The major reason why land is valuable to people is:

Land is limited-availability commodity because there is only a certain amount of land available and there is growing demand for land almost everywhere.

Whenever you have a situation in which there is only a limited amount of a commodity available, and a growing demand for this commodity (such as land), the price of that commodity will rise. And the longer such a commodity is held, the higher (in general) its price will rise. So you can’t lose on raw-land investments if you:

• Pick your land carefully, after you
• Analyze the direction of development,
• Study the speed of development, and
• Wheel and deal for the lowest price.

Towns and cities usually grow in population as time passes. This growing population needs space-that is, land. To satisfy the demand for more space, almost all communities expand horizontally. To expand horizontally, or on the flat, land must be developed, that is, subdivided into:

• Lots, with
• Access roads and
• Side streets, having
• Sewers, and
• Water supply, and
• Electricity

If you can predict the probable direction of horizontal expansion of a town or city, you can make big profits by:

• Buying raw land in the path of the community growth
• Holding the land until the growth reaches you
• Selling out to developers at a suitable price

Or you can, if you wish:

• Hold onto the land, instead of selling it
• Develop the land yourself
• Sell the developed raw land to builders
• Go into the construction business and build houses or other structures on your developed land

Thus, you can see that your potential is almost unlimited – if you buy in the direction of growth.

Source