Market price of construction land is a prerequisite for accomplishing more efficient urban development in Serbia. In addition to theoretical presentations of the town development processes, basic indicators of the urbanization process in Serbia are also provided. These indicate that Serbia has encountered high concentration in the central town to the determent of rural and smaller urban settlements. Various forms of state interventions at the land market are given such as: urban and spatial planning, land and tax policies. It is emphasized that the land policy must bi in the function of stimulating local development together with urbanism and tax policy.