DEVELOPERS are expected to substantially increase the amount of planning applications to local authorities next year but not in a bid to actually build anything.

According to property experts, a significant increase in applications is likely to occur in a bid to inflate the value of land for its eventual purchase by the National Asset Management Agency (Nama).

There is now a widespread belief that, despite the cost of such a tactic, developers will begin to apply for planning simply to drive up their Nama valuations. The agency will be examining those sites worth a minimum of €5m.

"Sites without planning permission­ are not worth very much so, absolutely, getting [planning permission] will enhance the value," said economist Jim Power.

"Even if you do get planning what is the incentive to go ahead with it anyway? The market is very, very weak at the moment."

Power said the attachment of planning permission would make any site easier to shift in the future, leaving it more attractive to Nama and to current owners.

Jeff Tucker, a property economist and consultantformerly of Hooke & MacDonald, said the approach is largely reflective of traditional ones.

"Part of the specific process of buying land in the past was that it may not have zoning and then getting zoning and then planning, and then selling it off," he said.

"It would make sense for developers to maximise the value for as much as they can."

One potential stumbling block could be the cost of filing applications. Aside from the actual fees paid to local authorities, there is the cost of architects, quantity surveyors, engineers and environmental impact reports.