Do you know the true value of your property? The standard land value is a crucial factor, yet it is often misunderstood. Learn how to correctly interpret this value and make optimal use of it for your real estate decisions.
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The topic briefly and concisely
Land value guidelines are official average values for land, determined at least every two years by expert committees based on actual purchase prices (§ 196 BauGB).
Important factors influencing the standard land value include location, state of development, type and extent of use, plot configuration, and degree of infrastructure.
The standard land value is not the market value, but it serves as an important basis for its determination and is relevant for taxes, buying/selling, and financing.
The standard land value of a property is an official metric that indicates the average location value of the land per square metre in a specific area. It is determined by independent Land Valuation Committees at least every two years based on collected purchase prices and serves as an important reference point for buying, selling, inheritance, or for tax assessments. This article precisely explains how standard land values are determined, which factors influence them, and how you can use this information for well-informed decisions without losing sight of the market value. With this knowledge, you will navigate the complex real estate market more confidently.
Basics of Land Value Rates: What You Need to Know
The standard land value is an official average value for land and property, expressed in euros per square metre of land area. Its determination is legally anchored in Section 196 of the Building Code (BauGB). These values are established for what are known as standard land value zones – areas that largely correspond in terms of their type and degree of utilisation. For developed properties, the value is determined as if the land were undeveloped. This ensures a comparable assessment of the pure land value. Knowledge of these fundamentals is the first step towards a reliable property valuation. Regular updates, usually every two years, ensure that the values reflect market developments at least up-to-date. Next, we consider who determines these important values.
Determination of Standard Land Values: A Transparent Process
The committees for property values are responsible for determining the standard land values. These independent bodies consist of experts from various relevant fields. Their main task is to maintain and evaluate a collection of purchase prices. All notaries are obliged to forward copies of all property purchase agreements to the responsible committee. From this collection of actual realized sale prices, the average location value for the respective zone is derived. This process ensures a market-oriented and objective data basis. Publication takes place in the form of land value maps or tables, which are publicly accessible. A detailed analysis of standard land values can provide insights into market trends. But what factors specifically contribute to these average values?
Influencing Factors: What Determines the Standard Ground Value
Numerous factors influence the level of the standard land value for a property. These can be divided into different categories:
Location: The macro and micro location is often the most important factor. This includes transport links (e.g. proximity to motorways or public transport), infrastructure (schools, doctors, shopping facilities within 1-2 km) and the social environment (the area's reputation).
Development status: Is it raw land, planned development land or buildable land? Buildable land typically has the highest value, as it is ready for immediate construction.
Type and extent of use: What type of development is permitted (e.g. residential, commercial)? How high can it be built (floor area ratio, site coverage index)? These specifications from the development plan are crucial.
Plot layout and size: Unfavourably shaped or very small/very large plots may be subject to reductions. Parcels that are optimally usable usually achieve better values.
Soil quality: Contaminations that require remediation can significantly reduce the value. The bearing capacity of the soil also plays a role. Find out more about the assessment of contaminations.
Degree of development: Is the property connected to public networks (water, sewage, electricity, gas, telecommunications)? A fully developed property is typically worth more.
The combination of these factors results in the specific average value for a zone. These factors are also central to an individual assessment of your property. Next, we'll clarify the difference to the actual market value.
Bodenrichtwert vs. Market Value: Understanding the Difference
It is a common misunderstanding to equate the standard land value with the market value of a property. The standard land value is an average from the past, updated at least every two years. In contrast, the market value is the price that could potentially be achieved for the specific property under normal market conditions at the current time (§ 194 BauGB). Therefore, the standard land value is only one of several indicators used to determine the market value. For an individual property valuation report, premiums or discounts are made for special characteristics of the individual plot (e.g., exact location within the zone, specific developability, existing planting, rights, and encumbrances). These can indeed vary by 10-30% from the standard land value. The Property Valuation Directive (ImmoWertV) provides the principles for determining market values. We will show you below how to access the standard land values.
Access to Standard Land Values: How to Inform Yourself
The land value indicators are public and accessible to everyone. There are several ways to access this information:
Online portals of the federal states (BORIS): Most federal states offer their own geoportals, often under the name BORIS (Bodenrichtwertinformationssystem), where the values can be viewed for free. For example, search for "BORIS Bayern" or "BORIS NRW".
BORIS-D: The nationwide portal BORIS-D compiles information from many states and enables a comprehensive search. It provides a good initial overview of land prices.
Offices of the evaluation committees: You can directly contact the office of the responsible evaluation committee, which is usually located at the cadastral or surveying offices. Oral information is often free of charge, while written excerpts may incur fees of 20-50 euros.
Local administrations: Building departments or city planning offices can also often provide information or refer you to the appropriate place.
