 26 applications from individuals for the provision of a land plot into ownership. Those were 19 land plots with the type of permitted use “Forprivate plot activities”, 7 land plots “Private housing construction”. 2 applications were received from legal entities for granting land plots in ownership with the objective to use them as production areas.

Information about offers for the sale of land plots in Tara was obtained as a result of analyzing the data provided by the real estate agency “Sodeistvie”, the regional newspaper “Tarskoye Priirtyshye”, and proposals on the website www.avito.ru were considered as well.

Another pronounced segment that affects the price is the arrangement of the site. Gasified land plots on the street Transportnaya, which is located on the outskirts of the city, is not inferior in price category to the land plots located in the central part of the city. The foundation on the land being the object of sale also plays a role in the price formation. Such sites are in third place in terms of cost. The most purchased land plots are those ones whose price does not exceed 300,000 thousand rubles. On plots of this price category, there are either no communications, or only the basic ones (light and water supply).

Conclusion

The land resources of the Tarskydistrict are characterized by constant variability, i.e. change in different types of land (both agricultural and non-agricultural land). This is typical for a developing society but it must be scientifically reasoned and cost effective.

In the Tarskydistrict, the analysis of transactions with land plots, which are in state or municipal ownership before the delimitation of state or municipal land ownership, indicate that the most common type of transactions with land plots in Tara is their lease. The studies were carried out using the equipment provided by the center for collective use of the Omsk State Agrarian University “Agricultural and technological research”.

References

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