Are you facing the challenge of determining the current value of your building plot or understanding the price trends for an investment? Building plot prices in Germany exhibit a complex dynamic that requires in-depth knowledge. This article provides you with the necessary data and analyses for 2025.
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The topic briefly and concisely
Building plot prices in Germany vary greatly by region, with average values of around €256/m² (Nov. 2024), but peaks of up to €2,900/m² in Munich and lows of under €100/m² in rural areas of East Germany.
Important factors influencing building plot prices include location, size, level of development, soil condition, and building rights.
Forecasts for 2025 indicate a possible slight easing of the market, with expected price decreases averaging 4% nationwide, though developments are expected to vary significantly by region.
The development of building plot prices continually presents new questions for owners and investors. Is now the right time to sell or buy? How have prices changed over the years and what factors are driving the market? A detailed examination of current data shows that the average price for ready-to-build land in Germany was approximately 256 euros per square metre in November 2024. This article highlights the multifaceted development of building plot prices, analyses regional differences, and provides you with data-driven recommendations to make well-informed decisions.
Current Building Plot Prices: A Detailed Overview for Germany 2024/2025
The landscape of building plot prices in Germany is characterised by significant regional differences. While the nationwide average for development-ready land in November 2024 was around €256 per square metre, there are clear variations in metropolitan and rural areas. For example, a square metre of land for single or two-family houses in a medium residential area cost an average of €200 in 2022.
In major cities with over 500,000 inhabitants, the square metre price rose to an average of €1,029.44 in the second quarter of 2024. In contrast, prices in small communities with fewer than 2,000 inhabitants were just €91.70 per square metre. These figures highlight the necessity of a precise land price analysis. Understanding these ranges is crucial for a realistic assessment of the development of building plot prices.
Regional Price Differences: Where Building Land is Most Expensive and Cheapest
The development of building plot prices shows a clear disparity between various regions of Germany. Leading in prices are metropolises like Munich, where in 2024 up to €2,900 per square metre was demanded. Hamburg (with average prices around €950/m² to €1,045/m²) and Stuttgart (approximately €1,685/m²) are also among the most expensive areas.
Conversely, the lowest building plot prices are primarily found in the eastern federal states and rural regions. In Thuringia, building land could be purchased in 2024 for an average of €77.41/m² to €112/m². Similarly affordable was Saxony-Anhalt with values around €91.66/m² to €119/m². In some rural areas far from the centres, prices even dropped below €20 per square metre. A detailed market analysis for plots is therefore essential. These regional differences have a direct impact on the future of plot values.
Historical Development of Building Plot Prices: A Look at the Last Decades
The development of land prices in Germany in recent years has been characterised by a significant upward trend. Between 2014 and 2024, prices for plots of land increased by an average of around 60 per cent. Looking at the period from 2013 to 2023, there is even a price increase of almost 90 per cent, from an average of 134 euros/m² to over 254 euros/m².
The Germany Atlas recorded a nationwide increase of about 9 per cent per year between 2015 and 2022. According to the Immobilienmarktbericht Deutschland 2023, particularly in high-price regions, there has been an annual increase of around 10 per cent since 2016. This long-term perspective is an important building block to correctly classify current real estate market trends 2024. The analysis of historical data helps to better understand the current development of land prices.
Factors Influencing Land Prices: What Determines the Value of Your Plot
Numerous factors influence the development of plot prices and thus the value of a specific piece of land. A thorough understanding of these aspects is essential for a well-founded evaluation. The key criteria include:
Location: Proximity to urban centres, transport links, and surrounding infrastructure (schools, shopping facilities, doctors) are crucial.
Size and layout of the plot: Larger and well-laid-out plots often achieve higher prices.
Level of development: Fully developed plots (water, electricity, sewage) are more valuable than undeveloped or partially developed areas.
Soil condition: The quality of the soil, potential contamination, or challenging topography can reduce value.
Building rights and usage possibilities: The development plan, site coverage ratio (GRZ), and floor area ratio (GFZ) define the development potential.
Standard land value: This official average value serves as a guideline but does not always reflect the actual market value. More information can be found at Understanding standard land values.
Market situation: The supply and demand ratio in the respective region plays a significant role.
These factors demonstrate how complex land valuation is. A professional analysis, such as the one provided by Auctoa with AI-supported valuations, can bring clarity. The current development of plot prices is significantly shaped by these elements.
Forecast 2025: How will land prices develop?
The forecasts for the development of building plot prices for 2025 are not uniform, but suggest a possible stabilization or even slight corrections in some segments. Some experts anticipate a nationwide price decline of about 4 percent. Areas particularly affected by sharper declines could be Mecklenburg-Vorpommern (East: -15.5%), Brandenburg (Southwest: -12.9%), and Berlin (-11.3%).
On the other hand, in regions such as Upper Franconia in Bavaria, a price increase of 2.5% is expected. In general, since the second half of 2022, there has been a noticeable reluctance to purchase, driven by rising interest rates, higher construction costs, and energy prices. This could dampen the development of building plot prices. For an individual assessment of your building land potential, a current market analysis is crucial. Use the ImmoGPT chat from Auctoa for an initial assessment.
Additional costs when buying land: More than just the price of the plot
When purchasing a building plot, there are additional costs beyond the actual purchase price that must be included in the overall calculation. These incidental costs can significantly affect the investment and should be taken into account when analysing the development of building plot prices. The main incidental costs include:
Property Transfer Tax: This varies depending on the federal state and ranges between 3.5 per cent and 6.5 per cent of the purchase price.
