Land Banking
Land Banking is the term for using development plots as investment vehicles. The property may not exist yet, but the land on which it could be built is an investment that can be defined by the future value of the property. We were involved in the land banking of the residential community in Lusail, a project with 10 villas planned. These 684 sq m villas were designed already but lacked the financing to develop, leaving the land empty but with potential value locked in.
The Benefits
The plots at Lusail were offered for cash purchase, offering buyers a chance to develop units at a small scale if they wished. Plots were sold with a holding period of 7 years, with all returns coming once the villa on the purchased plot had been developed.
Facts and Figures
- Unit type: Land Banking for a residential community In Lusail Area
- Size: 4,421 sq m plots
- Total plot/build cost: QAR 16,655,450
- Land cost: QAR 6,662,180
- Construction cost: QAR 9,993,270