It is a fact that investments in land have returned, on average, over 900% for investors during a 20 year period in several global spots. But let’s examine what factors should be considered before buying land as an investment.
Firstly, the land location is very important in order to be chosen those plots of land that are likely to explode in value quickly. More analytically, the likelihood for planning permissions as well as the chances of being bid by another developer must be determined seriously.
In addition, land should be close to road networks, has access to gas, water, electricity and other utilities. Particular attention is also required for plots of land located in government protected or green belt areas because several problems may arise to obtain a planning permission for development.
Physical characteristics should also be taken into account such as the type of soil, the surrounding views and whether it is a flat land or up to hills, because all these factors may define the usage of the plot.
Another significant factor is the distance from existing developments as such a plot of land is easier to get noticed by developers. Moreover, it is possible to be aware of the most recent sales and determine the average prices. This could offer a fair indication of how well land in this region may perform as an investment.
It is worth remembering that is very likely to increase the land price once planning permission is granted. Thus, when you decide to invest in land either individually or as part of a group, a planning permission is a key.
In Greece, exceptional plot of land are offered mainly at coastal regions which can be used for a hotel or a country villa development. As an illustration, Mykonos, Santorini, Paros, Naxos and Corfu are some of the islands offering such opportunities. You‘d better not forget that a plot of land purchase on a mountainous area, as Parnassos, could lead to a chalet development attracting many visitors during the winter months.