Notary and Land Registry Fees: For the notarisation of the purchase contract and entry in the land register, around 1.0 to 1.5 per cent of the purchase price is usually incurred.
Estate Agent's Commission: If an estate agent is involved, the buyer and seller divide the commission, which is usually 3 to 3.5 per cent of the purchase price plus VAT for the buyer.
Development Costs: If the land is not yet or only partially developed, costs for connection to utility networks (water, electricity, gas, sewage, telecommunications) can range between 20,000 and 50,000 euros.
Preparation Costs: Possible costs for soil surveys, surveying, demolition of existing structures, or the removal of contaminated sites.
These additional expenses are an important aspect in realistically assessing the value appreciation potential of undeveloped plots. The development of building plot prices alone does not provide a complete picture.
bauplatzpreise-entwicklung
Given the dynamic development of land prices, both owners and prospective buyers need clear strategies. For owners considering a sale, an accurate valuation of the property is crucial to achieve the best possible price. Here, a neutral, AI-supported assessment from Auctoa can provide valuable assistance and minimise the risk of misjudgement.
Prospective buyers should consider the following factors in their decision:
Location-critical analysis: Examine not only the current appeal but also the future development potential of the region. The development of land prices is heavily dependent on location.
Weigh size and need: A smaller plot in a better location can be more valuable in the long term than a larger one in a peripheral location. Often, plots under 500 m² are sufficient for a home.
Check development status: The costs for subsequent development can offset the seemingly attractive purchase price of an undeveloped plot.
Utilise negotiating scope: Especially in regions with stagnant or slightly declining prices, there may be room for negotiation.
Sound advice, as offered by Auctoa through data-driven analyses and the ImmoGPT chat, helps you take advantage of the current land price developments and avoid costly mistakes. Contact us now without obligation to discuss your individual situation.
Conclusion: Make informed decisions in a dynamic market
How will the price of building plots develop in my region?
The development of building plot prices is highly dependent on the region. While some experts anticipate a nationwide average decrease of about 4% for 2025, local variations are likely. For an accurate forecast of your region, an individual analysis, such as that offered by Auctoa, is recommended.
What additional costs are incurred when purchasing a building plot?
In addition to the purchase price, you should account for real estate transfer tax (3.5-6.5%), notary and land registry fees (approximately 1-1.5%), possibly broker commission (about 3-3.5% for the buyer), as well as potential development and preparation costs.
Is now a good time to buy or sell building land?
Whether it is a good time depends on your individual circumstances and the specific market conditions in your region. A slight easing of the market could offer opportunities for buyers, while sellers in still desirable locations might achieve good prices. Professional valuation and advice is advisable.
How can I have the value of my plot determined?
For an accurate valuation of your plot, you can rely on various methods, including the comparative value method or orientation by standard land value. Auctoa also offers AI-supported, neutral valuations that take current market data into account.
What impact do interest rates have on building plot prices?
Rising interest rates can dampen the demand for building land, as financing becomes more expensive. This can lead to stabilisation or even falling prices, as partially observed since the second half of 2022.
What is the difference between building land and development-ready land?
Building land is generally intended for development. Development-ready land, on the other hand, is already connected (to roads, water, electricity, etc.) and the legal prerequisites for immediate development are in place.
Additional useful links
Statistisches Bundesamt (Destatis) offers detailed tables on residential property price indices.
Statistisches Bundesamt (Destatis) provides publications and analyses on land purchase values.
Deutscher Bundestag offers a comprehensive document (PDF) on real estate valuation.
BORIS is the national information system for standard land values.
Deutsche Bundesbank presents an indicator system for detailed analysis of the residential property market.
ifo Institute publishes the latest press releases and expert forecasts on global real estate price developments.
Deutsches Institut für Wirtschaftsforschung (DIW Berlin) analyses current trends and forecasts for purchase prices in the housing market.
FAQ
How will the price of building plots in my region develop?
The development of building plot prices is highly dependent on the region. While some experts expect an average nationwide decline of around 4% by 2025, local variations are likely. For an accurate forecast in your area, an individual analysis, such as that offered by Auctoa, is recommended.
What additional costs are incurred when purchasing a building plot?
In addition to the purchase price, you must account for land transfer tax (3.5-6.5%), notary and land registry fees (approx. 1-1.5%), possibly broker commission (approx. 3-3.5% for the buyer), as well as potential development and preparation costs.
Is now a good time to buy or sell building land?
Whether it is a good time depends on your individual situation and the specific market conditions in your region. A slight easing of the market could offer opportunities for buyers, while sellers in still sought-after locations can achieve good prices. Professional evaluation and advice are recommended.
How can I have the value of my property assessed?
For an accurate valuation of your property, you can rely on various methods, including the comparative value method or orientation based on the land value. Auctoa also offers AI-assisted, neutral evaluations that take current market data into account.
What impact do interest rates have on land prices?
Rising interest rates can dampen the demand for building land as financing becomes more expensive. This may lead to a stabilization or even a decrease in prices, as has been partially observed since the second half of 2022.
What is the difference between building land and land ready for construction?
Land designated for development is generally intended for construction. In addition, land ready for building is already connected (access to roads, water, electricity, etc.) and the legal requirements for immediate construction are in place.
