Land exploitation in area development

Before a spatial development plan can be implemented, there must be clarity about the costs and benefits thereof. This is usually done by means of land development: a specified budget of the land costs and revenues that are linked to area development such as housing, utility construction and other changes to the zoning plan.

The land exploitation provides clients and contractors with a framework for negotiations on the purchase, sale and exploitation of the land and is usually drawn up on behalf of the municipality or province. It shows the financial implications of the proposed area development project and determines to a large extent the agreements that can be made between the parties involved.

How does a land exploitation work?

Every land exploitation is a unique analysis of costs and revenues, linked to a specific development plan. On the cost side of the land exploitation all costs associated with the development of the land will be shown, from the purchase and preparation of the land to the design of the area, the overhead and other costs related to the preparation, supervision and implement the plan. On the other hand, there is the income from subsidies, local contributions and the sale of land that has been prepared for building. The land exploitation generally has three different forms: active land exploitation, passive land exploitation and public-private cooperation.

In the case of active land exploitation, the municipality owns the building land. The part of the land to be cultivated is first made ready for construction in this form and then sold to the builder. In this context, the land exploitation serves primarily to be able to control the costs and revenues of the process.

Passive land exploitation assumes that the municipality is not the owner of the land in question, but does incur costs in its exploitation. This may concern costs associated with changing the zoning plan, constructing public facilities such as roads or sewers, or other local activities. In such cases, area development is accompanied by an exploitation plan or agreement; the land exploitation forms the basis for this.

Within a public-private partnership, the local government and the developer each take part in the responsibilities within the construction project. In these cases, a land development is jointly drawn up, so that all parties involved have an overview of the costs.


Do you want to know more about one of these three forms of land development?

IGG can provide substantiated insight into the objectives of land development. Involvement and transparency come first; our specialists are always closely involved with your objectives and wishes.

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Arno Vonk MRICS

Directeur / Senior bouw economisch adviseur

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Senior bouw economisch adviseur / Projectcoach

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Mario van Veen

Bouw economisch adviseur / Projectleider

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Yuk Ling Chung

Bouw economisch adviseur

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Marc Hengstmangers

Directeur / Senior bouw economisch adviseur

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Hans Smit RKN

Register kostenmanager (RKN) / Projectcoach

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