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What is Land Banking?
Land Banking is the strategic acquisition of land in advance of expanding urban development. It's practice is in the buying and holding of undevelopment land in the path of growth. It is the process of purchasing land and holding it for future use.
However undevelopment land or raw agricultural land as they are defined cannot increase much in value without the process of adding value to it. This exercise in creating value to a piece of land is called Land Value Creation. Land Value Creation is done through a Concept Planning phase. From this process, and upon submission for approval will the land be considered investment-grade quality land.
Land Banking is a Proven Concept
The acquisition of raw agricultural, green belt and undevelopment investment-grade land is nothing new - large developers and the super-rich have been doing it for decades. They "stockpile" land into their own land banks under URL for future development use.
Clearly, it is preferable and far more profitable to buy land prior to planning applications being submitted. Having gained planning permission the land may then increase in value from 100% to 300%. Land Banking is not a complicated concept that investors need to understand. It is very simple and straight forward. It is time tested, time proven and time honoured.
Land Banking is the strategic acquisition of land in advance of expanding urban development. It's practice is in the buying and holding of undevelopment land in the path of growth. It is the process of purchasing land and holding it for future use.
However undevelopment land or raw agricultural land as they are defined cannot increase much in value without the process of adding value to it. This exercise in creating value to a piece of land is called Land Value Creation. Land Value Creation is done through a Concept Planning phase. From this process, and upon submission for approval will the land be considered investment-grade quality land.
Land Banking is a Proven Concept
The acquisition of raw agricultural, green belt and undevelopment investment-grade land is nothing new - large developers and the super-rich have been doing it for decades. They "stockpile" land into their own land banks under URL for future development use.
Clearly, it is preferable and far more profitable to buy land prior to planning applications being submitted. Having gained planning permission the land may then increase in value from 100% to 300%. Land Banking is not a complicated concept that investors need to understand. It is very simple and straight forward. It is time tested, time proven and time honoured.