Greenfield Development

What is Greenfield Development? – An Overview

As the name suggests, the prospect of developing a Greenfield land or land that has not been used before for various different types of projects is called Greenfield development. As cities and towns grow and the population of human beings grows all over the world, more and more Greenfield land is being used for development. A good example of Greenfield development is cities expanding. As the population of a city grows, new suburbs of the city emerge. These suburbs are established, as the periphery of the city limits is expanded. More and more Greenfield land on the outskirts of the city is used for development. Every time a new plot of land which was never used before is developed as the city expands, Greenfield development takes place. Greenfield development is an inevitable aspect of human civilization but there are also many critics of Greenfield development if it is not done in a sustainable way.

Also Read: Brownfield Development – Background, Setbacks and Examples, Wasteland Management

Greenfield development is a term often used for land that has not been used before for any human activity like agriculture or real estate development. Greenfield Land is generally land where there is no development of any kind. These open fields evolve on their own volition and are often sprawling expanses of land near cities and in the countryside. These lands which are not used for any purpose can be classified as Greenfield lands. Greenfield land is available in urban areas as well as rural areas. The land between towns and cities all over the world which is unused and characterized by grass, barren lands, and wild growth of vegetation and open fields is Greenfield land. This is the land on earth that is untouched by human beings and exists in its natural habitat.


Types of Greenfield Land

  • Greenfield Land is open fields which lie between cities and towns or in suburban areas. These are unfenced open fields which often have wild natural vegetation growing unchecked and as per the climate of the region. In dry areas, barren fields which are not used for construction or any agricultural activities are also called as Greenfield lands.
  • Restricted closed properties with no development often owned by the government are also Greenfield lands. Governments of most countries own vast areas of land in the country in the rural areas and the semi-urban and urban areas.
  • Private property with or without fencing is the land bought by the owner and not used for any purpose or kept for future use is also Greenfield land.

Reasons to use Greenfield Development

These days, the Greenfield development takes a necessary role in constructing lands in unused or green lands. In fact, this is often known as desirable locations for construction projects with some challenges. It is used to develop lands that are associated with Greenfield sites and known for compared with sites. When compare with Brownfield sites, Greenfield development normally takes part in accessing with used development. This includes distinct solutions and able to develop the projects in Greenfield locations. It has been taken with the building process and therefore considers sites are a desirable option. There may be space and room to expand the development. It is used for creating development and therefore brings forth attention in constructing with better access with the right development. It is more pleasant and looking green environment taken at the right edge.

Related: Importance of Greenfield Development

On the other hand, it is taking with international projects that are considered by commercial development, industrial projects and so on. This usually takes the proper approach and includes an area for agriculture or forest land. When there is the undeveloped site, it earmarked for commercial purposes and includes construction purposes. It does not contaminants by typical present values. The land has been evaluated when it suppose to deliver a pleasant environment. This is moreover the best approach for grabbing commercial and industrial purposes for desirable changes in the new land development. It is taking less congestion and a more pleasant environment that is necessary for operating with desirable locations for cities. The cities are located near and thus it is considered the best locations for adapting Greenfield development. It includes space and there is more space when compared with others. It is operating for future use and thus needs to develop by desirable changes for right development. Moreover, this is often known for expanding with the edge of towns made with desirable changes in less congestion.

Related: Garden City Movement, What is Urban Growth

Commercial and industrial purposes

When developing Greenfield development, it has both pros and cons for the building. They are using untouched lands and usually, that is in very good condition to develop so. This quickly makes it possible so that it takes part in cost-effective changes in development. It comes to denotes price for the environment that has lots of things suitable for building new land contributes and changes in deforestation with natural habitats. It is used to develop few changes in the Greenfield development in order to obtain the right sources for developing it so. Moreover, it is taking part in considering lots of changes in day to day life and may have better access with less congestion. This could assist in bringing changes in the pleasant environment changes to happen in the commercial development and hazardous substances to remove. When developing it so, it includes Greenfield lands that are cost-effective and carried out without any trouble. It sometimes leads to deforestation and destruction of natural habitats.

Developing in the new platform

Some of the land developing programs are conducting because of stimulating economic welfare of regions. It is used to develop Greenfield sites in major countries that are carried out by tax increment financial guarantee program as well as others. Therefore, it is used to develop according to a significant amount of changes in new welfare development for land. It sometime referred to an expansion strategy that includes the specific project in new property and from the ground map. It is derived from a green patch of grass that existed in the plot and land becomes developed. There are different programs conducting in case of operating with Greenfield projects suitable for operating with necessary solutions. It could derive from specific project approach that initiates in developing new platforms. This may have a better assignment for operating under Greenfield and associated to expand the development for future use. It meets under urban sprawl and can lead to considering desirable and comes at a price of the environment. Without harming natural habitats, the development of a Greenfield takes part in legal activities.

Growing portfolio changes

It has a steady growth strategy that is relying on property acquisitions. It could involve the right pattern and already bring existing properties taken to measure by growing right investment in the Greenfield areas. With the right development, it could perform or distressed property that belongs to buying or selling the fields. It involves buying already existing properties which consider right acquisitions. Moreover, it has been referred to some in investment literature. This could depend on largely prevailing economic conditions used for construction costs. It is safer and considers over Greenfield development that are necessary for operating under government regulations and costs. However, it is used to perform in some investment literature that has accessed with growing portfolio changes. When buying of underperforming property, it changes with the right solution and carries out to adopt with two basic strategies.

