Land value functions and land price indexes in Cracow, 1993-1999

This research provides new insight into the evolution of an urban land market in a centrally planned economy undergoing transformation. In Poland, land use decisions were previously made administratively but during the time frame of analysis from early 1993 to late 1999 were being driven by market forces. The results of this initial study are that the fit of the estimated land value functions declines as time passes and that in most cases the slope of each of the land value functions becomes steeper as time passes. We attribute the latter result to real relative increases in transportation and opportunity costs. Separately, the availability of infrastructure is shown to have significant impact on lot value. (C) 2001 Elsevier Science.