How much can you pay for the land?
The residual method starts from the end: how much the project will bring in, minus all costs and the profit you require. What remains is the maximum price the project can bear for the land. Enter the assumptions and get a breakdown, a sensitivity table and a printable summary.
Leibovitch & Co. · Land value for developers
The maximum land price under the assumptions
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- Expected revenue (GDV)
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- Land as a share of revenue
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- per built sq m
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- per saleable sq m
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Calculation breakdown
Sensitivity: maximum land price
Rows: sale price per sq m. Columns: construction cost per sq m. The highlighted cell is the assumptions you entered.
Assumptions
The information is general and is not legal or tax advice, and is no substitute for reviewing a specific deal. Calculation for illustration only, based on the assumptions entered. Not an appraisal and not a valuation.
The information is general and is not legal or tax advice, and is no substitute for reviewing a specific deal. The residual method calculation is a general estimate for illustration only, based on the assumptions you entered. It is not an appraisal, not a valuation, and does not check whether what you entered may be built on the plot. Building rights are checked in the planning certificate and the plans.
Disclosure: Adv. Ilan Leibovitch is also a real-estate developer and a partner in Compass Group, the developer of Compass on the Lake in Romania. The office does not represent buyers or investors in transactions with Compass Group or its projects, and refers them to independent counsel.
Found land and want to check it before making an offer?
In an introductory call we will go over the land register extract, the planning certificate and the deal structure, so that your offer rests on what can actually be built.
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- 7 Hanafat HaDegel St., Ness Ziona, Israel
- Romania
- Meetings in Bucharest by prior arrangement
