Do you own a piece of land and wonder if it is 'ready for construction'? The difference can increase your sales proceeds by up to 50%. This article shows you how to determine the status of your land and make full use of its potential.
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The topic briefly and concisely
A plot of land ready for construction, according to § 3 Abs. 4 ImmoWertV, is immediately buildable and fully developed, which significantly increases its value.
Development costs can range between €23,000 and €35,000, with the municipality able to allocate up to 90% to the owner.
Selling to property developers and obtaining a preliminary building permit can significantly increase the sale price.
Is your plot just an unused area or already a valuable, ready-to-build property? This question is crucial because the building readiness significantly increases the value of your property. According to § 3 Abs. 4 of the Real Estate Valuation Ordinance (ImmoWertV), these are areas that can be built on immediately according to public law regulations and actual conditions. For owners and heirs, this represents an enormous opportunity: A ready-to-build plot is the most attractive category for developers and private builders and generally achieves the highest sales prices. We guide you through the key factors, from the legal definition to development costs and final value increase, so you can make an informed selling decision.
Understanding the Definition of Buildability
A build-ready plot is more than just a piece of land; it is a legally defined and immediately usable investment. According to § 3 Abs. 4 ImmoWertV, immediate buildability is the decisive criterion. This means there is a valid development plan that permits construction, and the plot is fully developed. Development includes connection to the public road network and utility lines such as water, electricity, and sewage. Without these prerequisites, a plot is not considered build-ready but rather as undeveloped land or land reserved for future building, significantly reducing its value. A clear distinction is essential for realistic property valuation. This legal certainty makes a build-ready plot particularly attractive to investors. Next, we will consider how this status concretely affects the value.
Value Drivers: Why Build Readiness Massively Influences the Selling Price
The difference in sales price between a plot ready for construction and an area expected to be developed can exceed 50%. The standard land value, an official average value, serves as an initial point of reference and is listed separately for land ready for construction. In metropolises like Munich, the price for land ready for construction reaches up to €2,900/m², while in rural areas like Thuringia, it can be less than €80/m². This vast range highlights the importance of location and development status. The secured buildability eliminates risks for the buyer, which is directly reflected in the price. A buyer invests in security and saves time, as lengthy approval processes are no longer necessary. Therefore, a professional market analysis for your plot is crucial to determine the exact value. However, before the full value can be realized, development costs must be considered.
Analysis of Development Costs
The conversion of raw land into a ready-to-build plot is associated with significant costs. Development costs include all measures necessary to connect a plot to the public infrastructure. The total costs for an average development often range between 23,000 and 35,000 euros. The municipality may involve property owners with up to 90% of the costs for technical development. These costs are a crucial factor in a buyer's calculation and influence the achievable sales price. Therefore, a plot that has already been developed offers a clear advantage. Here is a typical breakdown of the costs:
Connection to the road network, pavements, and lighting
Connection to the central water supply (approx. 2,000 to 5,000 euros)
Connection to the sewage system
Laying of power lines (approx. 2,000 to 3,000 euros)
Gas and district heating connections (optional, approx. 2,000 to 3,000 euros)
Connection to the telecommunications network (approx. 600 to 800 euros)
These investments are necessary to achieve readiness for construction and maximize value. A clear understanding of these costs is the first step towards strategic sales planning.
Strategies for Maximising the Value of Your Property
To achieve the best possible price for your plot, a proactive strategy is crucial. Selling to a developer can often be more lucrative than to a private individual, as these professional buyers are willing to pay a higher price for immediate availability. A preliminary building inquiry can clarify development possibilities prior to the sale and increase the value by up to 21%. A soil survey that confirms the soil's load-bearing capacity and excludes any contamination is another strong value enhancer. The costs for this are around 1,000 to 2,500 euros but create trust and accelerate the sales decision. With ImmoGPT from Auctoa, you can quickly and data-drivenly analyse initial potentials. A detailed assessment of the building land potential covers all these aspects. Once the value is optimised, the question of the right time to sell arises.
Conclusion: Achieving Optimal Sales Success with Data
A building-ready plot is the premium category among plots of land and, with proper preparation, promises the highest return. According to the official definition by ImmoWertV, full development and legal construction certainty are the key value drivers. The price increase of almost 90% for building land in the last 10 years highlights the enormous potential. As an owner or heir, you should know the status of your land precisely and act strategically. A data-based evaluation, like the one provided by Auctoa, protects you from misjudgements and uncovers hidden potential. Use objective analyses to base your sales decision on a solid foundation. Do not rely on gut feeling when making your decision – use facts.
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Additional useful links
The Umweltbundesamt offers comprehensive information about soil protection and sustainable agriculture.
FAQ
What exactly does 'buildable plot' mean?
A fully developable plot is an area that can be immediately built upon with a building according to public regulations (e.g., a development plan) and actual conditions (secured access).
Who bears the costs for the development?
The development costs are billed by the municipality. It can allocate up to 90% of the costs to the property owner. When selling an undeveloped plot, the buyer usually bears these costs.
Is a ready-to-build plot always more expensive?
Yes, a plot of land ready for construction is generally more expensive than undeveloped land or land expected to be developed, due to the immediate buildability and the investments already made in development. The price advantage for the seller is significant.
How can I increase the value of my property before selling?
You can increase the value by ensuring construction readiness, obtaining a positive preliminary building inquiry, commissioning a soil survey, and freeing the land from any contamination. Clear documentation of all facts increases buyers' confidence.
Is it worth selling to a property developer?
Yes, property developers are often ideal buyers for ready-to-build plots. They specifically search for such areas for their projects and are often willing to pay an attractive price for planning certainty and quick availability.
How does Auctoa help me with the evaluation?
Auctoa uses AI-powered analysis to objectively determine the market value of your property. We consider the development status, standard land values, locational factors, and market trends to provide you with a reliable, data-driven basis for decision-making.
