Building plot prices in Germany showed a slight correction in 2023 for the first time in over a decade. But what does this pause mean for your sales or investment strategy? This article provides you with the crucial figures and forecasts to accurately assess the value of your land.
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The topic briefly and concisely
After a decade of increases, plot prices stabilized in 2023 at a high level, averaging €254/m², a slight decrease from the previous year.
The regional price differences are extreme, ranging from under €70/m² in Saxony-Anhalt to over €2,900/m² in Munich.
A stabilisation is expected for 2024/2025; the limited supply of building land is supporting prices against a significant decline.
Are you faced with the decision of selling or bequeathing a property and wondering if the peak of price development has already passed? After an increase of nearly 90% in the past ten years, average plot prices slightly decreased to €254 per square metre in 2023. However, this figure alone does not paint the full picture. Regional differences of over €2,800 per square metre and new market dynamics require careful analysis. We will show you how to interpret the current data and make informed decisions about your real estate assets.
Market Overview: The Price Development for Building Land in Germany
After a long period of growth, the German market for building land has stabilised. In 2023, the average price for ready-to-build land was €254 per square meter, a slight decrease from the peak value of €265 in 2022. Over a three-year view, prices even fell by 2.1%. Despite this short-term correction, the long-term picture is impressive: prices have risen by approximately 76.6% over a ten-year comparison. This development shows that while the market is consolidating at a high level, it is not collapsing. For owners, this means that the value of their land has remained fundamentally robust. A precise analysis of land prices is now crucial. The phase of rapid, blanket value increases is giving way to a more nuanced assessment, where the specific characteristics of a property again play a significant role.
Regional Price Gap: Where Germany is Most Expensive and Cheapest
The average building plot prices in 2023 mask enormous regional differences. The range extends from under €70 to over €2,900 per square metre. At the top of the list are metropolises like Munich, where up to €2,900 per square metre of building land is paid. Stuttgart, with €1,700/m², and Frankfurt, with €1,685/m², are also among the most expensive locations. In contrast, the cheapest plots can be found in Thuringia (on average €77/m²) and Saxony-Anhalt (€66/m²). These figures highlight an important rule: the value of a plot is significantly determined by its macro location. A professional market analysis for your property takes these regional economic and demand data into account. The following list illustrates the price differences:
Top City: Munich with approximately €2,900/m²
Top Region: Bavaria with an average of €357/m²
Cheapest Federal State: Thuringia with approximately €77/m²
Rural Area (Example): Regions in Saxony-Anhalt with under €70/m²
Even within federal states, there are extreme variations. For instance, in Potsdam, the average cost per square metre is €763, while in the Brandenburg district of Spree-Neiße, it's only €11. These data underscore the necessity of a location-specific evaluation.
Analyzing Value Drivers: Which Factors Determine the Property Price
In addition to the geographical location, specific characteristics determine the value of your property. These factors decide whether you can achieve a price above or below the regional average. A thorough understanding of these criteria is the foundation of any realistic assessment and successful sales negotiation. The main value drivers can be divided into four categories. An official standard land value provides initial clues but does not replace a detailed analysis. The following points are crucial:
Development level: Is the property ready for construction? Connections to water, electricity, and sewage can increase costs by €7,000 to €10,000 and directly influence the value.
Buildability: The municipality’s development plan determines what and how high can be built. A higher floor area ratio (GFZ) means more potential residential or usable space, increasing the value by up to 30%.
Soil condition: A soil survey clarifies the load-bearing capacity and any potential legacy issues. Poor soil conditions can significantly reduce construction costs and thus the property's value.
Shape and orientation: Well-shaped, rectangular plots with southern orientation are more attractive to builders and often achieve prices that are 5-10% higher than irregular or shadowed parcels.
These factors in property valuation are complex. Uncertainties here can lead to misestimations of several tens of thousands of euros. With our ImmoGPT, you can quickly and freely resolve initial questions on this topic.
Forecast 2024/2025: Stabilisation or further price decline?
