Greenfield Sites for property investors in UK

Greenfield Sites for property investment guide by pluxa property

Greenfield sites for property investors in the UK are essential to know as these developments can balance the demand and supply for housing and commercial properties. The type of site you choose for your project can significantly impact the overall planning process, development costs, and profit margins. 

With our experience of 12+ years in the property development market, we can assist you with the Greenfield site preparation and development process.

This guide gives you an overview of the Greenfield site and multiple other property sites in the UK.

What is a Greenfield Site? 

A Greenfield Site is an underdeveloped land that you can use for both residential and commercial development. These are sites that haven’t been used before for urban development or have any buildings on them. When new homes or other construction projects are built on these sites, they are reclassified as developed Brownfield sites. 

These sites often incur less development costs as there is no former construction to demolish or remove for developing new buildings. 

While choosing such lands, you must check the surrounding land usage, proximity to consumer market and logistics partners, and different zoning regulations. 

One successful Greenfield project is the development of a sustainable town on a 2000-acre greenfield site in Aberdeenshire. This project aims to create a great community with nearly 8000 homes, shops, schools, office buildings, and green spaces. 

What is a grey belt land in the UK? 

A grey belt land in the UK is comprised of brownfield sites and the poor quality and ugly areas of a green belt, like scrubland and mothballed on the town outskirts. These grey belt development projects aim at delivering affordable homes, new infrastructure, and better green spaces. 

To meet the increased need for housing in Britain, releasing of these lands is required. However, the government sets harsh conditions and regulations for the use of these lands for residential and commercial property developments.

Why do housing developers prefer to use greenfield sites?

There are multiple reasons why housing developers prefer to use Greenfield sites, such as:

1. Lower development costs

Greenfield sites are primarily agricultural lands, woodlands, forests, etc., located in rural areas. They are cheaper to acquire, but urban sites can be costly. There are no existing buildings on such sites, so you can save on demolishing costs. 

2. Flexibility in choosing property size and design 

These regions are new and can be designed according to your needs, unlike brownfield areas that are constricted to the site. It gives better opportunities to design community-focused residential and commercial developments. They’re located in rural or suburban areas and provide more space than brownfield sites. 

3. Expansion of city or town

Greenfield sites are located outside of cities and towns and give developers an opportunity to expand city and town boundaries. This provides sufficient housing for the rising population in the UK. Anyone purchasing properties in such areas can get the advantage of living near a city and avail of better facilities, transportation, and employment options. 

4. Ease of property development 

Greenfield sites are often vacant and have no previous infrastructure, which makes development easier. Developers save time on demolishing existing structures and site preparation, allowing faster project completion. Also, these sites have a simple planning process and easy to acquire project approvals. 

What are the types of Greenfield sites?

The types of Greenfield sites can be agricultural land, forest and woodland, moorland, and urban lands. These can be privately or publicly owned properties located in rural or suburban areas, as well as in urban sites. 

1. Rural/Countryside Greenfield Sites

These are mainly agricultural lands that are underdeveloped plots located in non-urban areas, including forestry land, farmland, wild land, and moorland. 

Advantages for Investors and Developers:

  • Lower land cost: Rural Greenfield sites are more affordable than urban areas, offering higher potential returns for both investors and developers.
  • Less complex regulations: There are fewer zoning regulations in such areas and simple planning processes, making it easy for developers to complete real estate projects 
  • Attractive environment: The government provides nearly £7 million to boost the nature of rural areas and ensure no one should live over a 15-minute walk from a green space. This increases the housing demands of nature-loving people, which makes construction on such sites a significant investment. 

Disadvantages for Investors and Developers

  • High infrastructure costs: Developers pay higher infrastructure costs in building roads and utilities for rural-side development projects. Additionally, higher costs in transporting materials and bringing labourers increase the overall development costs and reduce the profit margin. 
  • Market risk: Though scenic beauty attracts people to such places, the demand is still low compared to urban areas due to the unavailability of amenities and better opportunities. Lower market demand can result in huge losses or low return rates for investors and developers.
  • Less market accessibility: Rural greenfield areas are located away from consumer markets and have less access to logistics supply and labour markets. This affects the project viability, reducing the profit margin for developers and investors.

2. Urban Greenfield Sites 

These are open spaces or underdeveloped lands in urban areas. There are no previous construction works done on the site, and it has never been used for urban development. Though most of the Greenfield sites are used for agriculture, you can find them in urban settings. 

Advantages for Investors and Developers

  • Higher demand: Properties in urban areas have greater demand, leading to higher returns on investment.
  • Proximity to market: These sites are often closer to consumer markets, enhance commercial and residential property viability and faster project completion 
  • Lower development costs: Due to the availability of amenities, transportation networks, and public services, developers can save on infrastructure costs. 

Disadvantages for Investors and Developers

  • Higher land cost: Urban sites are expensive compared to rural Greenfield sites, which makes investments costly and lower profit margins for investors and developers.
  • Increased competition: Competition in the urban areas is high due to increased demand for residential and commercial properties near prime areas, making investments riskier.
  • Complex regulations: These areas have strict zoning regulations and complex plan approval processes, making the whole process complicated for developers

Does Greenfield Mean Green Belt?

No, Greenfield doesn’t mean Green Belt. Though you can find some Greenfield sites within the Green Belt area, most of these sites are away from it. 

The Town and Country Planning Act, 1947 introduced the Green Belt to local authorities, allowing them to develop green zones around urban localities and reduce the unrestricted urban sprawl of large built-up areas. 

Green Belt is one of the protected lands in England, and building new homes is restricted for different reasons, such as protecting the environment and conserving heritage assets. 

Most of the Green Belt lands are used for agricultural purposes; a small part includes forest, open land and water, and 3.2% of the land is used for residential purposes. 

You can learn more about Green Belt land from the National Planning Policy Framework

What are the differences between Brownfield and Greenfield?

The differences between Brownfield and Greenfield are in their nature and the status of a project or development site. 

What are Greenfield sites?

Greenfield sites are underdeveloped areas located usually on agricultural land outside a city. Developers highly demand them for the construction of manufacturing plants and other commercial projects because they are more shovel-ready. 

What are Brownfield sites?

Conversely, Brownfield sites are underutilised, abandoned, or contaminated sites with buildings on them. Redeveloping these properties reduces environmental impacts, provides tax revenue, and improves the social structure of the surrounding communities. 

The difference between Greenfield are Brownfield sites 

Greenfield sites are preferred over Brownfield because of their ease of construction, faster construction timeframe, and better suited for modern technologies and construction practices. 

Developers with the following factors choose Greenfield sites 

  • Zoning changes 
  • Custom-built rooms with potential for future expansion 
  • Convenient access to highways for shipping and deliveries
  • Limited site preparation required 

Developers choose Brownfield sites when they need to refit or upgrade an existing building, such as a warehouse or office building, to meet a company’s needs. 

These sites are chosen for the following factors

  • Availability of government funding to offset redevelopment costs
  • Proximity to urban centres and consumer markets
  • Access to a vast labour market
  • Lower site purchase price
  • Utilisation of existing infrastructure to reduce overall development costs

How Pluxa property helps you in property investment in the UK 

Pluxa Property has experience in dealing with property investments in the UK and can help you find the best property in the country. We understand your investment goals and then customise our strategies to meet them within a shorter period. 

You can start with relatively lower capital. Invest £10,000 and earn a monthly return of £1000, which will rise over time. We provide the best strategies to keep higher profit margins for property investors. 

To know more about how we work and what advantages you can get, speak to our team at your convenience!

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