Are good way to start and in a much as I see LanDao trying to do the right thing, I think they have to make enough room for people to be able to buy these lands in smaller quantities there by making these NFTs cheaper to afford and making it appreciate over time.
Yes, the price movement of their NFT will be solely be dependent on the actual physical factors like development or crisis which also has to do with location and security. Lands on rural areas will be bought for cheaper NFTs because of low rate of security and development compared to that of urban areas.
The price of this lands will also vary due to physical factors like size(depending on the plot of the land), soil quantity, drainage patterns, because poor drainage may lead to water logging or erosion issues and also how much development or activity the Land can support.
But regardless, they will have to still make it cheaper for large range of people to purchase it. In that way, people can still go for land in rural areas and end up developing it in as much as it will be accessible like proximity, roads and infrastructures development plans and amenities.