Although it is quite easy to value and apartment or a house, when it is coming to valuation of the plot we should take into account additional factors.
The value of the land for sale is proportional to the local property market. Hence price for the land in one Limassol is different than in other towns.
Plots of land for sale in close proximity to roads and motorway are valued at a far higher price than the equivalent land that is accessible only by the countryside roads.
The price of plots is usually varies on whether building permission is granted or not. Private individuals can make great profits by purchasing a piece of land that does not yet have the necessary planning permission, but which will gain it shortly due to its location and its proximity to new and existing housing developments.
Purchasing land for sale, you should keep in mind that it might be impossible to gaining consent in the deepest countryside with no roads, electricity and etc.
In the same way plots of land that is close to existing residential areas with an access to the roads will have more chances to gain permission.
Plot Valuation Factors
The factors mentioned above affect the value of land in the local area. The value of a particular plot is determined by different factors:
- What type of property can be built on the land? How big it may be?
- What are the costs to build a house? Is it in remote area? Is it connected to electricity? Does this house require expensive foundation?
- What is the value of finished house?
Buying a plot, many people start thinking whether it is expensive or they should look somewhere else. Keep in mind that most of the developers will ask the amount of 30 % of the total value on ready property that might be build on that particular plot.
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