Here's my thoughts:

At the current market value of housing, even IF it gradually devalues over time, this would be a HUGE disservice to people who currently own/want to own.
Housing would have to become FAR more affordable before land seizures/reclaims could become even remotely reasonable.
Someone mentioned players who are military and deployments. . . Don't do that to our men/women who serve. Time is already a precious commodity for them.
The housing market itself will become a risky investment. If casual players can make the money (and they can), but can't commit the time (due to work, school, military service, and other circumstances beyond their control), they will not buy.

Please have your team responsible consider the downsides of such an implementation.