Building land is becoming increasingly scarce. It is therefore not surprising that the average prices of building land in Flanders continue to rise. But which factors actually determine the value of building land and are you better off selling building land to a private client or to a project developer? Verhelst Vastgoed’s tips help you make the right choices. Visit Lahore DHA Files for more information.
Average prices for building land
In 2018, the average prices of building land in Flanders , according to Statistics Flanders, still fluctuated around 177 euros per m2. The cheapest building plots cost 76 euros per m2, the most expensive no less than 1,000 euros per m2. Nowadays, average prices for licensed and ready-to-build land of 210 euros per m2 are no longer an exception. The location is therefore certainly a determining factor for the value of building land, but not the only one. We list the most important price-determining criteria:
What factors determine the value of building land?
As with any real estate transaction, supply and demand determine the value of building land. Only the government has a significant impact on that price in the case of building land. The Spatial Implementation Plan (RUP), construction plans (e.g. BPA) and local regulations , among other things , are decisive in determining the value of building land.
Bare building land or ready for building and licensed?
Of course, a bare building plot without permits is worth a lot less than a building plot that is ready for construction. Every prospective buyer knows that obtaining the necessary permits takes a lot of time. Moreover, it is never certain that the desired permits will actually be obtained. It is therefore certainly worthwhile as a seller to collect the necessary information before you offer the building plot for sale!
Are you selling industrial land, agricultural land or building land with the main purpose of living? And does a subcategory apply, such as Valuable agricultural area or residential area with a recreational character ? The government decides what a prospective buyer may build on the land in question and what activities are permitted . The guidelines for spatial planning have been established in advance at both the regional level ( Spatial structure plans ) and the local level ( Zoning plans ) .
Permissible buildings and permissible density
The type of building allowed on the building land is also defined by the government. Can only detached houses be built or also apartments? If you want to sell a building plot to project developers, the “ permitted density ” is extremely important. How many homes per hectare, how many storeys and how many residential units may be built determine the developer’s profit margin and are therefore directly linked to your sales price!
Lot size and shape
Wide plots are worth more than narrow and deep plots. After all, wide plots provide more options in terms of facade width and the accessibility of above-ground parking spaces. However, a larger piece of land is not necessarily more interesting than smaller plots. On the contrary! Unless, of course, the large piece of land can be subdivided further. After all, there is more demand for affordable land (read: smaller plots) than for large building land for more expensive construction projects.
Nobody wants to buy polluted soil. This entails undesirable health risks and the soil must be cleaned up. Potential buyers want to avoid this risk and the considerable clean-up costs, or at least include them in the purchase price. Therefore, always verify the soil certificate and also surf to the website De Grote Grondvraag of the Flemish government. It provides a clear overview of the health of Flemish soils.
How smoothly will future residents get to work, schools and shops by public transport or car? The less travel time is required, the more pleasant for residents and the better for the environment. The Mobiscore of the Flemish Government already gives a first indication of the accessibility and environmental impact of the building land location.
Is the building plot immediately available for use by the buyer or does he have to wait until there is a decision regarding the right of pre-emption or attachment? You also want to state these points clearly when you sell a building plot. The cheapest building plots cost 76 euros per m2, and the most expensive no less than 1,000 euros per m2. Nowadays, average prices for licensed and ready-to-build land of 210 euros per m2 are no longer an exception
In addition to the above criteria, there are also certain points for attention that make your building plot attractive to prospective buyers:
Orientation of the plot:
A sun-oriented garden is always pleasant.
Nature and bearing capacity of the subsoil:
This determines which type of foundation is required to prevent subsidence (eg clay soil versus sandy soil). The lack of level differences is also an important asset.
A ready-to-build building plot with grass or shrubbery can arouse more interest than a wooded plot. Is the future owner allowed to fell the trees on the plot and how many trees will he have to replant?
Sell building land to project developers or not?
Project developers are constantly looking for new land for their new construction projects. Selling a building plot as a private individual to project developers is therefore definitely worth considering. Of course, project developers want to purchase the land as cheaply as possible and sell the finished new-build units as expensively as possible. That’s their profit. Good negotiation is crucial when selling to project developers.
Do your homework first if you want to sell building land as a private individual! Collect sufficient information and inquire extensively about permits before you offer the building land for sale. Beware of free estimates offered by property developers! They are involved parties and generally estimate the value of building land lower than the actual market value, hoping to be able to purchase the land at a favorable price. Preferably use an experienced, external and independent professional who only defends your interests and assists you during negotiations with project developers.
Free building land estimate
At Verhelst Vastgoed we come to estimate your building land free of charge in the spacious regions around Antwerp and the Kempen. Afterward, you decide whether you sell the building plot yourself or call in our expertise and connections.