In addition, the basis for the identification of the land parcel inventory is GIS spatial data which relates to the geographic coordinates as identifiers of the parcel. Much confusion exists in classifying land management systems as strictly GIS-based systems. Land management systems generally have 80 percent or more of their components as non-GIS components. This is because the primary focus of such a system is the creation of a database of land ownership or land rights or land titles. Not only is land management primarily a database or datawarehousing application, but it is also a national exchange system.
Land management is really a part of the mainstream real estate industry.
Land management, therefore, is a trading system as well as an inventory system. The stock exchange systems throughout the world have existed for the exchange of corporate stocks and securities. Such a system stimulates free market systems. In addition to the national sector's need for such systems for the exchange of private property, it is crucial to have such systems in place for foreign investment going into developing countries. The reason for this is international corporations many times require the purchase of land or the purchase of long-term leasing rights on land in order to construct new operations.