Excerpt from an article by Jean Sasseville for Les Affaires: https://www.lesaffaires.com/mes-finances/immobilier/comment-doubler-la-valeur-de-son-terrain/
GUEST EXPERT. A property's value depends as much on its development potential as on its location. To better understand the concept of land value enhancement, I spoke with Landerz Group.
At Landerz, land is defined as a property, whether built or vacant, that may be occupied by tenants or delivered vacant. The value of a property suitable for land value enhancement is determined by its redevelopment potential rather than its operating income.
“Even a fully developed property can be considered a site for land value enhancement if it offers redevelopment or repositioning opportunities, as is often the case with the properties we analyze at Landerz,” explains Alexandre Watson, architect and Head of Land Entitlement.
Land Entitlement can benefit property owners looking to maximize the value of an asset, as well as investors and developers seeking to structure an ambitious development project.
“We often find ourselves bridging the gap between these two parties. Zoning conditions included in an offer to purchase can drag on and become difficult to manage for both the buyer and the seller,” explains Alexandre Watson.
A well-structured land value enhancement project can address these issues and help make the transaction faster and more seamless. The use of advanced technology also accelerates project analysis.
Land value enhancement involves establishing a clear vision, anticipating potential obstacles and adapting the regulatory framework to maximize a property's development potential. A well-positioned project can transform both its value and its future.
“A request for a regulatory amendment is an inherently uncertain process. In most cases, the municipality has no obligation to support it. It must balance the interests of all stakeholders within a shared vision for the future, as established through its urban plan. By building on these shared interests, we can develop a vision that increases a site's market value while also creating value for the broader community,” explains Alexandre Watson.