Using these sources allows you to quickly get an initial assessment. For a precise evaluation that considers all the individual characteristics of your property, a professional analysis by Auctoa or a discussion with our ImmoGPT can be useful. This is especially important when it comes to the market analysis of land. Now to the practical significance of these values.
Relevance of Land Value Indicators: Practical Applications
Base values for land play an important role in various situations for property owners, heirs, and investors. They serve as the basis for the assessment of property tax by the tax office. In cases of inheritance or gifts, they are used to determine the taxable value, which can often mean savings of up to 15% compared to other valuation methods if the base land value is favourable. In the event of a sale or purchase, they provide an initial guide for price negotiations, although the actual selling price can deviate by 10-20%. They are also relevant in cases of divorce for the division of assets or for banks to determine the lending value. Understanding base land values is therefore essential for financial planning. A well-founded building law assessment can provide additional clarity here. But how will these values develop in the future?
bodenrichtwerte-grundstuck
The development of standard land values is influenced by long-term trends such as demographic changes, economic conditions, and interest rate policies. Over the past 10 years, standard land values have significantly increased in many German metropolitan areas and their surroundings, in some cases by over 100%. Political decisions, such as the designation of new building areas or infrastructure projects (e.g., a new commuter rail connection), can also significantly alter values in a region, often by 5-15% within a short period. The increasing digitalisation of data and improved analysis methods of expert committees lead to an ever more accurate reflection of market activity. It is advisable to keep an eye on the development of standard land values for your own region. For a forecast of future property values, a more in-depth analysis is necessary. If you need a quick and data-driven assessment, an evaluation by Auctoa or a chat with our ImmoGPT can provide valuable insights.
Conclusion: Standard Land Values as a Compass in the Real Estate Market
What exactly is the standard land value of a property?
The standard land value is an average location value of the land per square metre for a majority of properties within a defined area (standard land value zone) that largely correspond in their property characteristics. It is determined in accordance with § 196 BauGB.
How often are standard land values updated?
Standard land values are generally determined and published every two years by the property appraisal committees, usually as of the deadline of 31 December.
Can I use the standard land value 1:1 to set my selling price?
No, the standard land value is only a guideline. The actual market value of your property can vary due to individual characteristics (e.g. exact location, layout, vegetation, current market demand). A professional appraisal by Auctoa can provide clarity here.
What role does the standard land value play in property tax?
The standard land value is a crucial basis for calculating the new property tax. The tax offices use this value to determine the property tax value.
Are standard land values uniform nationwide?
No, standard land values vary greatly by region, as they reflect local market conditions. Even within a municipality, there can be significant differences between different zones. The BORIS-D portal provides an overview across different states.
How can Auctoa assist me with questions about the standard land value?
Auctoa offers AI-supported property valuations and strategic advice. We help you interpret the standard land value correctly and determine the market value of your property precisely. Also, use our ImmoGPT for fast answers.
Additional useful links
BORIS-D provides nationwide information on standard land values in Germany.
The Federal Statistical Office (Destatis) offers tables and data on residential property price indices in Germany.
The Federal Statistical Office (Destatis) provides publications on purchase values of building land in Germany.
At Gesetze im Internet, you will find the Ordinance on the Determination of Property Values (ImmoWertV 2022).
BORIS-NRW is the standard land value information system for North Rhine-Westphalia.
The Expert Committee for Property Values in Berlin offers a glossary with explanations of relevant terms related to property value determination.
The German Bundestag provides a document on property taxation and valuation.
FAQ
What exactly is the standard ground value of a property?
The standard land value is an average location value of the land per square meter for a majority of plots within a defined area (standard land value zone), which largely correspond in terms of their property characteristics. It is determined in accordance with § 196 of the German Building Code (BauGB).
How often are standard land value rates updated?
Standard land values are generally determined and published by the Committees of Valuation Experts for Real Estate every two years, usually as of 31st December.
Can I adopt the standard land value directly for setting my sale price?
No, the standard land value is only a guideline. The actual market value of your property can differ due to individual characteristics (e.g., exact location, layout, vegetation, current market demand). A professional appraisal by Auctoa can provide clarity here.
What role does the standard land value play in property tax?
The standard land value is an essential basis for calculating the new property tax. The tax offices use this value to determine the property tax value.
Are standard land values uniform nationwide?
No, standard land values are highly variable between regions since they reflect local market conditions. Even within a municipality, there can be significant differences between various zones. The BORIS-D portal provides a cross-country overview.
How can Auctoa help me with questions about the standard land value?
Auctoa offers AI-powered real estate evaluations and strategic consulting. We help you accurately interpret the standard land value and precisely determine the market value of your property. Also, use our ImmoGPT for quick answers.
