What does the term 'land value' refer to?

The term 'land value' primarily refers to the worth or monetary value of a specific plot of land. This value often takes into account various factors such as location, size, topography, and the potential for development or use. Land value is a crucial concept in real estate, urban planning, and economics as it influences property taxes, investment decisions, and urban development patterns. Understanding land value helps stakeholders assess how much a piece of land is worth in the context of its current and potential future use.

While aesthetic appeal, profitability, and historical significance can influence a property’s market dynamics and desirability, they do not define 'land value' itself, which is strictly focused on the economic worth attached to the land.