Whether you're a family office, an institutional investor, a real estate company, a private owner or an investment fund, our expertise can guide and support you in the sale or acquisition of office space, whether in the Greater Paris area, in France or in border areas.
The value of a plot of land is intrinsically linked to a residual estimate corresponding to the anticipated sale price of a building to be constructed, deducted from all costs incurred. Our team is here to support you in your real estate project.
Land...!
Land represents assets with high multiplication potential, and its valuation requires an individualized approach. Its value is intrinsically linked to a residual estimate: this corresponds to the anticipated sale price of the building to be constructed, deducted from all the costs generated by the real estate project.
This valuation requires an in-depth analysis, based on solid prior experience and a precise understanding of the costs associated with real estate development. Due to its complexity of valuation and the associated level of risk, land attracts the attention of investors looking for a capital gain in the short or medium term. However, it is also of interest to those who favor a wealth strategy, such as renting out or using the asset for various purposes.
What attributes characterize the "Land" asset ?
Land assets have an intrinsic particularity: their market value is closely linked to various factors other than fluctuations in local real estate markets. Indeed, the value of a plot of land stems from the potential project that can be developed on it, whether it is undeveloped or already equipped with existing buildings intended to be rebuilt or renovated significantly.
Land assets are also influenced by public policies, in particular by changes in municipal planning regulations and constantly evolving environmental standards. Despite these constraints, in urban areas subject to strong land pressure, land remains resilient and can offer interesting opportunities to owners. Indeed, its potential value and leverage can be significant, making land a strategic asset in a context where demand for housing and infrastructure remains strong.
What are investors' expectations ?
Investors’ positioning varies according to their status. User investors, who will build for their own needs, consider land as an essential element of their medium and long-term growth. Their approach is therefore guided by a wealth strategy aimed at establishing themselves sustainably in a specific geographical area, whether by necessity to meet growing demand or by opportunity to expand their existing activities.
Developer investors or promoters, who plan to build to resell to third parties, also consider land as a short-term opportunity. Their priority is to achieve anticipated profit margins or immediate profitability when selling the built real estate. For these investors, the maximum amount they can devote to the purchase of land is determined by these considerations as well as by a strategy aimed at minimizing the risks associated with the transaction.
What are the main criteria for evaluating “Terrains” ?
The assessment of the value of a piece of land is largely based on its geographical location and the regulations that apply to it, such as the Local Urban Planning Plan (PLU). These elements determine the authorized use of the land as well as the type of buildings that can be built, which directly influences the sale price per square meter once the real estate project is completed.
Thus, the land value is closely linked to the expected sale price of future built properties.
• Location: City center, easy access by personal vehicle or public transport.
• Urban planning constraints: PLU, flood or seismic zones, technological risks, regulated activities, polluted land, etc.
• Use: Potential for building a warehouse, residences, or large commercial structures, etc.
• Surface area and configuration: Surface area, accessibility, width/length ratio, topography, slope, soil characteristics. In general, the valuation of a plot of land is largely based on a developer analysis, where the sale price of the built project is determined and then all costs associated with its completion are subtracted, including any demolition and decontamination costs of the existing site.
The calculation of the land price is the result of this valuation. Other less frequent approaches can also be considered: the comparative method, for example, is applicable to subdivisions where the characteristics of the plots are often very similar. This method can also be used for projects in activity zones or logistics warehouses, in addition to the capitalization method.
The assessment of the value of a piece of land is largely based on its geographical location and the regulations that apply to it, such as the Local Urban Planning Plan (PLU). These elements determine the authorized use of the land as well as the type of buildings that can be built, which directly influences the sale price per square meter once the real estate project is completed.
Thus, the land value is closely linked to the expected sale price of future built properties.
• Location: City center, easy access by personal vehicle or public transport.
• Urban planning constraints: PLU, flood or seismic zones, technological risks, regulated activities, polluted land, etc.
• Use: Potential for building a warehouse, residences, or large commercial structures, etc.
• Surface area and configuration: Surface area, accessibility, width/length ratio, topography, slope, soil characteristics. In general, the valuation of a plot of land is largely based on a developer analysis, where the sale price of the built project is determined and then all costs associated with its completion are subtracted, including any demolition and decontamination costs of the existing site.
The calculation of the land price is the result of this valuation. Other less frequent approaches can also be considered: the comparative method, for example, is applicable to subdivisions where the characteristics of the plots are often very similar. This method can also be used for projects in activity zones or logistics warehouses, in addition to the capitalization method.
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- See also !
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