Land Cost Trend

Land Cost Regional Overview

Get the latest insights on price movement and trend analysis of Land Cost in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Land Cost Price Trend for the First Half of 2025

In the first half of 2025, global land markets experienced a mix of upward momentum and cautious corrections, shaped by rising development costs, shifting policies, and regional demand-supply dynamics. While some economies saw land prices surge due to reform and growth, others faced affordability issues or cooling demand.
 

Land Cost Chart

Please Login or Subscribe to Access the Land Cost Chart Data
 

In Vietnam, land prices rose sharply in several areas following the implementation of new land price frameworks under the 2024 Land Law. Designed to align prices more closely with market values, the changes led to sudden increases up to several-fold in cities like HCM City and Hà N?i. While these adjustments aimed to improve transparency, they created uncertainty for developers, stalling some projects and raising concerns about long-term affordability and investment competitiveness.

In China, the land market showed signs of stabilization. After years of uneven growth, prices in 2025 were more balanced due to tighter regulations and reduced dependence on land sales by local governments. County-level zones, in particular, became more attractive as pricing gaps with larger cities narrowed.

In Australia, residential land remained severely unaffordable. A lack of housing supply, restrictive planning laws, and a growing population continued to drive prices up in major cities. First-time buyers were especially affected, with rising costs outpacing wages despite some government support and interest rate cuts.

In the UK, land prices remained subdued in H1’25. High borrowing costs, despite some easing, kept investors cautious. Some regions saw price stagnation, while affordability remained a challenge in urban centres.

Analyst Insight

According to Procurement Resource, Land prices are expected to stabilize gradually, with emerging markets continuing to grow and developed economies facing a slower, more cautious recovery.
 

Land Cost Trend for the Year 2024

In 2024, land prices showed a mixed but generally resilient trend across global markets. Industrial land held steady or rose modestly in most regions, largely driven by continued demand for logistics, manufacturing, and data center infrastructure. Despite broader economic challenges, such as rising interest rates and construction costs, the scarcity of available land helped support values in many areas. Limited supply in prime locations pushed interest toward emerging regions, especially in Asia, where countries like Vietnam saw robust activity.

In Europe, demand remained firm, though stricter environmental rules and energy constraints began to influence site preferences and slowed down some development. Meanwhile, the expansion of digital infrastructure, especially data centres, increased competition for industrial land in secondary markets where energy access was more reliable.

North America saw a cooling in overheated urban markets, mainly due to higher borrowing costs. However, land prices stayed stable overall, as developers and occupiers turned their attention to more affordable inland areas. In Australia, land prices fluctuated regionally. While New South Wales saw a dip in land values due to economic pressures, parts of Queensland recorded double-digit growth, especially in high-demand growth corridors.

Residential land markets also showed varied performance, with some areas experiencing strong price increases due to renewed housing demand and improved buyer sentiment, while others softened due to affordability challenges and regulatory factors.

Analyst Insight

According to Procurement Resource, land prices are expected to remain stable or show modest growth, with demand continuing in sectors like logistics and housing, though gains may be slower in high-cost or heavily regulated regions.
 

Land Cost Trend for the Year 2023

In 2023, land prices around the world showed mixed performance, reflecting a year marked by rising interest rates, inflation, and shifting buyer confidence. Overall, the trend leaned towards moderation, as financial pressures and reduced borrowing power affected both residential and industrial land markets. While some regions still saw growth driven by strong demand and limited supply, others experienced price corrections after years of rapid increases.

In developed markets like the UK and Australia, land prices came under pressure due to rising construction costs and aggressive interest rate hikes. This made financing more difficult, slowed down sales, and pushed prices downward especially in areas that had seen rapid growth during the pandemic. Despite that, certain growth corridors in regions like Queensland continued to show resilience, backed by ongoing infrastructure development and first-home buyer interest.

In Asia, countries like Vietnam remained strong performers in the industrial land segment, fueled by foreign investment and high manufacturing activity. Meanwhile, China's market began to balance out, with less disparity between urban and rural industrial zones due to government reforms and reduced land-based financing.

Globally, residential land also faced challenges. High borrowing costs led to fewer transactions and a drop-in buyer activity in many cities. Although values didn’t crash, many markets saw land prices flatten or dip slightly, especially where affordability issues became more pronounced.

Analyst Insight

According to Procurement Resource, Land prices are expected to remain stable with slight growth in areas supported by infrastructure, while interest rates and buyer confidence will continue to shape demand.
 

Land Cost Trend for the Second Half of 2022

The real estate markets across the Asia-Pacific region continued to perform well in the second half despite the loss of some growth momentum owing to the difficult economic conditions marked by high inflation and rising interest rates.

Japan's land prices gained the most given the loose monetary policy and the lifting of COVID restrictions which fueled the demand for offices, hotels, and housing. The biggest gains were in commercial areas, which saw an average increase of 1.8%, however, the gains were not uniform as many areas still suffer from the phenomenon of depopulation.

In India, investments in the commercial office sector saw a jump of 53% January-September 2022, to the same period last year. The total investments in Indian real estate touched USD 3.6 bn in January-September 2022. In Delhi NCR, the average price of new launches shot up by 64% to Rs. 10,958 per square feet as compared to the year before.

Analyst Insight

Even at higher prices, there is sizable demand and healthy absorption for these new launches. Hence, the same momentum is likely to continue in 2023 with new developers entering the market affecting the prices of land.
 

Land Cost Trend for the First Half of 2022

In the said period, real house prices worldwide rose by an average of 4.6% year over year. This strong growth in real terms was driven by a surge in nominal prices of +11.2%, the first double-digit increase since the Great Financial Crisis, which was partially offset by an acceleration in consumer price indices.

Real housing costs increased significantly in Turkey (by around 35%), Canada (20%), Australia (14%) and the United States (12%). In Brazil and India, they decreased by 3-4%. Global property prices are currently 29% higher than their immediate post-GFC average levels in real terms. In the AEs, they have increased by 41%, and in the EMEs, by 19%.

Procurement Resource provides latest prices of Land Cost. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.