ReaConsult — Expert Immobilier Certifié RICS au Maroc
Free tool · Residual method aligned with RICS VPGA 10

Developer feasibility calculator — how much is your land worth ?

Estimate in 2 minutes the maximum residual land value a developer can pay for your plot in Morocco — or model the feasibility of your own operation. Market benchmarks are pre-filled and remain editable.

Essential inputs

Gross floor area / plot area (see urban planning document)

Programme & sale price

Free input — depending on your district / city
Pre-fills construction costs. Each value remains editable.

Construction costs (MAD/m² GFA)

How residual land value is calculated

Residual land value is the maximum price a developer can pay for a piece of land while keeping the target margin. That single figure separates a viable deal from a write-off — and underpins every transaction on buildable land.

The calculation uses the residual method (RICS reference under VPGA 10):

Max LV = Forecast net sales
     − construction costs (TCE + site works + fees + utilities)
     − finance costs (rate × duration × % financed)
     − marketing + contingencies
     − target developer margin

The 4 levers that move land value

  • FAR (Floor Area Ratio) — moving FAR from 1.5 to 2.0 increases allowable GFA by 33 %, hence (at constant costs) revenue. The #1 lever.
  • Average sale price per m² in the district — drives the top-line. Recent comparable transactions are essential (asking prices do not reflect closing prices).
  • Target standing — premium product sells higher but builds more expensive. The right standing matches what local demand can absorb.
  • Target developer margin — typically 15-20% of net sales in Morocco. Higher target margin = lower maximum land value.

Why a calculator cannot replace a formal land valuation

The calculator gives an indicative range. For a real plot, several decisive elements cannot be captured in a form:

  • Actual urban planning rules — beyond FAR, regulations specify height, setbacks, parking minimums: each constraint erodes usable GFA.
  • Recent land comparables — closed transactions within the area over the last 18-24 months reveal the real market range.
  • Site-specific constraints — geotechnics, access, utility connections, demolition, environmental.
  • Sensitivity analysis — what's the value if target margin rises to 25%? If sale prices drop 10%? A formal valuation provides the full matrix.

The calculator is step 1. It frames an order of magnitude and helps decide whether to go further. The formal land valuation is step 2 — the one that produces a defensible value for negotiation, project structuring or investor presentation. Request your personalised study from a RICS-certified expert.

Need a professional land valuation?

Our RICS-certified experts deliver land valuation reports aligned with international standards (VPGA 10), with comparables, market sensitivity and regulatory feasibility analysis.

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