Raw Land

Raw land (also called raw lot or undeveloped land) is a parcel of land without any structures, improvements, or infrastructure development. In Philippine real estate, raw land is purchased for future development, agricultural use, speculation, or as a long-term investment. Raw land is typically the most affordable property type per square meter but carries the highest development risk and requires the most due diligence.

Agricultural land: Used for farming (rice, corn, coconut, sugarcane, etc.), governed by the Comprehensive Agrarian Reform Law. Conversion to residential or commercial use requires DAR (Department of Agrarian Reform) approval. Residential raw land: Zoned for residential development, typically within or adjacent to developed areas. Commercial raw land: Zoned for commercial use, usually along major roads. Timberland/forest land: Government-owned, generally not available for private development. Industrial raw land: Zoned for manufacturing and warehousing.

Critical checks before buying raw land: (1) Title verificationu2014ensure the seller has a valid title (TCT or OCT) and there are no liens, encumbrances, or pending cases. (2) Tax declaration and real property tax payments. (3) Zoning classification and permitted uses. (4) Accessu2014verify road access or right of way. (5) Topography and soil conditions. (6) Utilities availability (water, electricity) or cost of bringing them in. (7) Flooding and environmental risks. (8) Survey verification by a licensed geodetic engineer. (9) Agrarian reform coverage (for agricultural land). (10) DENR clearance if near forests or waterways.

Raw land is the purest form of real estate investmentu2014no tenants, no maintenance, no depreciation of structures, but also no income until developed or resold. Returns come from appreciation (5-20% annually in developing areas) and potential for rezoning or development. Risks include illiquidity, carrying costs (property tax), development restrictions, and the possibility that expected development may not materialize. Best suited for investors with long time horizons (5-20 years) and tolerance for illiquidity.

Raw land ownership is governed by the Civil Code, the Property Registration Decree, the Comprehensive Agrarian Reform Law (RA 6657), and the Local Government Code. Agricultural land conversion is regulated by DAR and requires a conversion order. Timberland and national parks are government-owned under the Forestry Code. Foreigners cannot own raw landu2014only Filipino citizens and Filipino-owned corporations (at least 60% Filipino equity) can. Under the Indigenous Peoples' Rights Act (IPRA), ancestral domains have special ownership provisions. Raw land transactions require notarized deeds of sale and registration with the Register of Deeds.

Zoning Ordinance, Agricultural Land, Geodetic Engineer, Land Title, Property Survey