Abstract—The paper explores the relationships between land use,
land price, and land value. It draws on the value model with
explaining and analyzing the relationship between land value and
land use, especially each type of use. The paper starts with an
overview of a limited number of economic theories on the land
market and subsequently introduce some well known land use models
of economic theories on the principles. Later, the paper analyzes the
variables affecting land use functional structure of the city namely:
geographical, economic, urban, laws and legislation , political,
environmental, social, public interest, and demographic variables.
Finally, the integrated value model will be developed in this study.
The value model is a mathematical based model for simulating future
land use, especially in valuable lands; that has a foundation in
economic equilibrium theory.
Keywords— Economic theories, land use models, land price,
land use, land value, variables, value model.
I. INTRODUCTION
and use is considered one of the essential factors
influencing the pattern of urban development. The limited
space within cities combined with the growing space
requirements for various purposes outlines the framework of
the struggle for land for different purposes and by different
vested interests. The difficulties in land use planning result
from the contradiction between the rapid technological
changes which influence urban growth and the slows process
of planning which allocates land use. Land use in the city has
a unique structure, mostly due to the interactions between its
spatial configuration and functions, developing into a
patchwork of functional regions of different forms.
Governments use land use planning to manage the
development of land within their jurisdictions. In doing so, the
governmental unit can plan for the needs of the community
while safeguarding natural resources. To this end, it is the
systematic assessment of land and water potential, alternatives
for land use, and economic and social variables in order to
select and adopt the best land use options. Through this
process, governments need to use some tools like computer
and mathematical models to guide land use to the optimal use.