When you’re ready to invest in property or real estate, you’ll face plenty of choices. One option that stands out is investing in land. It’s become quite popular lately, and for good reason. But before diving in, it’s important to grasp the differences between various types of land and get advice on making smart, long-lasting investments.
Understanding the Difference Between Land and Plots
Land can be grouped into four main categories: undeveloped, zoned, public, and commercial. Each type has its pros and cons. But what exactly is the difference between ‘land’ and a ‘plot’?
According to Property Tax Law, every plot of land is considered land. However, not all pieces of land qualify as plots.
Investing in land is often one of the first choices for real estate investors because it holds potential that depends on your goals and plans. But accurately assessing this potential is crucial for success. Despite its potential for profit, not all land investments meet expectations. The location, type, and size of the land are the key factors influencing its potential. To officially be called a plot, the land must go through the process of parceling.
What Makes a Piece of Land a Plot?
A plot of land is simply a portion of property located within city or town boundaries. These areas are divided by local governments and are ready for development and living. Especially nowadays, a piece of land that meets certain criteria can be a great investment.
The value of land can quickly rise due to various factors, making plots one of the top investment options. Plots that aren’t limited by specific development plans can be found in villages, towns, or cities.
Varieties of Land and Their Characteristics
Investing in land is quite different from investing in houses. While buying a house usually involves easy-to-find information, diving into land investments requires more thorough research. This difference applies to each type of land…
Each of the four land types has its own specific buying and selling procedures:
Zoned Land
Zoned lands are set aside for building purposes, but agricultural activities are exempt according to Real Estate Tax Law.
On zoned lands, you can build public buildings like schools or hospitals, as well as private structures, without many restrictions.
The value of zoned plots depends on factors like proximity to gardens, available space on the sides, total area in square meters, maximum allowable floors, and the condition of the land.
These lands are part of development plans, and you can check their zoning status directly with district or city authorities. Zoning plans show how the land can be used and its layout, which helps ensure that building requirements are met.
Unzoned Land
Unzoned lands, often called fields or open space, aren’t suitable for building structures.
However, through a series of procedures with the Zoning Directorate, unzoned lands can potentially become buildable.
Unzoned lands usually cost less than zoned ones, and their value depends a lot on whether they can be zoned for development.
Public Land
Public lands belong to everyone and are used for community purposes like parks, playgrounds, and green spaces.
They can also be used for big projects like hospitals or schools. Sometimes, public lands are called “road abandonment” or “public allocation,” so it’s crucial to check if any processes are ongoing before buying them.
Commercial projects aren’t allowed on public lands; they’re meant for the benefit of society, not profit.
Commercial Land
Commercial lands are meant for building places with economic or business purposes. This includes things like entertainment centers, big malls, cafes, stadiums, and more. They bring in money and also add to the community’s social and cultural life.
Different kinds of businesses can use commercial lands at the same time. But if someone wants to build houses on commercial land, they have to get permission from the city and change the property papers or permits first. Trying to build houses without doing these things means paying higher commercial rates, which can cost a lot.
At GRAND EMLAK, we provide comprehensive consulting services tailored to your real estate ventures. Whether you’re interested in leasing, selling, or purchasing property, we’re at your service to address all your inquiries and guide you towards the most lucrative opportunities.
