Are you facing the challenge of finding the right plot at a fair price? Searching for land can be complex, but with the right strategy, you can secure your building land. This article shows you how to proceed systematically and avoid cost traps.
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The topic briefly and concisely
Land prices in Germany vary significantly by region, from under €100/m² to over €2,900/m², with the average in 2024 being around €256/m².
Key price factors include location, size, layout, soil condition, and degree of development; ancillary costs (land transfer tax, notary, broker) often amount to 10-15% of the purchase price.
A successful property search combines online research, contact with real estate agents, inquiries at authorities, and the examination of development plans and types of land.
Searching for the ideal plot of land presents a significant challenge for many builders. Given fluctuating prices and regional differences, it's crucial to understand the market and act wisely. Discover here what factors influence land prices, how to identify affordable offers, and which additional costs you must inevitably consider. With our practical tips, you will navigate safely through the process and lay the foundation for your dream home.
Understanding current real estate prices in Germany
The land prices in Germany show significant regional differences. In 2024, the average price for buildable land was around 256 euros per square metre. However, in metropolises like Munich, prices can rise to over 2,900 euros/m², while rural areas in Thuringia or Saxony-Anhalt may be below 100 euros/m². These figures highlight how important an accurate market analysis for land is. The price range is enormous and is influenced by many factors. Early consideration of local conditions is essential for builders to plan realistic budgets.
The development in recent years has shown a significant increase, although a slight nationwide price decline of around 4% is expected for 2025. Nevertheless, in 2024, people paid about 60 per cent more for land than in 2014. This dynamic underscores the necessity of closely monitoring price developments and weighing up the right timing for purchase. Knowing these trends helps you make an informed decision.
Price-Determining Factors: What Affects the Value of Your Property
The price of a property depends on a variety of factors. Location is often the key point; central properties with good access to schools and transport links achieve higher prices. The size of the property also plays a role, with larger plots often having a lower square metre price than very small parcels. An unfavourable layout or a hillside location can, however, reduce the price. For a more detailed assessment, a valuation report for your property is often advisable.
Other important aspects are soil conditions and the degree of development. Contamination in the soil can lower the price but incur high remediation costs. A property that is already developed, meaning it has connections to water, electricity, and sewage, is generally more expensive but saves you future costs and effort, which can range from 20,000 to 50,000 euros. The buildability according to the land-use plan is also a key value factor.
The purchasing power of the residents of a region also influences prices. In economically strong areas with high demand, sellers are often able to command higher prices. These complex interrelationships make a professional analysis of property prices indispensable.
Strategies for Finding Land: 10 Ways to Success
Successfully searching for a property requires a proactive and versatile approach. Here are proven methods to find your building plot:
Start your search early and use a variety of information sources.
Regularly scour online portals and newspaper ads; new offers often appear daily.
Inquire at municipal and city planning offices; they often have land available or know of future development areas.
Engage one or more agents to access their exclusive portfolios.
Contact banks, as they often have their own property offers and can provide financing solutions.
Look through developers who often offer land together with new constructions - caution is advised with reservation agreements here.
Join a builders' consortium to share the costs of larger plots; municipalities often favour these.
Take initiative: walks in desired areas can reveal building gaps, and word of mouth within your network is often effective.
Consider the option of leasehold, where the land is leased rather than bought, reducing the initial investment.
Keep an eye on foreclosure sales, which often offer land below market value; information is available at the district court.
Combining several of these strategies increases your chances of finding the right plot. A careful examination of each potential plot, as described in the guide What to consider when buying land, is essential.
Additional costs when buying property: The often underestimated second rent
In addition to the purchase price, there are various incidental costs when acquiring a property that can often amount to 10% to 15% of the purchase price. These must definitely be included in your budget planning. One of the most significant items is the property transfer tax, which varies between 3.5% and 6.5% of the purchase price depending on the federal state. Notary and land registry costs are also unavoidable and amount to about 1.5% to 2% of the purchase price. Therefore, an accurate calculation of property costs is essential.
If an estate agent is involved, their commission is added, which usually ranges between 3% and 7% of the purchase price and has often been shared since 2020. These costs can quickly amount to several thousand euros. Costs for a soil survey (approx. 0.3% to 0.5% of the construction costs or €1,000 to €2,500) may arise to check the ground conditions and avoid unpleasant surprises later. Surveying costs may also be necessary if boundaries are unclear or when dividing a property.
Do not forget potential development costs if the property is not yet connected to public networks. As previously mentioned, these can be significant. Forward planning and obtaining quotes, for example with the ImmoGPT chat from Auctoa, help to keep these costs under control.
Price negotiation and evaluation: How to secure a fair deal
The stated price for a plot of land is not always set in stone. Good preparation is key to successful price negotiations. Familiarise yourself with the standard land value, which is determined by expert committees and represents an average value. You can often view this online in the BORIS system. Also, use the comparative method, where prices of similar, recently sold plots are considered.
A professional property valuation, like the one offered by Auctoa, provides a neutral and data-driven basis for your negotiations. Knowledge of depreciating factors such as contamination, unfavourable plot layout, or noise pollution can strengthen your negotiating position. The state of development is also an important point: an undeveloped plot should be cheaper, as you will bear the costs for connecting to utility networks. Having a clear idea of the plot price for private construction helps you to stand confidently.
Document all relevant information and be prepared to make compromises. Sometimes taking on certain obligations or a quick transaction can be a reason for a price reduction. The right strategy can save you several percentage points here.
