Prior to the industrial revolution, the value of land was mostly in the large swaths of agricultural farmlands. Arguably, a squared meter in a city was more valuable than in a farm but the difference was less stark than now. And in aggregate the majority of the value of land came from farms.

Today, farmlands and in fact rural plots account for a small part of the total value of land. The vast majority comes from the cities. We became more productive and required a lot less land, but our productivity depends highly on our location relative to each other. And we still need land to exist, even if the land itself is not a "key input".

In the long future, we may all live in a massive super computer wherein we are all simulated. But even there, proximity between chips is vital.

The vast majority of the value of land is converging to increasingly smaller patches of space.