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Talk to any developer and they will tell you that it’s important to get the most for your money. The cheaper you can buy land for, the more money you potentially stand to make. While this isn’t true of every single venture, it is something that you should be concerned with.
So if you’re looking to get the most for your money, where should you be looking in the UK? Here are some prime locations for development based on land value:
Property in London is notoriously expensive, but if you do manage to find a plot of land for development then you can expect to make a small fortune from it. However, this is only if you manage to get a good deal on the loan – always worth using a development finance broker – and the planning and building goes through without delay or unexpected costs.
How much can you expect to be paying for land here? This will strongly depend on how desirable the location is whether the area is already build up and what the local infrastructure is like. With London it can be hard to predict just how much land will go for, although the likely hood is that you’ll be looking at £600,000+ per 1,000 Sq. ft. Absolute prime locations will happily top the scales at £1million per 1,000 Sq. ft. making this a very costly place to invest in.
A very popular location thanks to having great transportation links with London, making it great for commuting or doing business within the capital. Land here is slightly cheaper than in London, but don’t expect to see a huge amount of difference. The market start at around £400,000 per 1,000 Sq. ft. and can go up to the millions in the right areas.
A well-known business hub along the M4 corridor, Reading is a prime location for developers. Unlike London and Brighton, the price of land here is much more reasonable with 1,000 Sq. ft. in an industrial area costing around £30,000. In locations that are ideal for residential development, the price goes up to £75,000 – £400,000 per 1,000 SQ. ft.
Being further away fromLondon means that the price of land is much cheaper in Manchester. You can expect a 1,000 Sq. ft. to cost around the £70,000 mark with the price varying depending on the location and desirability of the surrounding land. This is one of the best places in England to invest due to the low cost of land compared to the value of development properties in this area. If you’re looking to develop a block of flats of create a housing estate then Manchester could provide one of the lowest cost projects that you can take on.
Unsurprisingly, Cardiff has some of the cheapest land for development to be found in a desirable location. You are likely to find 1,000 Sq. ft. of land here for around £50,000 with even land within close proximity of the city centre costing less than £200,000 per 1,000 sq ft! There are currently lots of developers putting in bids around Cardiff bay and the surrounding boroughs, as the return on investment here is predicted to be huge.
Are you thinking about launching a development project? Pure Commercial Finance is a team ofspecialist development finance brokers who are able to get you the perfect deal for your needs. Talk to us today to find out more!