The development plan: What you are allowed to do on your property – and what not
Before purchasing a plot, it is essential to look at the local development plan (B-Plan) of the municipality. This plan legally determines how a plot can be developed. It includes requirements regarding the type of structural use (e.g. residential area, mixed area), the extent of building use (e.g. site occupancy index SOI, floor space index FSI), the building method (open, closed), and the building plot areas that can be developed. The SOI indicates what percentage of the plot area can be developed; an SOI of 0.3 on a 1,000 m² plot allows for development of 300 m².
Disregarding the requirements in the development plan can lead to construction stops or even demolition orders. You will typically find the B-Plan at the building office or urban planning office of your municipality. Sometimes there are also design requirements, such as for roof shape, facade color, or building height. This information is crucial to ensure that your planned construction project can actually be realized. Carrying out an early examination protects against costly planning errors and assists in assessing the building land potential evaluation.
If there is no development plan for an area, the admissibility of a project is determined according to § 34 of the Building Code (BauGB), i.e. it must fit into the characteristics of the surrounding area. In such cases, a preliminary building inquiry with the building authority is often advisable to achieve planning certainty.
bauherren-preis-grundstucke-finden
Not every piece of land labelled as "Grundstück" is immediately suitable for construction. It's important to know the different types of plots to avoid making a bad purchase. Here is an overview:
Areas for agricultural and forestry use (Farmland): Construction is generally not possible or very difficult here.
Development land: There is a certain expectation that the land will become building land in the future, but there is still no legal certainty. The purchase is speculative and it lacks development. Financing through banks is often difficult here.
Raw building land: The local authority has approved its use for construction, but the land is still not developed. You have to bear the development costs of up to 50,000 Euros yourself.
Ready-to-build land: This land is developed and there is a legally valid development plan. You can usually start construction immediately. This is the safest but often also the most expensive option.
The municipal land use plan provides information about the designated uses. Buying development land carries the highest risk, as a building permit is uncertain. For builders, ready-to-build land is the first choice to have planning security. Thoroughly assessing which type of plot suits your needs is crucial.
Financing Land: Important Aspects for Builder-Owners
How can I save when buying property?
You can save by looking in more rural areas or outskirts, choosing an appropriate plot size, avoiding a realtor (if possible), selecting a plot that is already developed to avoid future costs, or considering the possibility of a hereditary building right. Always compare land value indices and negotiate the price.
What is the difference between land value index and actual property price?
The land value index is an average value determined by appraisal committees for a specific zone. It serves as a guideline. The actual property price may differ and depends on the specific characteristics of the property, current market demand, and negotiation skills.
Why is a soil survey important?
A soil survey provides information about soil composition, load-bearing capacity, and potential contamination. It helps to avoid unexpected costs during construction (e.g., for special foundation measures or contamination removal) and is often relevant for bank financing. Costs are usually between 1,000 and 2,500 euros.
What is included in the development plan and why is it important?
The development plan defines how a plot can be built on (type and extent of use, building method, buildable areas, sometimes also design specifications). It is legally binding and must be checked before purchase to ensure your building project is feasible.
Should I buy developed or undeveloped property?
Developed properties are more expensive, as the costs for connections (water, electricity, sewer, etc.) are already included. However, they offer more security and save effort. With undeveloped properties, you must bear the development costs (often 20,000-50,000 euros) yourself and organize the process.
How can Auctoa assist me in property search and evaluation?
Auctoa offers AI-driven real estate assessments and strategic advice. Our ImmoGPT chat can provide initial evaluations and answer questions. A neutral, data-based assessment from Auctoa strengthens your position in price negotiations and provides confidence in your investment decision.
Additional useful links
Statistisches Bundesamt (Destatis) offers publications on purchase values and building land, providing detailed insights into price developments.
Statistisches Bundesamt (Destatis) provides information on price indices that are relevant for analysing construction costs.
Deutsche Bundesbank offers an indicator system for the residential property market, delivering crucial data on market developments.
BORIS.de is the central information system for standard land values in Germany, allowing insights into average property values.
Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR) informs about current developments in the housing and real estate markets.
Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR) regularly publishes reports on real estate economic trends, offering valuable market analyses.
Bundesverband der Deutschen Volksbanken und Raiffeisenbanken (BVR) provides press releases and analyses on the development of the German real estate market.
KfW Research provides comprehensive information and studies on housing construction and financing.
FAQ
How can I save money when buying a property?
You can save by searching in more rural areas or outskirts, choosing an appropriately sized plot, avoiding estate agents (if possible), opting for a developed plot to avoid future costs, or considering the possibility of leasehold. Also, always compare the standard land values and negotiate the price.
What is the difference between the standard land value and the actual property price?
The standard land value is an average value determined by expert committees for a specific zone. It serves as a guide. The actual property price may differ and depends on the specific characteristics of the property, the current market demand, and negotiation skills.
Why is a soil survey important?
A soil survey provides insight into the soil conditions, load-bearing capacity, and potential contamination. It helps prevent unexpected costs during construction (e.g., for special foundation measures or contamination removal) and is often also relevant for bank financing. The costs usually range from 1,000 to 2,500 euros.
What does the development plan say and why is it important?
The development plan stipulates how a property may be developed (type and extent of use, construction method, buildable areas, and sometimes design requirements). It is legally binding and must be checked before purchase to ensure that your construction project is feasible.
Should I buy a developed or undeveloped plot of land?
Developed plots are more expensive because the costs for connections (water, electricity, sewer, etc.) are already included. However, they offer more security and save effort. For undeveloped plots, you must bear the development costs (often €20,000-€50,000) yourself and organize the process.
How can Auctoa assist me with property search and evaluation?
Auctoa offers AI-powered real estate evaluations and strategic consultancy. Our ImmoGPT chat can provide you with initial assessments and clarify questions. A neutral, data-driven evaluation from Auctoa strengthens your position in price negotiations and gives you confidence in your investment decision.
