Plots
Building land
building land cost per m2
Are you dreaming of owning a home and looking for the perfect plot of land? The cost per square metre of building land is a crucial factor. But how are these prices determined and what hidden costs are lurking? Find the answers in our comprehensive guide. Do you need personal advice? Contact us for a non-binding initial consultation.
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The land development costs per m² strongly depend on the location, development plan, and level of infrastructure. A careful analysis of these factors is crucial for realistic budget planning.
Soil analysis and preliminary building permit are essential to minimise risks and avoid unexpected costs. Investing in these assessments can enable significant savings in the long run.
Professional Advice from legal, tax, and financial advisors, as well as membership in the Property Owners Association, provides valuable support and helps to optimise the land costs per m² in the long term and ensure legal certainty.
The dream of owning a home starts with the plot of land. But what does building land actually cost? The cost of land per m² varies greatly and depends on many factors. This guide helps you understand the prices, identify key influencing factors, and avoid hidden costs. This way, you lay the foundation for your building project on a solid financial basis. Whether for builders or investors, understanding the cost of land per m² is crucial for successful planning and budgeting. This topic also plays an important role in urban planning and development, aiming to create affordable housing and promote sustainable building projects.
What influences the price?
The cost of land depends on various factors. Here is an overview:
Location, location, location: The micro location is crucial. A plot in a quiet residential area with good public transport links and shopping facilities is generally more expensive than a plot in a remote location.
Development plan: The development plan specifies what can be built on the land. Restrictions on building height, number of floors, or roof shape can reduce the value of the plot.
Degree of development: Are all necessary connections (water, sewage, electricity, gas) in place? If not, you should expect additional development costs.
Why is this topic important?
Understanding the cost of land per m² is of great importance to both builders and investors. Builders can realistically plan their budget, and investors can better assess the profitability of a building project. For urban planning and development, knowing the land prices is essential to creating affordable housing and promoting sustainable development. Valuing land is a complex process that takes many factors into account.
The development plan is the be-all and end-all for any building plot. It sets out what can and cannot be built on the land. A detailed understanding of the development plan is therefore essential to accurately assess the land costs per m² and to make the most of your building rights. The information from the development plan helps you to identify the possibilities and limitations of your plot and to adjust your building plans accordingly.
What is a development plan?
A development plan is a legally binding plan that regulates the development of a plot. It is drawn up by the local authority and is binding on all landowners. The legal basis for the development plan can be found in the Building Code (BauGB). Local authority planning and building offices are the central points of contact for all questions relating to the development plan. Here you can view the development plan and seek advice.
Contents of the development plan
The development plan contains detailed specifications on various aspects of development, including:
Building height: Maximum height of the building.
Number of storeys: Allowed number of storeys.
Roof shape: Specifications for the roof shape (e.g. pitched roof, flat roof).
Window orientation: Orientation of the windows.
The development plan also defines the exact buildable area (square metres approved for development). This information is crucial for planning your building project. The development plans are crucial for the buildability of a plot.
Importance for land costs
The development plan has a direct impact on land costs per m². Restrictions in the development plan can reduce the value of the plot, while generous specifications can increase its value. It is therefore important to carefully examine the development plan before purchasing a plot. The development plan can offer both restrictions and opportunities for your building project. A plot with few restrictions and many design possibilities is usually more expensive than a plot with strict regulations. The land register entries provide information about the legal framework of the plot.
Alongside the development plan, the soil report and development costs also play a significant role in calculating the building land costs per m². These factors are often underestimated but can have a considerable impact on your budget. A comprehensive understanding of these aspects helps you avoid hidden cost traps and successfully implement your construction project.
The Soil Report
A soil report is essential to investigate the soil's condition. It provides information on the bearing capacity of the soil, the groundwater level, and potential contaminants. The soil condition directly influences the foundation and basement waterproofing of your house. Poor soil conditions can incur additional costs for special foundation measures. The soil report also reveals possible contaminants and missing utility lines. Contaminants can significantly reduce the building land costs per m² as the remediation of the soil can be very expensive. The soil reports are essential for assessing the buildability.
