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Choosing the right location is one of the most critical decisions you’ll make in real estate development. The easiest way to determine a building location is by targeting areas with infill lots—vacant parcels of land within already-developed urban or suburban areas. These lots are ideal for new construction projects because they are often surrounded by established neighborhoods, infrastructure, and amenities.
Why Infill Lots Make Sense
Infill lots are typically easier to work with for several reasons:
Existing Infrastructure: These lots are already within developed areas, meaning utilities like water, sewage, and electricity are already in place. This saves time and money on costly infrastructure improvements.
Established Market: When you build in an area with existing homes, you can access comparable sales (comps) for properties nearby. These comps make it easier to get financing from lenders, as they provide a clear picture of the property’s potential value once it’s completed.
Guidance for Development: The presence of existing homes gives you a clear idea of what’s working in the area. By analyzing similar properties, you can determine key details like the number of bedrooms and bathrooms, square footage, and the level of finishes that are in demand. This makes it easier to design a property that will appeal to buyers or renters in the area.
Building in an area with existing comps helps you align your project with what the market expects. It also makes financing easier since lenders can rely on these comparable properties to assess the value of your development.
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