Understanding the Planning Permission Process
October is Landcorp International’s ‘Learn to Invest Month’. We will be sharing a 5-part expert guide to investing safely and profitably in development land.
Part 3. looks at the process for obtaining permission to develop a piece of land for commercial or residential use, including the importance of zoning…
The zoning (classification) of land is the absolute foundation upon which any planned development will or will not gain planning permission approval and should be used as the principal decider for investment or not. Land zoning stipulates what can and cannot be built on a given piece of land, set by the local planning authorities.
There are many different types of zoning including land allocated for commercial premises, residential development, resort development and farmland. Other areas may be designated Greenfield, protected land or areas of natural beauty that will never be rezoned for development.
Some land may be rezoned, which involves the local authorities changing the permitted use of the land. This may happen in the case of land already zoned for development but changing from one type to another i.e. from commercial use to residential. It may also include Greenfield land being zoned for urban development or equally the rezoning of abandoned or underused brownfield and greyfield sites for residential or farmland uses. However, what is important to remember is that there is generally no rule of thumb that can predict whether a piece of land will be rezoned. Each piece of land is generally assessed on a case-by-case basis by the local planning department.
The following step-by-step guide explains the planning process of development land. This guide is approximate and may vary from country to country.
Step 1: Research to find the right piece of land with development potential
To determine the development potential of any given piece of land, it must be checked to see if its zoning allows for development. Protected land will never be allowed to be built on. Land zoned for commercial use cannot be used for residential developments, and vice versa. If you hope to get the land rezoned, you will need to put forward a strong case for the proposed development use.
Due diligence and other detailed studies should be carried out about the local economy, population growth, migration, employment levels and property market to ascertain if there is demand for the particular planned development in question.
Other important searches would include if there is any debt or claims to the land and if there is direct access.
Step 2: Prepare and present the Conceptual Master Plan for development to the local authorities
The Conceptual Master Plan is a detailed proposal of the buildings, amenities and overall purpose for the proposed development. Expert professionals should be engaged to prepare the plan including Master Planners, Engineers, Project Managers, Architects, Legal Experts and Designers.
Step 3: Submit an Infrastructure Plan to the local authority for approval
The Infrastructure Plan details the roads, water supply, electricity supply, sewage system and the location of building plots. This will be submitted for approval once the Conceptual Master Plan has been approved.
Step 4: Submit Architectural Plans to local authority for approval
Once the Infrastructure Plans have been approved, the Architectural Plans detailing the types of buildings – both residential and commercial – proposed for the development are submitted for approval.
Step 5: Submit Technical Drawings to local authority for approval
Following architectural approval, technical drawings of the buildings and the locations of the individual building plots will be submitted for approval.
Step 6: Development agreed and rezoning approved by the local authority
Rezoning, if you have applied for it, is approved permitting the land’s usage in accordance with the Master Plan and planning permission approved. Development of the land can now proceed.
Important Note: From step 2 onwards, a positive response from the local authority is required to advance the project. If at Step 2 approval is not granted, the development company will modify the plans and represent them again, until approval has been secured.
In our next post, you will learn what to look for when selecting a piece of land you hope to develop, helping you assess the potential risks and rewards.