The question that concerns all property owners: How will land prices develop in the near future? Experts predict a stabilisation by 2025, with some even expecting a slight nationwide price decline of up to 4%. At the same time, the number of property transactions has recently increased again, indicating a market revival. The decisive factor remains the limited supply. In 2024, only around 175,800 building permits were issued, far from the political target of 400,000. This supply shortage acts as a strong buffer against a drastic price drop. Demand for housing, driven by migration and an increasing number of single households, remains high. For you as an owner, this means that panic selling is not appropriate. Instead, strategic planning is required, based on a well-founded valuation report for your property. The current market situation presents opportunities for those who assess the value of their property using data-driven methods and without emotional pressure.
Recommendations for Owners and Heirs
What do the building plot prices of 2023 and the forecasts mean for your specific situation? Whether it's a sale, gift, or development – a neutral, data-driven decision-making basis is now essential. Avoid being guided by general market statements. The average price of land for private construction is just a rough indicator. Your plot has an individual value that depends on dozens of factors. An AI-driven analysis, like the one Auctoa offers, can objectively weigh these factors and give you a clear value assessment. This way, you can avoid losing money in a sale or basing inheritance arrangements on incorrect assumptions. Get in touch now for a non-binding initial assessment. This will create a solid foundation for the future of your assets.
Conclusion: Maximise Property Value with Data Competence
The development of building plot prices in 2023 marks a shift towards a more mature, yet also more complex market. The era of blanket value increases is temporarily over. Instead, the specific location and quality of the individual plot now matter. For owners and heirs, it is therefore crucial to know the true, data-based value of their property. Only with an objective assessment can you make the right strategic decisions and fully exploit the potential of your land. Do not rely on your gut feeling, but on facts.
bauplatz-preise-2023
Additional useful links
The Federal Statistical Office offers detailed data on construction prices and real estate price indices, including tables on the purchase values of plots.
Through the official German portal BORIS, you can access the official standard ground values.
The Deutsche Bundesbank presents its indicator system for the housing market.
An article by the Deutsche Bundesbank highlights the first decline in housing prices in 2022 after a long phase of increases.
The ifo Institute publishes a press release on the expectations of high price increases for real estate worldwide.
The ZIA (Central Real Estate Committee) offers its current spring report on the real estate market.
The BVR (National Association of German Cooperative Banks) provides an economic analysis in a compact format, edition 8-2024.
FAQ
How can I determine the exact value of my property?
The exact value depends on factors such as location, size, layout, buildability, and development. An initial orientation is offered by the official land value. For a precise, market-oriented evaluation, we recommend a data-based analysis, like the one offered by Auctoa, which takes all relevant value-influencing features into account.
Is now a good time to sell a property?
The market has evolved from a pure seller's market to a more differentiated one. Prices remain at a very high level. Selling can be worthwhile if the achievable price aligns with your objectives. A well-founded valuation is crucial in making this decision and determining the optimal time to sell.
What impact does the development plan have on the price?
The development plan is a significant price driver. It determines how the land can be used (e.g., residential, commercial) and to what extent (e.g., number of floors). Generally, the more usable space that can be realized, the higher the property's value. A plot of land without a development plan (in an external area) is often significantly less valuable.
What does 'baureifes Land' mean?
Buildable land means that a plot can be developed immediately according to public regulations and actual conditions. The development (connection to road, water, electricity, sewage) is secured. This is the most valuable stage of a property.
Is it worth buying undeveloped land?
Unpurchased land is cheaper to acquire, but it carries risks and additional costs. Development costs can range from €7,000 to €10,000 or more, depending on the effort involved. Furthermore, building suitability must first be ensured. It may be an option for experienced buyers, but requires careful examination and calculation.
How does Auctoa help me with my decision?
Auctoa offers you a fast, neutral, and AI-supported property valuation. Instead of relying on gut feelings or outdated comparison values, you receive a data-driven analysis that incorporates current market data and all relevant features of your property. This provides you with a reliable foundation for sales, inheritance, or investment decisions.
