Real estate in Malibu has always been highly valued. In the recent past, land sales here have picked up. Real estate agents say that the number of enquiries they get about buying land in Malibu is increasing each week. Agents get about five to ten enquiries a week. One of the reasons for this trend is attributed to the high costs of buying ready-to-move homes in Malibu. Buying land is more cost effective than buying homes. Additionally, the value of land escalates more than homes.

While increase in land sales in a positive trend, there are certain factors to be kept in mind before making the final decision. Firstly, the location of land is an important consideration. According to real estate experts, the average cost of land in Malibu is $500,000. Lands priced less than this amount should be considered affordable. However, cheaper lands come with certain overheads.

Malibu is the hub of development and hence, the cost of any area that has a good potential for development remains high. If a land is priced low, it is because it lies in an undesirable area. In such places, either the cost of construction tends to be high or the scope of development is limited. For example, lands located on steeps of mountains are cheap. To build a home here, the builder will have to clear a lot of rocks and install caissons for stability. So, although the land came in cheap, the cost of construction remains high. Comparatively, land located on flat areas are more expensive but cost of development is low. Furthermore, the appreciation of land value is more for planes than in the mountainous terrains.

Another reason for affordability of lands here is access. It is very likely to cheap lands are difficult to access. Due to their location, it might be difficult to lay a road to these development. Some of these lands might not pass the stipulations set by the fire department of Malibu, which requires a minimum 20 feet width of road. Cheap lands might not have proper access to essential utilities and water as well.

When buying a piece of land, buyers need to consider its likability factor from different perspectives. The feasibility of development also needs to be considered. As experts agree, it would be a wrong decision to buy land solely based on its cost.

About Malibu Living: Malibu Living is a real estate firm located in Malibu. Headed by Bill Chadwick, the firm deals with the sales of homes and land. They also undertake property development and have developed four spectacular properties on Carbon and LA Costa beaches.