Purchasing Building Land – What You Need to Know

Buying building land can be a complex process, requiring knowledge of legal regulations, ownership verification, and an understanding of urban planning conditions and communal infrastructure. This guide will provide you with all the key information needed for a safe and informed selection of building land.

It’s essential to be familiar with the applicable legal regulations in the city or county where the land is located. In some cities, as well as on islands, there are special restrictions regarding construction that must be considered.

Additionally, it is necessary to check all the property documentation, including ownership status and any encumbrances or liens. Ensuring that the land is classified as building land is crucial.

Verifying Ownership, Infrastructure, and Urban Planning Conditions of Building Land

You can check ownership in the land registry department of the local court or via online systems such as “Uređena Zemlja – Joint Information System of Land Registers and Cadastre.” Also, check the cadastral plan, which may reveal any encumbrances or liens that could complicate construction. This includes debts, mortgages, or legal proceedings.

Furthermore, it is necessary to verify the availability of communal infrastructure, such as electricity and water, to ensure easy connection to existing systems during construction.

Different urban zones define the purpose of a specific area, such as zones designated exclusively for residential construction, tourism, or industrial purposes.

All construction in Croatia is regulated according to the urban plans of local authorities, such as the General Urban Plan (GUP), which defines land use and the types of structures permitted.

The GUP clearly determines which zones are residential, tourist, or industrial, and what types of buildings can be constructed on a specific plot. For example, in a residential zone, only residential buildings are allowed, while in a tourist zone, hotels or other tourist facilities can be built. Industrial zones are intended for business and industrial facilities. Therefore, it’s important to carefully study the zoning conditions and the zone where the land is located to know what can be developed on the desired plot.

Types of Building Land

There are different types of building plots. The most attractive are those classified as M1, indicating mixed-use construction, for example, for residential buildings or houses. These plots usually have a high price due to the flexibility in land use, either for residential buildings or commercial structures.

• M2 land is designated for the construction of commercial buildings.
• D1 zone is intended for public or social facilities, such as schools, administration buildings, social services, religious buildings, cultural institutions, or educational centers.
• I1 denotes land for industrial purposes, such as craft and industrial facilities.
• K1 zone refers to a commercial zone designated for service, trade, and utility service businesses. It is optimal because it allows a wide range of commercial buildings and services.
• S1 land in the S1 zone, reserved exclusively for residential houses, is ideal for families or private investors seeking a quiet location.

Legal Aspects of Purchasing Land

Each zone in which the land is located has its specific purpose.

Every city has a General Urban Plan (GUP), which defines in advance what can be built and to what extent on a given area. Before purchasing land, it is crucial to study the GUP to know exactly what and how much you can build on the desired plot and avoid legal complications later.

The GUP can be obtained at the local municipality or online through official city or ministry websites.

When considering purchasing land, it is important to verify its dimensions – width and length – and, with the help of an on-site architect, determine the allowable construction area. The architect will help establish what can be built based on legal restrictions.

It’s extremely important to adhere to the prescribed dimensions, as any deviation from the legal frameworks can result in sanctions.

How to Find Suitable Building Land

Finding the right land requires precise and verified information. When searching for building land, various online portals can help, such as njuškalo.hr and Index Oglasi, which are well-known in Croatia. In addition to searching portals, consulting real estate agencies can be highly beneficial. Agents often have access to properties that are not publicly advertised, and they can significantly simplify the purchasing process.

Buying land is one of the most complicated processes in real estate transactions, as it requires precise and verified information. Therefore, it is crucial to be thorough and careful to find suitable land with proper documentation and legally clear ownership. Agencies can help you navigate this complex process.

Land Valuation

The value of land depends on many factors that can affect its price, either increasing or decreasing it. For example, an important factor is the location of the land, as well as its shape, the availability of necessary communal infrastructure (such as water and electricity), and access roads.

You can verify the availability of communal infrastructure with local utility companies. If there are no connections, it’s essential to determine the conditions and costs of installation, as this can significantly affect the total construction cost.

If the land does not have an access road, this significantly lowers its sale price. Additionally, the value of the plot is influenced by the construction potential and the zone in which it is located.

To accurately assess the value of the land, consider hiring a certified appraiser who will take into account factors such as location, infrastructure, land shape, and market conditions. A geodetic survey may also be key in defining the exact boundaries of the plot, which can prevent future legal disputes.

Financing the Purchase of Building Land

Land purchases are generally made without loans, meaning they are paid for in cash. However, it is possible to take out a mortgage on an existing property and use that money to purchase land.

You can also apply for a loan from a bank for the purchase of land, in which case the bank will register itself as a mortgage creditor after the purchase.

Conclusion

Buying different types of building land in Croatia has been very popular and highly profitable for several years, especially for long-term investors constructing residential buildings. Such properties have been in short supply in Croatia for a long time, creating high demand and interest.

Apartments are often sold during the construction phase because they represent a good investment for long-term or short-term rental, especially during the tourist season. This type of investment is most popular in coastal areas of Croatia, particularly in Split, Makarska, and Dubrovnik. Buying building land by the sea for the construction of villas intended for tourist rental has also become very attractive.

The entire country is ambitiously expanding and developing residential units, both for living and tourist rental purposes. This sector brings significant financial inflows through investments and increases employment opportunities for construction workers, engineers, architects, and interior designers.

As a result, the standard of living is rising, and cities are rapidly developing, becoming more attractive to new visitors, settlers, and foreign investors.

Therefore, you can contact us with full confidence. We will gladly assist you throughout the entire process and present all the interesting properties we have on offer.