An Empirical Investigation of Agricultural Land Price Determinants in District Charsadda

This research aims to examine the characteristics of agricultural land parcels in the district Charsadda of Khyber Pakhtunkhwa and identify important factors influencing agricultural land prices.  For this purpose, a sample of 100 land parcels with transaction records for the year 2023 was randomly selected from 10 villages in the Charsadda district. Information was collected on prices and their agricultural, geographical, and physical characteristics. The characteristics of agricultural land were summarized using a descriptive statistical approach. A Linear Hedonic Hedonic Pricing (HPM) model was used to evaluate agricultural land prices based on physical, locational, and agricultural characteristics. Due to their significant residential and commercial value, the results showed that the price of agricultural land parcels in the Charsadda district is comparatively high. The construction of roads, Hospitals, Schools, and Gas supply in Charsadda city attracts more people from the district's rural areas, raising the demand for commercial and residential land. Due to high demand, the agricultural land that is being used for residential and commercial purposes increases the land prices. According to study findings, about 22% of agricultural land is used for commercial and residential purposes. The findings of the study showed that irrigation water availability and soil fertility are the important factors of high agricultural land prices. Location-associated characteristics such as city and road distance, distance from residential to market, and agricultural land are the significant determinants driving agricultural land prices. To address the rising agricultural land prices in Charsadda, a comprehensive land use planning policy should be implemented.