Development Costs
Development includes all measures required to make a plot buildable. This includes:
Water supply
Sewage disposal
Electricity connection
Gas connection (optional)
District heating (optional)
The development costs are usually included in the plot price if the plot is already developed. However, it is important to verify this before purchasing. The connection to road traffic is generally the responsibility of the property owner. Undeveloped land is usually not economically viable, as development costs can be very high. The development costs can constitute a significant portion of the building land costs.
To ensure you are legally safe, you should definitely check the land register and obtain a preliminary building decision before purchasing a building plot. These measures help you avoid unexpected surprises and correctly assess the cost of building land per m². Legal security is an important step on the path to owning your home.
Checking the Land Register
The land register is a public record where all ownership details and encumbrances of a property are recorded. Before purchasing, you should definitely check the land register to inform yourself about possible encumbrances, mortgages, or neighbour's rights of way. These encumbrances can reduce the value of the property and affect your building plans. The entries in the land register provide information about the legal framework of the property.
The Preliminary Building Decision
A preliminary building decision is an official confirmation of a property's buildability. It is issued by the building regulation office and informs you whether your planned construction project can be realised on the property. Although not as comprehensive as a building permit, the preliminary building decision gives you important planning security. The preliminary building decisions are official confirmations of buildability.
Purchasing a building plot is a complex matter that involves many legal and financial aspects to consider. Therefore, it is advisable to seek professional support from legal, tax, and financial advisors. These experts can help you clarify individual legal and financial questions and accurately assess the land costs per m². The importance of professional advice should not be underestimated.
The Importance of Professional Advice
Legal, tax, and financial advisors can assist you with various aspects of purchasing a property. These include:
Reviewing the purchase contract
Advice on financing issues
Tax aspects of property purchase
It is important to clarify individual legal and financial questions before you sign a purchase contract. The experts can help you identify and minimise risks. Professional advice is essential for making a secure decision.
Purchase Contract and Declaration of Consent
With the purchase contract, it is important to know the difference between the possessor and the owner. The possessor is the one who actually uses the land, while the owner is the one registered in the land register. The transfer of ownership occurs only with the declaration of consent and the entry in the land register. Notarial certification is mandatory to make the purchase contract legally binding. The declaration of consent is an important step in the transfer of ownership.
Not every building plot is the same. There are different types of land, which vary in their characteristics and costs. An overview of the various land qualities and types helps you to better understand the land costs per m² and find the right plot for your construction project. Knowing the different types of land is crucial for making an informed decision.
What makes a plot building land?
A plot becomes building land if it is designated as such in the development plan or considered as building land due to its location in a built-up area. The land reallocation can lead to the creation of new building land from several plots. Ensuring the development of the area is vital, and natural factors must not prevent construction. The land qualities are critical for buildability.
Types of Building Land
There are different types of building land:
Obligatory Building Land: Here, the owner is obliged to build within a specified period.
Temporary Building Land: Here, the building permit is valid only for a specific period.
Ready-to-Build Land: Here, the infrastructure costs are already included and can be transferred to the owner.
The differences between the types of building land have an impact on the land costs per m². Obligatory building land is generally cheaper than ready-to-build land because the owner has a building obligation. The types of building land differ in their characteristics and costs.
As a property owner, you bear a significant responsibility and are liable for damages that arise from your land. Therefore, it is important to be informed about property owner liability and to take out the right insurance policies. This way, you can minimise risks and keep the land costs per m² under control in the long term. Liability and insurance are important aspects for every property owner.
Liability of the Property Owner
As a property owner, you are liable for damages caused by neglect or safety deficiencies on your property. This includes, for example, the obligation to clear snow in winter. If you do not fulfil your snow clearing duty and someone falls and gets injured, you can be held liable. The liability of the property owner is an important aspect.
Recommended Insurances
To protect yourself from the financial consequences of damages, you should take out the following insurances:
Property owner's liability insurance
Household insurance
Accident insurance
Building insurance
These insurances cover various loss events and protect you from high costs. The recommended insurances protect against financial risks.
The Property Owners Association is an advocacy group for property owners. Membership offers you numerous advantages, such as legal, financial, and administrative advice. The association supports you with all matters concerning your property and helps you to optimise the building land costs per m² in the long term. The network of the Property Owners Association is a valuable resource for every property owner.
