5 Key Steps in Selling Building Land

The sale of building land is thriving in Croatia’s fast-developing regions, particularly Dalmatia and Istria. While buying plots for vacation villas are popular, the greatest demand is for residential land, driven by a market shortage of apartments.

Split and Zagreb dominate this demand due to a significant need for new apartments to meet housing needs.

Split faces challenges as new construction focuses on small one-bedroom apartments for tourists, leaving young families struggling to find larger units (70 m² or more). Such apartments are mostly limited to older buildings from the previous state era.

Split has practically merged with neighboring towns like Solin and Podstrana, leading to an almost complete disappearance of free plots for constructing residential buildings. The remaining plots have become extremely valuable due to their scarcity, further driving up apartment prices per square meter, as demand remains high while supply is limited.

Due to this pressure, residential construction has started expanding toward Klis, where construction is now underway, as there is no more room for expansion in Split and its immediate surroundings. As a result, one of the few remaining ways to build new residential properties in Split is to purchase an old house, demolish it, and build a new structure on that location.

Preparing Land for Sale

Thorough preparation is crucial when selling building land, including securing all necessary documents. Ensure the plot has infrastructure like water and electricity, as these sell faster. Verify that the plot has legal access, as this is essential for obtaining building permits.

Similarly, it is necessary to research the minimum construction conditions, especially the plot size. In some cities, there are restrictions stipulating that a building plot must be at least 1000 m² to legally construct a building on it.

Urban Plan and Land Use Regulations

Each city’s urban plan defines the purpose of individual plots, specifying what can be built in each zone. This ensures orderly urbanization, designating areas for hotels, warehouses, or other commercial properties.

Every building plot has a location information document that details the maximum constructability of the plot, specifying the size and maximum height of the structure that can be built. All construction projects must comply with legal requirements and dimensions prescribed by the building permit to ensure the city’s coordinated and sustainable development.

Legal Documentation and Due Diligence

Ensure clear ownership and absence of encumbrances. If there are multiple co-owners, all must agree to the sale. Request location information and check local urban plans to confirm construction conditions and land zoning.

Factors Affecting Land Price

The price per square meter of building land is determined by the current market value in the specific area. The location of the land has the greatest influence on its price, along with the availability of existing infrastructure such as water, electricity, and sewage, and the maximum buildable area, i.e., the size of the structure that can be built. The existence of a legal access road is also an important factor.

The most valuable building plots are those intended for constructing residential buildings, as such properties are in high demand. Additionally, plots in the first row to the sea, especially those with panoramic sea views, have special value, making them extremely attractive to buyers.

What Do You Want to Build (House, Villa, or Apartment Building, Purpose of Purchase)

It is important to clearly define your goal when purchasing building land. If you plan to build a house to live in, choosing a location that best suits you is essential, considering both the nature of the environment and the quality of life it provides. Many cities today are overcrowded and saturated with buildings, making them less attractive for building family houses. Noise and lack of space can severely disrupt the sense of comfortable living in one’s home.

For constructing residential buildings, it is crucial to carefully select locations that are attractive for living and appealing to potential apartment buyers. Of course, the price per square meter of building land varies significantly depending on location. In the city center and the inner center, prices are highest, while land on the outskirts and in suburbs is more affordable yet still in demand, as finding available plots in cities is increasingly difficult. This limited supply makes the city’s peripheral areas more attractive to investors.

Collaboration with a Real Estate Agency

As a real estate agency, we significantly simplify the entire sales process by handling everything from advertising the property to registration. We strive to conduct the process as professionally as possible to make the sale as simple as possible for both the property owner and the potential buyer. Maintaining good relationships with all clients, especially property owners who have entrusted us with their properties, is a very important aspect for us.

Negotiating and Closing the Sale

During negotiations, aim to satisfy both parties and reach a fair price, typically achieved when the buyer offers close to the asking amount.

Negotiations can last long or end quickly, depending on the seller’s circumstances. If the seller, for example, urgently needs to sell the apartment, they are more likely to accept the first acceptable offer faster. There is an additional advantage if the buyer pays in cash, as they can immediately pay the requested amount. However, with purchases through a loan, the process is somewhat longer because a deposit must first be paid, and then bank approval is awaited before the full amount is paid to the seller.

Conclusion

The process can be complex, but as your real estate agency, we guide you through each step. With our expertise, every detail will be handled professionally from start to finish.