If you are evaluating how to sell an urban plot of land, in this post we explain everything you need to consider when managing the sale. Selling a property, and more so if it is a lot, is often a more complex business than it seems. The first thing we need to know is what type of plot we’re dealing with. It might be a certified urban plot, in which case it would be possible to apply for a building permit straight away. Conversely, it might be classified as land not eligible for building permits. The third possibility is that it has been certified as land eligible for building works but still has to go through the planning stage or still requires the execution of infrastructures. Once we’re sure that we are in fact dealing with a certified urban plot, its value will depend on what kind of structure can be built on it. We will have to check the local planning regulations in order to see the permitted uses, land-to-building ratio, gross floor area, density, regulatory heights and construction specifications.

 

This groundwork is essential in order to find out what sort of land we’re dealing with and how much it’s worth, so it’s extremely important to put it in the safe hands of thorough, specialised real estate professionals with proven expertise in handling the sale of plots, which is where Gènion Immobles comes in.

 

What is an urban plot?

An urban plot can be defined as fully-established urban land which therefore meets the minimum infrastructure requirements listed in the corresponding town planning documents and urban planning legislation, and for which the alignments and grades have accordingly been stipulated. It must be located in an area with paved streets, completed kerbs, street lighting, a drinking water supply and an electricity supply. And it must be connected to the sewer network. As we’ve said above, once the construction project has been completed, the plot must be eligible for planning permission and immediate building works.

 

Types of urban plots

As regards uses, the main categories are residential, industrial, hotel, social-healthcare, services, facilities and other minor types or sub-types. Residential uses include single-family dwellings (detached, semi-detached or terraced houses) and multi-family buildings (blocks of flats). Industrial uses encompass detached, semi-detached or terraced buildings, which are usually horizontally divided. Hotel land is designated for the construction of hotels, apartment hotels or similar. Meanwhile, social-healthcare land is for the construction of healthcare and residential care facilities: hospitals, medical centres, care homes, etc.

 

Handling the sale of plots

The commercial potential of a plot varies according to its type; each type of plot has its own type of buyer. Accordingly, when it comes to selling plots for the construction of one or two houses, private individuals and developers should be targeted. Meanwhile, in the case of developing a residential complex or apartment building, we would turn to developers and investors. Industrial companies or developers should be targeted for the sale of single industrial plots, while specialised developers of industrial buildings would be more appropriate buyers in the case of industrial building complexes. As regards hotel land, we would target either hotel chains or hotel developers who then entrust the running of hotels to companies that operate under a certain brand name. Lastly, when it comes to social-healthcare land, customers in the private sector tend to be specialised investment funds, private hospital businesses or experts in geriatric care management.

 

At Gènion Immobles we know that in the real estate sector it’s extremely important to sell excitement and great expectations. However, it’s just as important to sell security. When we sell urban plots, the security aspect is even more paramount than in other sales, since we’re selling a plot of land whose value is dependent upon a future construction project. In order for potential customers to envisage this prospect, it will often be necessary to incorporate a project idea, preliminary budget, initial building sketch, etc. in the sale process. When dealing with developers and investors, it’s advisable to have made a preliminary calculation of the construction and commercialisation costs, along with potential sale prices, making the profitability of the project clear. During the purchase process, it will be necessary to walk potential buyers through the preliminary procedures, and, on many occasions, to clear up issues related to urban planning, legal and tax matters, as well as to assist them in obtaining financing, etc. It goes without saying that when the buyer of an urban plot is a developer or investor, at Gènion Immobles we can also take care of the commercialisation of whatever structure is built on the plot, be it houses, apartments or industrial buildings, etc., offering all the expertise and the full dedication of an extremely professional team, using the most modern and efficient resources.