Land use forecasting

Using mathematical models, Cube Land forecasts land use by simulating the real estate market under different economic conditions. For a user- defined scenario, Cube Land forecasts the supply and the demand for different types of properties, and estimates the location of households and non-residential activities.

 Cube Land evaluates the impacts of:

• Economic growth
• Changes in population, employment, and wealth
• Urban management policies
• Specific real estate projects
• Transportation projects
• Changes in consumer behavior

Using a rigorous microeconomic approach, Cube Land finds an economic equilibrium between land supply and demand. The process also considers perceptions of the real estate market, market restrictions, and regulations.

CUBE LAND CONCEPTS
Cube Land uses a “bid function” for each consumer. The bid function estimates property values in the market and defines rents and the location patterns for activities. The bid function considers consumer preferences, perceptions of parcel attributes, and budget restrictions.

Cube Land locates the highest-bidding consumers—either households or economic activities—on each land parcel. In this way, Cube Land auctions real estate.

Cube Land uses variables to represent the characteristics of consumers, properties, and neighborhoods. Such variables might include indices that represent accessibility to the transportation system, environmental quality, and location.

Cube Land simulates how regulations and restrictions influence the real estate market. Regulations can vary by zone and by consumer type. These include:

• Maximum area of land available for development
• Minimum property sizes
• Maximum land utilization
• Maximum building height
• Type of land use
• Limits for residential density and population (min and max)

Cube Land also captures location subsidies and tax policies.