The value of a house depends to a very large extent on the location, land where it has been constructed. While cost of construction of a home or building is almost the same in all places around the world for the same quality, there are a lot of variations in the price of land depending on where the home or building has been constructed and prices are higher in large cities due to the limited supply of land
Hence the ability to predict the development of the area, is an important factor determining the profit made by a land investor