What is the value of the land for an existing property? Share

The value of an existing property is largely determined by the value of the land on which it is built.

Factors that influence the value of the land include:

1° Urban planning designation and regulations. Only the part of the land that is designated as residential in the urban planning regulations can be valued as building land. The rest of the land is typically valued as garden land, even if it is located in an agricultural area according to urban planning regulations. The construction shift means no more building land can be added. Parcels are getting smaller and large parcels are becoming increasingly rare.

2° The surrounding area. Some of the factors that play a role include:

• Proximity to a station or public transport and the distance to the motorway entrance.

• The presence of commercial centers, schools, sports facilities, etc.

• Proximity to green spaces and accessibility by bicycle.

3° The location. This is the most important factor.

Is the house located in a dilapidated neighborhood, or on the contrary, in a residential area, or is there any disruptive industry nearby?

The orientation of the plot. A plot with a garden facing south has more value than a plot that is mostly shaded.

4° Configuration.

Is the width of the plot sufficiently wide? What is the ratio between the width and the depth? Are the corners rectangular?

5° View and relief.

Is the garden landscaped? Is the plot higher or lower than the street? What is the drainage like?

6° Is the land free?

For larger areas, agricultural lease may need to be taken into account.

7° It is common to apply a 10% deduction for built-up plots, as this is the amount presumed necessary to make the land ready for construction. If the house is retained, this cost is not required.

An example for the above villa with 3660 m² of land located in Vlamertinge:

1° According to the RUP Brandhoek, the first 40 meters are in the "Residential Zone for Compact Core." The land behind it is agricultural land.

2° Bus connections are relatively close. The station is 7 km away, the motorway entrance is 11 km, or 11 minutes by car. The primary school is nearby, secondary schools and commercial centers are in Ypres and Poperinge; the hospital is 6 km away. Unobstructed view from the property with a beautifully landscaped military cemetery nearby. Good cycling connections to Ypres, Poperinge, and the nearby hill region.

3° Located in a neighborhood with new villas and semi-detached houses. South-orientated.

4° The plot is 30 meters wide, and the corners are rectangular. The maximum depth is 139 meters.

5° The garden is landscaped at the front and back. The majority is meadow. The house is noticeably higher than the street. The theoretical possibility of flooding has never occurred to the house. There is good drainage.

6° The land is free from lease.

Taking these factors into account, the value of the land can be determined as follows:

• 1200 m² (30 meters plot width x 40 meters depth) can be considered building land. Regarding the land valuation, considering all the above factors, the land can be valued as belonging to the upper quartile. A 10% deduction may need to be made for construction.
  1200 x 300 € x 90% = 330,000 €

• 2360 m² can be valued as garden land. It is customary to use 12.5 €/m² for this = 29,500 €

The total land value is: 330,000 € + 29,500 € = 359,500 €

The villa, finished in 1994, is currently listed for sale at 470,000 €. Magnificent country-house with large garden and meadow