Leasehold estate

About: Leasehold estate is a research topic. Over the lifetime, 1589 publications have been published within this topic receiving 21480 citations. The topic is also known as: leasehold & tenancy.

Revisiting the tenancy-inefficiency question with an inter-temporal optimisation framework: insights from the agrarian set-up of Assam Plains in Eastern India

Abstract: Traditionally the tenancy-inefficiency debate is centred on the incentive problem of sharecroppers that induce them to under-supply inputs and effort in cultivation. The fixed-rent tenants are supposed to be free from this problem as the rents they pay are in the nature of fixed costs and hence do not enter marginal calculations. The present paper argues that even the fixed-rent tenants can have an incentive problem, albeit of the opposite type, if an inter-temporal optimisation framework is adopted. They may be inclined to use production-enhancing inputs like chemical fertilisers excessively so as to maximise returns from the land during their tenure, disregarding the implication of their action for long-term soil health. For empirical verification of the argument, the authors analyse survey data from Assam Plains, where land holders of all size class actively participate in the land lease market. While the sharecroppers have been expectedly found to use land less intensively than the owner operators, the fixed-rent tenants are seen using land much more intensively which can impair soil health in the longer run. Suitable reforms of the prevailing agrarian institutions have been called for to address the incentive problems of both sharecroppers and fixed-rent tenants.

Exploring investment paradigm in urban office space management: perspectives from coworking space investors in Nigeria

Abstract: Purpose: Coworking space had been a trajectory in the commercial space operation and management globally. Commercial coworking/tenancy space is confronted with an unexpected shift. This paper aims to examine the peculiarity and investment characteristics of flexible office space and the post-COVID implications on coworking office space practice and investment. This is with a view toward providing investors with an understanding of the dynamics underpinning flexible office space investment in the Nigerian emerging property market. Design/methodology/approach: This study adopted a qualitative research approach. Open-ended interview questions were used to solicit information from nine coworking space operators in the urban property market of Ibadan, Nigeria. The structured interview data were analyzed using Atlas.ti – a computer-aided qualitative data analysis software. Findings: The findings show that the factors influencing demand for flexible office space in the study area include flexibility, affordability, cost-effectiveness, entrepreneurship motivations and opportunity for risk sharing. The results also revealed that coworkers are predominantly mobile individuals who require a workstation away from their homes or a traditional office setup. Management challenges include deficient infrastructure, low level of awareness, stealing and high cost of operations. The impact of COVID-19 includes a drop in patronage, rent refunds, changes in working pattern and job loss, restriction to online and remote operation, the extra cost of putting prevention measures in place, changes in tenancy contract and drops in return on investment. Practical implications: This study has implications for investors in commercial space occupation and leases in comparable developing economies. Originality/value: The novelty of this paper lies in its relevance with the emergent behavioral changes, orchestrated from the novel COVID-19, which compels reevaluation of workplace practices and investment for economic improvement, especially as it relates to commercial real estate investment. © 2021, Emerald Publishing Limited.

Land Regime Choice in Close-Knit Communities: The Case of the First Nations Land Management Act

Abstract: Land interests on Canadian First Nations reserves have long been governed by the rigid and paternalistic provisions of the federal Indian Act, which require the permission of the federal Minister of Indigenous Affairs for even relatively minor land transactions. Yet an increasing number of First Nations have taken advantage of the 1999 First Nations Land Management Act (FNLMA), which allows First Nations to adopt a custom land code that replaces most of the reserve land provisions of the Indian Act in their community. This paper seeks to examine how First Nation communities have chosen to exercise their powers under this Act to define and regulate land interests on reserve. Working from a database of 33 FNLMA land codes, the authors focus on three discrete issues on which the codes differ: 1) whether to require a vote of the community as a whole for the grant of a lease in community-held lands to a non-member; 2) whether to require the approval of the band council for the transfer of a leasehold interest to a non-member; and 3) whether to require the approval of the band council for the inter vivos transfer of a member-held interest to another member. Each of these issues relates to the contentious question of how freely alienable land interests in indigenous communities should be, a matter that occupies a kind of ideological fault line involving considerations of economic efficiency and individual autonomy, on the one hand, and community cohesion and traditional culture, on the other. The authors make a number of observations relating to the links between the characteristics of communities and their choice of land regime. First Nations with substantial non-indigenous populations living on reserve were more likely to adopt rules allowing free alienation of leasehold interests, as well as free alienation of member interests among members. In addition, First Nations that adopted liberal rules for the transfer of interests among members experienced larger increases in the proportion of their members living off-reserve in the years following the adoption of their code. This may indicate that liberal transfer rules among members help to facilitate exit from the community.

Loss Aversion and Residential Property Development Decisions in the People’s Republic of China: A Semi-Parametric Estimation

Abstract: Loss aversion is a core concept in prospect theory that refers to people’s asymmetric attitudes with respect to gains and losses. More specifically, losses loom larger than gains. With the capability of loss aversion to explain economic phenomena, some of which are puzzling under expected utility theory, this concept has received significant attention. We develop a behavioral model of loss aversion to explain the development decisions by residential property developers in the People’s Republic of China. Under the leasehold property right system, real estate development has two stages—first to lease land from the government, and then to develop the property according to the lease terms. This presents a unique opportunity to test the presence and effect of loss aversion in real estate development decisions. More specifically, we determine when the land premium paid by a developer is substantially higher than the market value, whether and how this “paper loss” will affect the pricing of the housing products and development time of the project in future development. We use a sample of land and house transaction records from Beijing to test the hypothesis. This is the first study to use a semi-parametric model in estimating developers’ loss aversion. Results show that developers are most prone to loss aversion bias around the reference point or when facing large losses. The results also suggest that loss aversion contributes to the cyclical trading pattern in housing markets.

Agrarian Relations, Landlessness and Inequality: Case Study of Irrigated and Unirrigated Regions of Undivided Kalahandi:

Abstract: In rural areas, agriculture is the primary source of income, and the income depends on the primary factor of production, land. The higher the productivity of the land, the higher the income and gen...