What is the term used for the value increase resulting from combining multiple parcels of land?

The term that describes the value increase resulting from combining multiple parcels of land is known as plottage. This concept refers to the enhanced value that occurs when two or more adjacent properties are joined together to create a larger parcel. When landowners combine parcels, the resulting larger lot often has a value that is greater than the sum of the individual parcels, due to factors such as improved usability, increased development potential, or enhanced appeal to buyers.

Assemblage refers specifically to the act of combining those parcels of land, while plottage describes the value effect of that action. Therefore, when multiple parcels are assembled, the increase in value that arises from this process is referred to as plottage.

In this context, substitution describes a principle in real estate valuation rather than a concept directly related to the combination of land parcels, and progression relates to the increase in value of a property due to its proximity to higher-valued properties. Understanding these terms and how they interconnect is essential for discerning the nuances of real estate value assessments.