Decent investment

It is taking low interesting portfolio that depends largely on prevailing with interest rates. Moreover, the recovery costs are carried out by comparing with property valuations. This is necessary for operating with government regulation and consider for Greenfield developments as an expansion strategy over property acquisitions. During times of high construction costs, the projects are relatively low and include property valuations. In infrastructure, the project is designed by taking right government actions and evaluates Greenfield developments as right strategy. It includes recovery costs and significantly taking with demolishing an existing structure. The projects are not allowing a prior work and take only unused lands and there is no need to remodel and destroy an existing structure. Moreover, the projects are modified and upgraded called Brownfield projects. The Greenfield investment has lots of facilities in a foreign country and refers to safe investment process in physical company-related structure.

Existing facilities

There are several reasons to grab the company role and it includes lots of facilities when evaluating Greenfield development. This includes lots of strategies in developing the property to meet the requirements clearly. Most importantly, this should be realized in operating with the right project needs and suitable for forces the company to adjust based on the present design. It includes existing facilities that are often considered by advertising and operation to attract land development. They are more favourable and it could deliver by the right project design and needs. It takes capital investment and leads to generate with the primary reason for operating new facilities. If the operation begins to carry out ease, the Greenfield developments for accessing with the edge of towns and located quickly. Plus, it is located a better access and thus involves space and expand quickly.

Categories of Greenfield Land

There are different types of Greenfield lands available to a potential developer. They can be categorized as follows:

  • Rural land with a very small population in neighboring areas and poor accessibility. There are very few livability factors available at these types of lands and generally, the value for the development of these properties is low.
  • Urban land that has previously not been used for any purpose. This type of land has high value to developers.
  • Semi-urban land on the outskirts of towns and cities which has a good accessibility and potential to develop.
  • Barren lands with few natural resources readily available like water and vegetation and difficult climatic condition.
  • Greenfield land which cannot be used because there are natural resources like forests, trees, lakes and other environmental factors that need to be conserved on the land.

Choosing a Greenfield Land for Development

There are many Greenfield sites around the world where there is no prior developmental activity that has taken place. Choosing a site for development is not an easy task. There are different types of projects that use Greenfield land for the projects. These include commercial real estate, housing, building plants and factories or manufacturing units or building government infrastructure or even just building a local park. Greenfield land is also used for solar panels, windmills, and other renewable energy projects. The following are some of the criteria that developers need to consider while choosing a Greenfield site:

  • Proximity to roads and transport facilities and also proximity to other developed areas like towns and cities.
  • Type of project is a very important aspect of choosing a Greenfield land. For example, a residential project needs land in and around the city whereas a factory can be a little away on the outskirts of a city.
  • Soil surveys, surveys of existing drainage and sewer facilities are important aspects of scoping out a land for future development. Without the knowledge of the type of soil and the type of land available on the property, buying the property for developmental purposes is not advisable.
  • There also has to survey regarding services available in the area like electricity, gas, telecom, water, and other services. Development is not possible without access to these services and so they are a factor while selecting a Greenfield development project land.
  • Before buying a Greenfield site necessary permissions need to be taken from local authorities to get the permission to develop a Greenfield site. Buyers need to check all the legalities regarding the land and check if there have not been any encroachments or any other claims on the property.
  • A site visit is an important aspect of buying the land. The land should be clear on any encroachment and also should not be contaminated in any way.

Sustainable Greenfield Development

Greenfield land

  • One of the main problems facing Greenfield development is environmental protection. Climate change and environmental destruction caused by human activity is a serious problem around the world today and a major concern in environmental education.
  • Many Greenfield land areas are protected all over the world by the government and developers do not get clearances or permissions to develop these lands for human consumptions.
  • Destruction of forest lands or destruction of natural habitats of wildlife and plants is restricted in many areas. There are designated wildlife lands where plant species and animal species have a protected habitat and this type of land cannot be used for Greenfield development. Also, various types of environmental pollution need to be taken care of.
  • Forest reserves, wildlife sanctuaries, city parks, national parks, water reserves, hills, mountains, forests, the land around rivers and lake areas are protected and these are not allowed for Greenfield development.
  • As environmental protection becomes more and more important every year, there are more and more Greenfield sites which are protected from environmental factors.
  • Sustainable Greenfield development is the development of land which is not in use without destruction of the natural habitat and environment of the region.

Greenfield Development – An Inevitable Choice

At the end of the day, as human beings enter a developed and modern age, more and more land which was previously a Greenfield land is going to be developed for consumption. Greenfield development is done in a range of different projects. Greenfield development as mentioned above is the development of a land which was previously never used. More often than not, once Greenfield development takes place, the land does not return to its original form anytime in the future. Greenfield development is done in a sustainable way in the 21st century in most areas as there are strict government rules as to how the land has to be developed. The government generally ensures the protection of the natural habitat of plants and animals and only gives permissions for Greenfield development after all the rules are properly followed by the developer.

The Greenfield development normally takes place in evaluating edge of a town and locations are developed so far by the government plans. It has never been built on and it could be planned well for Greenfield projects. Greenfield generally contains no significant amount of toxic materials rather it develops projects without creating harm. It includes many spaces and thus price may be charged with building new land contributions. This is operating throughout the land so that it identified with development procedures. There are new facilities that have been changing with the new operation and attract employees use for Greenfield development. It is considered for changing with new development policies. It is used for enlarging with large projects that are considered for changing with right policies and hold by Greenfield development.

Also Read: Land Use Planning in India, NIMBY, Factors Affecting Land Value