land banking
Holding undeveloped parcels
Land banking is the practice of acquiring land and holding it undeveloped for future use or profit.
Developers and investors buy parcels expecting values to rise as urban areas expand: The company has been land banking on the city's outskirts for decades.
Governments also land bank to preserve green space or control development patterns.
The strategy ties up capital but can yield substantial returns when the land is eventually sold or developed.
- speculationUnproven theorizing or risky investment
- real estateLand and its structures
- prime locationHighly sought real estate
- investmentDeploying capital for returns
- holdingMaintaining physical possession
sit on it · holding pattern · acreage · development · vacant · parcels · appreciation · paper profits · zoning · subdivision · farmland · acquisition · flip · plots · property · hoarding · greenfield · rezoning