What is Land Banking?

Land Banking is simple:

1.Buy raw land in the path of urban development

2. Put in concept plan 

3. Value of land increases with each level of planning approval

4. Sell land to property developer

This diagram shows the land banking process in Serbia open to foreign investors:
you can either buy agriculture land at a low price, construction land at a higher price, or construction land with a building permit at a even higher price.

Land banking investment in Serbia is simple is you look at the factors which will increase the value of the land over time.

-Population growth in an area
-Economic situation
-planned infrastructure
-political situation

Land Banking is a Proven Concept

Purchasing agricultural, green belt land is nothing new - large developers and the super-rich have been doing it for decades. Donald Trump and Howard Hughes made a fortune from land banking. 

It is far more profitable to buy land prior to planning applications being submitted.  Having gained planning permission the land may then increase in value by 200% to 500%.  There are no complicated concepts that investors need to understand with land. Simply, there is an ever-increasing demand for expansion with a limited supply of land for purchase.