Each plot has particular characteristics that lead the experts to work on a case by case basis. Whether it is bare or built land, the price is in fact a residual value calculated according to the land developer's balance sheet: the resale price of the constructed building is subtracted from the total costs of the real estate project (including demolition costs in the case of built land). Depending on the capital gain anticipated and actually realised at the end of the project, investing in land can have significant leverage effects. This is why many investors use land as assets of diversification, hoping for rapid capital gains on resale.

Property taxes are characterised by a certain uncertainty which depends on the possible operation on the land and its actual costs once carried out. The level of risk is therefore higher and the land will interest investors seeking short- to medium-term added value by wanting to develop value creation within their assets. This will involve either identifying bare land with good potential or acquiring built land.

In the case of built land, investors seek to determine whether a transaction is possible and attractive. It will then be a question of developing a project by modifying the use of the land, for example by passing from a warehouse in an urban environment to a residential complex in R+6. The objective is to characterise the added value after demolition and reconstruction. This added value represents the land’s price.

But land is also an interesting asset in the context of asset strategies that will lead either to leasing or to the use of the asset. Users can also search for adjoining plots to expand their business.