In the competitive world of property development, finding and evaluating off market land can be the difference between a successful project and a missed opportunity. With land in prime locations increasingly scarce, property developers are turning to creative strategies for sourcing off market sites—an approach that not only broadens the pool of opportunities but also often leads to reduced competition and better deals.
But how can you effectively assess off market land to ensure it meets your development goals? In this article, we delve into the importance of assessing off market land, provide actionable tips for sourcing off market sites, and explain how tools like Viability can streamline the process.
What Is Off Market Land?
Off market land refers to land that is not actively listed for sale through public channels such as estate agents or online property portals. Instead, it may be privately owned and not widely advertised, requiring proactive approaches to identify and secure. Sourcing off market sites requires a combination of market knowledge, local connections, and strategic research.
Why Focus on Off Market Land?
1. Avoid Unnecessary Bidding Wars
Land listed on the open market often attracts significant interest from developers, resulting in fierce competition and driving up prices. Off market land allows you to sidestep these bidding wars, ensuring you don’t overpay for a site or face inflated costs due to competing offers. By negotiating directly with landowners, you maintain control over pricing and terms, which can be crucial to maintaining profitability.
2. Reduced Competition
In addition to avoiding bidding wars, sourcing off market sites means you’re not competing with a wide pool of developers. This often results in more favorable negotiations and less pressure to act hastily.
3. Greater Flexibility
Off market deals are typically more flexible. Landowners may be open to creative agreements, such as joint ventures or phased payments, which can make projects more financially viable.
4. Unique Opportunities
Off market sites often include overlooked or underutilised plots that others might miss. These opportunities can offer strong potential for development with the right approach.
How to Source Off Market Sites
Sourcing off market sites requires a mix of research, networking, and innovative tools. Here are some proven strategies:
1. Build Relationships with Landowners
Establishing relationships with local landowners is one of the most effective ways to access off market land. Attend community events, network with professionals in related fields, and use direct mail campaigns to introduce your interest in acquiring land.
2. Use Mapping Technology
Advanced mapping tools, like those integrated into Viability, allow you to identify land parcels that meet specific criteria. By analysing title boundaries and ownership data, developers can pinpoint potential off market opportunities and approach landowners directly.
3. Partner with Local Agents
Even if a plot isn’t formally listed, local agents often have inside knowledge about landowners who might be open to selling. Working with agents can help uncover hidden opportunities.
4. Leverage Data Insights
Public records, such as planning applications or land registry data, can reveal information about land that might not be on the market but has development potential. Platforms like Viability consolidate this data, making it easier to identify and assess off market land.
Key Considerations When Assessing Off Market Land
Once you’ve identified a potential site, thorough assessment is crucial to avoid costly mistakes. Here are the steps to take:
1. Evaluate Location and Accessibility
Location is the cornerstone of any successful development. Assess proximity to amenities, transportation links, and demand in the local housing market. Off market sites are often underutilised plots in prime areas—a hidden goldmine if evaluated correctly.
2. Check Planning Potential
Investigate the local planning policies to ensure the land aligns with your intended development. Tools like Viability provide insights into zoning regulations, housing targets, and affordable housing thresholds, helping you understand the site’s potential.
3. Conduct a Site Viability Assessment
Assessing off market land isn’t just about location; it’s about feasibility. Use tools to calculate existing use values, build costs, identify constraints (e.g., flood risks or heritage restrictions), and estimate the return on investment.
4. Consider Infrastructure and Utilities
Access to infrastructure like water, electricity, and sewage can significantly impact development costs. Ensure these are factored into your viability assessment.
5. Engage Professionals
Surveyors, architects, and planning consultants can provide valuable insights that reduce risks. Engaging professionals early ensures no critical issues are overlooked.
How Viability Simplifies the Process
At Viability, we understand that sourcing and assessing off market sites can be a time-consuming and complex process. That’s why our platform is designed to streamline the entire journey:
- Automated Viability Studies: Quickly assess build costs, planning potential, and site profitability in minutes.
- Mapping Tools: Identify and combine title boundaries to evaluate larger plots.
- Data Insights: Access local planning requirements, affordable housing thresholds, and more.
- Scenario Analysis: Explore different development scenarios to mitigate risks and maximise returns.
Our innovative PropTech solutions empower developers to make informed decisions when assessing off market land, ensuring you’re always a step ahead of the competition.
Conclusion
Assessing off market land is a critical skill for property developers looking to secure high-potential opportunities in a competitive market. By focusing on sourcing off market sites, leveraging advanced tools like Viability, and thoroughly evaluating each opportunity, you can unlock unique development projects that deliver strong returns. Avoid the pitfalls of unnecessary bidding wars, maintain control over your investments, and discover overlooked opportunities that others might miss.
Ready to transform your approach to land sourcing and assessment? Explore Viability today and see how we can help you uncover hidden opportunities and make confident, data-driven decisions.
Visit our features page to learn more!