Property Valuation
Location Analysis
Analyse standard land values
Do you know the true value of your property? Often, the answer lies in a detailed analysis of standard land values, which can deviate by up to 20% from the actual market value. This article demonstrates how you can professionally interpret and use these values to your advantage.
With access to Google, BORIS, and Deep Research.
Standard land values are average values and need to be adjusted by up to +/- 30% for property-specific factors to achieve an accurate appraisal.
The analysis of standard land values is crucial for buying, selling, and inheritance decisions and forms the basis for property tax.
Online tools like BORIS systems provide access to standard land values, which are updated every two years; however, a professional interpretation remains essential.
The analysis of standard land values is a crucial step for property owners and investors. These values, determined every two years by expert committees based on § 196 BauGB, provide an initial guideline. However, the pure standard land value rarely reflects the full market value. Learn here how to determine the land value accurately through a deeper analysis and consideration of individual factors, and avoid pitfalls.
The standard land value is an average value for the land in a specific zone, specified in euros per square meter. It is determined by independent expert committees in accordance with § 196 of the Building Code (BauGB), based on collected purchase prices from past transactions. This assessment usually takes place every two years to reflect current market developments. For developed plots, the value is calculated as if the land were undeveloped. A solid property valuation starts here. Understanding these fundamentals is the first step in correctly assessing the significance of standard land values.
A base value for land is always an average value for a defined zone with comparable properties. It does not take into account individual characteristics of your specific plot, such as a special shape or a slight slope, which can influence the value by 5–15%. Nor do current, short-term market fluctuations that have occurred since the last reference date (often 1–2 years ago) factor in. Therefore, merely consulting the base value for land is often insufficient for an accurate analysis of land values. To determine the actual value, specific characteristics and current market conditions must be considered.
Alongside the official standard land value, numerous factors determine the actual value of a property. These can be broadly divided into location quality and site-specific characteristics. A thorough examination of these factors for property valuation is crucial.
Location, Location, Location: Macro and Micro Location Matter
The macro location, meaning the attractiveness of the city or region, including infrastructure and economic strength, plays a role of up to 30% in the overall value. The micro location, such as the immediate surroundings, noise levels, or the view, can modify the value by an additional 10–20%.
Site-Specific Characteristics in Detail
The individual characteristics of a property are decisive for surcharges or discounts from the standard land value. Here is an overview of important aspects:
Size and Shape: Optimally shaped plots can be up to 10% more valuable.
Topography: Flat terrain is often preferred; slopes can have a positive or negative effect depending on the view and buildability (up to a 15% difference).
Soil Conditions: Load-bearing capacity and any existing contamination are critical and can cause costs exceeding 50,000 EUR.
Degree of Development: Fully developed plots (water, electricity, gas, sewerage, road) are worth up to 25% more than undeveloped ones.
Type and Degree of Building Utilization: The usage determined in the development plan (e.g., residential, commercial) and the permitted floor area ratio (FAR) or site coverage ratio (SCR) are central value factors that can increase the value by over 50%.
Orientation and Sun Exposure: South-facing orientation can increase the value for residential plots by 5–10%.
These factors show that a blanket application of the standard land value rarely reflects the true value, necessitating a detailed analysis.
A professional analysis of land values goes beyond simply reading the numbers. It requires a systematic approach to arrive at a realistic assessment of land value. A detailed analysis of property prices is essential here.
Information sources: Where to find reliable land values
The official land values are determined and published by the expert committees for property values. In most federal states, they are accessible via online portals known as BORIS systems (Land Value Information Systems). Be sure to note the valuation date, as the values are usually updated every two years.
Comparison and adjustment: From guideline value to individual value
The core of the analysis lies in comparing the guideline property with your own property. The following steps are typical:
Understanding characteristics of the guideline property: Record the attributes of the property for which the land value applies (size, layout, type of use).
Identifying discrepancies: Compare your property point by point with the guideline property. Are there differences in size (e.g., over 20% deviation), shape, development status, or buildability?
Applying adjustment factors: For significant deviations, surcharges or discounts must be applied. A smaller, better-shaped property in the same zone may be worth 5-10% more, for instance.
Considering current market developments: Has the valuation date of the land value already been 1–2 years ago? Check whether the market situation has changed since then (e.g., increased demand may justify a 5% surcharge).
These adjustments require experience and market knowledge to avoid misjudgments.
