What is the term for purchasing unimproved land specifically for development purposes?

The term used for purchasing unimproved land specifically for development purposes is speculative development. This refers to acquiring land with the expectation that it will appreciate in value or can be developed into residential, commercial, or other types of properties in the future. Speculative developers typically seek to anticipate market demands and trends before making significant investments in the land, often without immediate plans for building.

This approach is often characterized by the idea of taking a calculated risk, as developers invest in land based on projected future value rather than current use. Investors in speculative development aim to profit from the increased value of the land once it is improved or once demand in the area rises. This further distinguishes it from other types of development, such as residential or commercial, which may have specific and defined projects already planned. The focus of speculative development on land acquisition for anticipated future use underscores its unique nature in the real estate market.