Land is unlike other commodities that can be  bought and sold in that it is immoveable. Buildings upon it can be dismantled and moved elsewhere but the land on which they stand cannot be moved. Only the rights to use the land can be bought and sold. 
Land markets exist when and wherever it is possible to exchange rights in land for agreed amounts of money or services rendered.  The ability and capacity of banks and other financial institutions to lend money is underpinned by an efficient land market, which in turn requires an efficient land administration system.

The efficiency of the land market varies across the world together with its openness to public scrutiny and support for the concepts of sustainable development.   In less economically developed societies, and in particular where informal settlements exist, it has not always been possible to develop an effective land market and this leads to under-capitalisation.  In order for a land market to develop and be maintained  a number of critical factors need to be in place.  In addition to clear policies and enforceable laws, the institutional framework needs to provide for consistent, responsible and accountable decision-making within the overall national land policy. There must also be a land registration system that is affordable so that all citizens, especially women and minority groups, rich and poor, can have access to it. 

The entire paper can be downloaded in pdf format:
Land Markets - Why are They Required and How Will They Develop?