The analysis of property standard values presents several pitfalls that can lead to significant misjudgments of the property's value. Often, values are incorrectly assessed by 10–20%. To avoid this, you should be aware of the following common mistakes:
Blind faith in the published value: The property standard value is merely an average for a zone, not the exact price for your property.
Ignoring property characteristics: Special features such as contaminated sites, preservation orders, or unfavourable layouts are not reflected in the standard value, but can reduce the value by over 30%.
Use of outdated values: Property standard values are typically updated only every two years. In dynamic markets, a one-year-old value can already deviate by 5–10% from the current market situation.
Misinterpretation of the property standard value zone: Is your property located at the edge of a zone or does it have characteristics more similar to the neighbouring zone? This can influence the value by up to 15%.
Insufficient consideration of development status: The value for undeveloped land differs significantly from ready-to-build land (differences of over 50% are possible).
An online value analysis by Auctoa or direct chat with our ImmoGPT can help you avoid these mistakes and obtain an initial informed assessment. This way, you can achieve a more accurate valuation.
The analysis of standard land values is a fundamental component in the comprehensive valuation of real estate. The land value determined in this way is one of several components incorporated into common valuation methods. For example, it serves as a starting point in the cost approach, where it combines with the value of the structural assets to give the total value. The land value also plays a role in the income approach through land value interest. The standard land value is also relevant for the assessment of property tax; our property tax calculator provides an initial indication here. A precise land value assessment, which goes beyond the mere standard land value, can improve the accuracy of the entire property valuation by up to 15%. This underlines the necessity of a careful analysis for well-founded decisions.
At Auctoa, detailed analysis of land reference values is an integral part of our AI-supported real estate assessments and strategic consulting. We utilize current market data and over 100 evaluation factors to precisely adjust the pure land reference value to your specific property. Our algorithms also take into account subtle influencing factors that are often overlooked, allowing us to determine the value up to 20% more accurately than a mere reference value assessment. This enables heirs, owners, and professional investors to make data-driven decisions—whether selling, buying, or optimizing their portfolio. A thorough market analysis for properties is essential in this process. Benefit from a fast, neutral, and precise evaluation. Contact us now without obligation or chat for free with our ImmoGPT to gain initial insights.
The analysis of standard land values is more than just looking up a number; it is an important process for every property owner. A standard land value provides an initial guideline, but only by considering individual property characteristics and current market data can a realistic value assessment be achieved, which can deviate from the pure standard value by up to 20%. Understanding the influencing factors and making careful adjustments protect against poor decisions and help optimise the value of your property. Therefore, a professional analysis of standard land values is an indispensable step for a successful property strategy.
The Federal Statistical Office (Destatis) provides comprehensive tables on residential property prices.
The BORIS system offers access to the official standard land values in Germany as a nationwide information system.
The Federal Statistical Office (Destatis) publishes detailed tables on property purchase values.
The Deutsche Bundesbank provides information on key indicators and developments in the residential property market.
On gesetze-im-internet.de you will find the Real Estate Valuation Ordinance (ImmoWertV 2022), which establishes the legal framework for real estate valuation.
How accurate is the standard land value?
The standard land value is an average value and serves as a guideline. For an accurate valuation, individual characteristics of the property (e.g., size, layout, buildability, micro-location) must be considered, which can lead to deviations of +/- 20% or more.
What should I do if my property significantly differs from the standard property?
In cases of significant deviations (e.g., different size, shape, state of development, buildability), the standard land value must be adjusted with surcharges or deductions. This requires expertise. A professional valuation by Auctoa can provide clarity and determine the value precisely.
What role does the standard land value play in property tax?
The standard land value is an important basis for calculating the new property tax. The tax offices use it to determine the property tax value. A correct analysis and, if necessary, adjustment can therefore be relevant. Our property tax calculator offers an initial point of reference.
How does Auctoa help in analysing standard land values?
Auctoa uses AI-supported methods to precisely analyse standard land values and adapt them to the specific characteristics of your property and the current market situation. This provides you with a well-founded, data-driven valuation that goes beyond the pure standard value. Try our online value analysis.
Are standard land values binding for the selling price?
No, standard land values are not binding for the selling price. They are average values and serve as a guideline. The actual achievable sale price (market value) depends on supply and demand as well as the specific characteristics of the property and can vary significantly.
Where is the legal basis for standard land values anchored?
The legal basis for standard land values is primarily found in § 196 of the Building Code (BauGB). Further details about determination and the required data are regulated in the Ordinance on Real Estate Valuation (ImmoWertV). [2,3]
