Renovation & construction
What to Build on a 2000 m² Plot: Two Villas, Townhouses or an Estate
The format for a 2000 m² plot is set by the municipal plan, not by investor taste: permitted floor area, minimum plot and division rules. After that, the formats differ in number of exit sales.
There is no single best product for a 2000 m² plot. The plan first decides how much housing is allowed at all, and only then are the formats compared by number of sales and ticket size at exit. Here a "product" is the form in which built-up land reaches buyers: separate villas, a row of townhouses or one estate. Dividing a plot in Catalonia generally requires a licence: urban parcelling (parcelación urbanística) is subject to a licencia, except in cases such as a reparcelación project, and the notary and the land registry ask for either the licence or a declaration that none is needed when the deal is formalised (arts. 191–193 of Decreto Legislativo 1/2010).
What decides how many houses are allowed on 2000 m²?
The municipal plan (POUM or PGM) decides, not the area. Four parameters are needed before any calculation: the land class, the edificabilidad (how many m² of building are allowed per m² of plot), the minimum parcela and the permitted number of houses. If the land is neither urbanizable nor urbano, parcelling is impossible: on suelo no urbanizable (non-developable land) urban parcelling is not allowed "en ningún caso", under any circumstances (art. 195.1).
The minimum parcela limits division separately. Under art. 196, plots whose size equals the plan's minimum or is smaller are indivisible, and so are plots smaller than twice the minimum. A 2000 m² plot with a 1000 m² minimum yields exactly two lots, not three. How to read these parameters is explained in the article on edificabilidad, and how to derive the maximum land price from them in the article on the residual method.
How do the three products differ?
| Product | Legal requirement | Sales at exit | What most often breaks the scheme |
|---|---|---|---|
| Two villas | Division into two lots: licencia de parcelación or a ruling by the ayuntamiento (town council) that none is needed | 2 | The plan's minimum parcela is more than half the plot |
| Four townhouses | Four lots (the same licence); common areas can be tied together under propiedad horizontal por parcelas (a condominium-type regime built over independent plots, solares) (art. 553-53 of the Código Civil de Cataluña) | 4 | The plan caps the number of houses and the minimum parcela; common areas need statutes and upkeep |
| One estate | No division needed, but the plan must allow a large house and ancillary buildings | 1 | A narrow pool of buyers at a ticket of that size |
If each house is given a plot for exclusive use without dividing the land, that too may be treated as parcelling (art. 191.1.b). Which route to take is for an abogado urbanista (planning lawyer) together with the ayuntamiento, not for a table.
What does the comparison look like in round numbers?
A worked example, not a forecast and not market prices. Assumptions: the plan allows 0.4 m² per m² of plot, that is 800 m² of building, and the sale price is the same, 6 000 € per m².
| Format | House area | Ticket per sale | Project revenue |
|---|---|---|---|
| 2 villas | 400 m² each | 2.4 M€ | 4.8 M€ |
| 4 townhouses | 200 m² each | 1.2 M€ | 4.8 M€ |
| 1 estate | 800 m² | 4.8 M€ | 4.8 M€ |
Revenue matches only because the price per m² was set equal. In real life it is not equal: the larger the ticket, the narrower the pool of buyers. If the estate sold 15% cheaper per m², that is for 4.08 M€, the project would lose 720 000 € against the other two formats. This is a sensitivity, not an observation: open sources do not publish the real spread by ticket size.
Is there a fourth option: selling the plot with a licence?
There is, and it is the only format for which DNPI has a completed case. In Sitges a plot was bought for 509 250 €, permits and licences cost 20 000 €, and the plot was sold with the licence for 760 000 € within two years. The difference of 230 750 € is the sale price minus the purchase price and the stated costs. It excludes taxes, financing, closing and other expenses: it is not net profit and not the investor's return. Past results do not guarantee future ones. More in the Sitges project and in the comparison of a plot with and without a licence.
Who is this analysis not for?
Anyone whose plot is on suelo no urbanizable: there will be no division and no residential building there. Anyone expecting a figure for "how much one earns on 2000 m²": it depends on the plan, the location and the exit, and open data has no such figure. And anyone who needs the money by a fixed date: the time to get a licence and sell cannot be set in advance.
To check a format against a specific plot, start with the land strategies page and the calculator.
Questions and answers
Can a 2000 m² plot be split in two without a licence?
As a rule, no. Dividing a plot, or splitting it off in successive steps in a way that makes building easier, counts as urban parcelling and needs a licencia. If the ayuntamiento decides a licence is not required, that is recorded in a separate declaration, and the notary will ask for one of the two documents.
Which is cheaper to build: two villas or four townhouses?
It can only be compared using the budget and plan of a specific plot. I found no general cost figure for such a comparison in open sources, so I do not give one.
Why can't a plot simply be split into as many lots as one wants?
The plan's minimum parcela stands in the way: under art. 196, plots smaller than twice the minimum are indivisible. In addition, lots obtained in breach of the rules are not treated as solares (buildable plots) and nothing can be built on them (art. 195.2).
What is the minimum amount for plot projects?
Plots start from 1 M€; residential and commercial property also from 1 M€, hotel projects from 3 M€, whole houses from 10 M€.