The benefits of membership
Membership in the Property Owners Association offers you:
Legal, financial, and administrative advice
Template processes and expert advice
Information on current legislative changes
The cost of membership is usually between 40 and 150 euros per year. The benefits of membership usually far outweigh the costs.
Purchasing land is an important decision that should be well considered. Thoroughly inform yourself about the land costs per m², the various influencing factors, and the legal framework. Seek professional support from experts and take advantage of the benefits offered by the landowners' association. This way, you lay the foundation for your construction project on solid ground. Future developments in the land market are difficult to predict, but good preparation helps you make the right decisions. Property valuation is a crucial step in the purchase decision.
Summary of Key Points
Here is an overview of the key points:
Thoroughly inform yourself about the land costs per m².
Carefully examine the development plan and the soil survey.
Seek professional support from experts.
Take advantage of the benefits offered by the landowners' association.
Outlook on Future Developments in the Land Market
Future developments in the land market are difficult to predict. Factors such as demographic trends, interest rate policies, and energy prices play an important role. It is therefore important to monitor the market closely and seek advice from experts. Land prices depend on many factors.
Recommendations for Buyers and Investors
For buyers and investors, it is advisable to thoroughly analyse the land costs per m² and consider the various influencing factors. Good preparation and professional support are crucial for a successful investment. The property investment should be well thought out.
Government grants for energy-efficient construction offer an excellent opportunity to invest in a sustainable and future-proof property. Whether it's a new build or the renovation of an older building, the available subsidy programmes and tax benefits make the construction or purchase of energy-efficient land attractive and financially feasible.
With a variety of subsidy programmes and tax incentives, there are numerous ways to reduce the costs of building or purchasing land. Auctoa offers you comprehensive advice and support in selecting the right plot, meeting technical requirements, navigating the application process, and avoiding potential problems.
By choosing an energy-efficient plot, you are investing in the future of your home. You not only reduce your energy costs and secure a high quality of life, but also make an important contribution to environmental protection.
Now is the perfect time to explore funding opportunities for your project. Contact us today to start your personalised consultation and make the grant application quickly and easily. Register for free and immediately receive an initial estimate for the renovation needs of your property.
ImmobilienScout24 offers comprehensive information and guidance on the topic of building plots, including development plans and soil surveys.
Land register entries provide detailed information about the legal framework and encumbrances on a property.
Development costs can constitute a significant portion of land costs; here you will find detailed information about this.
ImmobilienScout24 informs about the rights and obligations of landowners, including liability and recommended insurance.
ImmobilienScout24 provides an overview of different land qualities and types, which vary in their properties and costs.
Property valuation is an important step in the decision-making process, to realistically assess the value of a property or piece of land.
Land prices depend on many factors; here you will find information on the influencing factors.
What are the key factors influencing the land costs per m²?
The location (micro-location, connectivity), the development plan (constraints, design possibilities), and the development level (availability of connections) are decisive for the land costs per m².
How do I find out if a plot is building land?
A plot is considered building land if it is designated as such in the development plan or if it is considered building land due to its location in a developed area. You can obtain information from the municipality and planning office.
What is a development plan and why is it important?
The development plan is a legally binding plan that regulates how a property can be developed. It specifies what can and cannot be built on the property. A detailed understanding is essential to properly assess the land costs per m².
What is a soil survey and why do I need it?
A soil survey examines the characteristics of the soil and provides information about load-bearing capacity, groundwater levels, and potential contamination. It is important to avoid hidden cost traps and to plan the foundations correctly.
What costs should be considered for development?
Development costs include the costs of water supply, sewage disposal, electricity connection, gas connection (optional), and district heating (optional). These costs are usually included in the purchase price of the plot but should be checked before buying.
What should I check in the land register before buying a building plot?
In the land register, you should check for possible encumbrances, mortgages, or neighbour rights of way. These can reduce the value of the plot and affect your construction plans.
What is a preliminary building permit and why is it important?
A preliminary building permit is an official confirmation of the buildability of a plot. It provides you with information about whether your planned building project can be realised on the plot and offers planning certainty.
What are the benefits of membership in a property owners' association?
Membership in a property owners' association offers legal, financial, and administrative advice, sample cases, and expert advice. The costs are usually between 40 and 150 euros annually.
