The cost of building land: analyzing prices per square meter

Buying Land: A Comprehensive Guide

Buying a house in today’s market is a rather complicated process.
The real estate market trends have significantly changed buyers’ purchasing behaviors, leading them to wonder how much a building plot costs.

In the current market, the sale of land represents a significant portion of the sector, with its intended use being either agricultural or, precisely, for building.
In the latter category, we find all the plots on which it is possible to construct new buildings.
Some exceptions allow construction even on agricultural land, but these are rare cases.

Building plots obviously have a higher price compared to the other mentioned category.
When compared to more immediate solutions, choosing to build a new house from scratch could require more time and money.
However, there are also many advantages: let’s discover them together.

The Costs of a Building Plot: Prices per Square Meter

The prices of a building plot should obviously be considered based on the square meters and may include numerous variables in the total calculation.
The main influencing factor is indeed the location of the plot in question.
A building plot located in Northern Italy will have different costs compared to a plot in Southern Italy.

Ignoring geographical boundaries, the average price of a plot is around 600 euros per square meter.
In the North, prices are on average around 620 euros per square meter, ranging from 660-670 euros in the Center (the most expensive area) to just over 500 euros in the South.

However, it is essential to consider the actual value of the land, as the higher the cost, the higher it can be sold with greater profit prospects.

The Value of a Building Plot: Examples to Understand

The value of a building plot is determined according to a numerical formula, which involves multiplying the land index by the surface area of the entire lot.
In addition to this, the market value per square meter and the percentage impact of the building’s price on the land are also added.

This formula, although seemingly complex, provides those who apply it with a crucial piece of information.
However, it is highly recommended to seek the expertise of a professional.
Only those who view the real estate market with the help of data can then calculate the actual value of a buildable plot in a precise (or at least realistic) manner.

Furthermore, to ensure that the land is effectively buildable, the relevant General Urban Plan of reference must be considered.

How to Buy a Building Plot: Expenses to Take into Account

If you intend to buy a building plot, there are some things to know.
First of all, before proceeding with the financial discussions, you need to have various documents such as ownership title, preliminary purchase agreement, notarial deed, cadastral survey, and planimetric survey.

Regarding expenses, there are fiscal aspects not to be overlooked.
If the land is purchased from a private individual, you will have to pay the land registry tax, amounting to 9% of the fiscal value.
In addition, both mortgage and cadastral taxes involve a total supplement of 100 euros.

Annual property tax (IMU) will also have to be paid, except for the first home.
There is also the cost of the notarial deed, which can vary from a few hundred euros to even thousands.
Fortunately, there are VAT benefits that can help offset these costs.

To be eligible for VAT benefits, the construction must start within a year of buying the land.
All late operations will make any possibility of receiving the coveted benefit vanish.