Posted in Finance, Accounting and Economics Terms, Total Reads: 247
Plottage is the increase in value of a larger land made by combining small parcels of land. The value increases because of increased usability and functionality. Here the value of combined land is higher than the sum of the values of two adjacent lands. Plottage is also referred to as assemblage.
Assemblage is allowed if some of the conditions are fulfilled like the costs required to assemble the small parcels of land should be financially feasible, the assemblage of these small parcels should be possible in a short span of time, the owners of these parcels should agree for the assemblage and financially feasible, legally permissible and physically possible kind of best scenario should be possible.
For example, suppose development of city-park requires 900 acres of land and that amount of land is available in small parcels with different owners. In this case if assemblage of these small parcels happens then only development of city-park is possible in the area. So plottage will increase the opportunities available to the developers. It will increase usability and functionality of land available.