What is the primary benefit of plottage value?

The primary benefit of plottage value lies in gaining higher value from assembling properties. This concept refers to the increase in value that can occur when multiple adjacent parcels of land are combined into a larger single parcel. The combined land typically possesses a higher market value than the sum of the individual parcels, as the larger property may have enhanced development potential, improved land use versatility, or better access to resources, which can attract more buyers or investors.

The uniqueness of plottage value emphasizes the economic principle of synergy where together, the properties can serve more significant purposes than they could separately. For instance, a developer may see greater potential for a larger project, such as a shopping center or residential complex, when parcels are combined, thus justifying a higher price for the larger assemblage. Understanding this benefit is crucial in real estate, as it can significantly influence investment decisions and property development strategies.