In this video, we look at whether buying a large plot of land to split into several parcels is actually a profitable move. With Market Explorer , you’ll learn how to cost out a land subdivision deal.
🔍 1. Why subdivide land?
The basic idea is simple:
- The larger a plot , the lower the price per m².
- By splitting a plot into several smaller parcels, you can resell them at a higher price per m².
Example:
You buy a 4,000 m² plot at €50/m² , for a total of €200,000.
You then split it into 4 lots of 1,000 m² which you sell at €125/m² , for a total of €500,000.
📊 2. How to analyse the deal with Market Explorer?
Step 1: Market research
In a previous video, we showed how to export land data for Namur from Market Explorer and build a chart illustrating the relationship between price per m² and surface area.
Result: the larger the surface area, the lower the price per m².
Step 2: Costing the deal
In a dedicated Excel sheet, you’ll track:
- ✅ The purchase price of the land
- 💸 The acquisition costs (notary, registration fees, etc.)
- 📉 Any financing costs
- 🛠️ Servicing and development costs
- 📈 A resale projection
📐 3. Example results
Let’s now run through a numerical example to concretely illustrate the profitability of a land subdivision.
You buy a 4,000 m² plot at a price of €50/m² , for a gross purchase price of €200,000. On top of that come various costs: acquisition costs (notary, registration duties), financing costs, servicing (utility connections, access, etc.), for an overall total of €380,000.
You then split this land into 4 lots of 1,000 m² , which you resell at an average price of €125/m². Total resale proceeds therefore amount to €500,000.
| Item | Amount |
|---|---|
| Total cost (purchase + fees) | €380,000 |
| Resale price (4 lots × €125/m²) | €500,000 |
| Estimated margin | €120,000 |
This calculation shows that a land subdivision deal can generate a comfortable margin , provided of course that you have a good grasp of the local market, realistic resale prices, and any hidden costs.
🧠 Conclusion
This tutorial showed you how to:
- Use Market Explorer to analyse the land market.
- Check the profitability of a land subdivision.
- Do a quick costing to make informed decisions.
👉 Feel free to reproduce this method with data from your own region to assess the potential of your land projects!