Dreaming of a house by the lake but afraid of the complexities of development? Developing a waterfront property presents unique challenges, from unclear costs to strict building regulations. This guide will show you how to master the process in 5 steps and maximise the value of your property.
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The topic briefly and concisely
The development of a plot is a prerequisite for a building permit and includes connection to roads, water, sewage, and electricity.
The costs average between €15,000 and €25,000, with the municipality able to pass up to 90% of the technical costs onto the owner.
The process is divided into public development (the responsibility of the municipality) and private development (your responsibility).
A waterfront property is, for many, the epitome of quality of life. However, before construction can begin, development is required – a process often more complex and costly than expected. Incorrect assumptions during planning can blow your budget by tens of thousands of euros and delay the start of construction by months. In this article, you will learn how to systematically plan the development of your waterfront property, what costs will actually come your way, and how to safely navigate legal hurdles from the outset. We provide you with a data-based basis for decision-making, so that your dream of living by the water doesn't turn into a financial nightmare.
Phase 1: Survey and review of the development plan
Do you own a waterfront property? The first step is to clarify the development status. A look at the land value map of your municipality provides information: The designation "ebp" (liable for development contributions) indicates costs may be incurred, while "ebf" (free from development contributions) suggests the land is already developed. The development plan, which you can view at the responsible building authority, is also crucial. This document regulates under § 127 BauGB what is permitted on your property – from the type of building use to specific requirements for waterfront areas. Particularly for waterfront properties, there may be special conditions such as noise protection measures or specific regulations for drainage. Reviewing these documents is the foundation of any realistic planning and cost calculation. Without secured development in accordance with the development plan, no building permit will be issued. This initial analysis protects you from costly misplanning and paves the way for the next steps.
Phase 2: Realistically calculate the development costs
The costs for developing a property are a significant part of the ancillary construction costs and are often underestimated. A distinction is made between public and private development. Public development extends to your property boundary and is organised by the local authority. However, the costs for this are mostly passed on to you. According to the Building Code, the local authority can charge up to 90% of the costs for technical development and 70% for traffic-related facilities such as roads and paths. For an average detached house, expect total costs between €15,000 and €25,000.
The private development costs for the connections on your property are added to this. Here is an overview of average public connection costs:
Electricity connection: €2,000 – €3,000
Water and sewage connection: €2,000 – €5,000
Telecommunications (Internet/Telephone): approx. €1,000
Surveying and soil analysis: €2,500 – €3,800
The private installation from the connection point to the house costs an additional approximately €1,000 per metre. Therefore, an exact cost estimate from your municipality and the utility companies is essential. You can find more on this topic in our article on detailed development costs. These figures form the basis for solid financial planning.
Phase 3: Overcoming legal hurdles and approval procedures
The legal basis for any development in Germany is the Building Code (BauGB). A construction project is only permissible if development is secured, as anchored in sections 30, 34, and 35 of the BauGB. For you as the owner, this means: You must apply to the municipality for public development. The municipality is responsible for the implementation, but you do not have a legal right to immediate development. The duration of this process is a critical factor; it often takes six months or longer for all public measures to be completed.
For private development on your property, you must enter into contracts with utility companies for electricity, water, and telecommunications yourself. A common issue with waterfront properties is additional permits that go beyond normal building regulations, such as water law permits or nature conservation requirements. Clarify early with the Building Authority which specific legal aspects to consider for waterfront properties. Early and transparent communication with the authorities prevents delays and ensures that your project stands on a solid legal foundation.
Phase 4: The procedure for public and private access
The process of development is divided into two distinctly separate areas of responsibility. Firstly, there is public development, which is coordinated by the municipality. This includes all measures up to your property boundary. These include:
Transport connection: Construction or expansion of roads, sidewalks, and public lighting.
Technical infrastructure: Installation of main lines for water, sewage, electricity, and telecommunications in public spaces.
You are the applicant and invoice recipient at this stage. Only when the public development is secured can you begin with private development. This is entirely your responsibility and includes connecting your house to the public networks at your property boundary. The costs for this depend directly on the distance from the house to the street, making the positioning of the building on the property an important financial decision. Good development planning is crucial to keeping costs under control. Coordination between the various utility providers and your construction company is key to a smooth process.
Phase 5: Value enhancement through development and strategic planning
Land development converts raw land into building-ready plots, leading to a significant increase in the value of your property. A fully developed waterfront plot is worth significantly more on the market than an undeveloped one. This increase in value can often more than compensate for the investment in development costs ranging from €15,000 to €25,000. However, a strategic approach is required. Compare the costs of undeveloped land plus development costs with the prices of already building-ready plots in similar locations. Sometimes, purchasing raw land and organizing the development yourself can be a financial advantage.
Uncertain about the current market value of your plot or the potential increase in value? A data-driven property valuation can provide clarity. Auctoa analyses over 100 value-relevant factors to provide you with an objective basis for your decisions. Chat now for free with our ImmoGPT to get an initial assessment and better understand the financial challenges of waterfront properties. This ensures that your investment bears fruit in the long term.
Conclusion: A systematic approach is the key to success
The project "Developing property by the water" is no trivial task, but with the right strategy, it is absolutely manageable. The process requires a careful examination of legal conditions, a detailed cost calculation, and proactive communication with authorities and suppliers. The initial analysis of the development plan and the situation lays the foundation for all further proceedings. By realistically estimating costs and identifying legal hurdles early on, you can avoid costly surprises and delays. Ultimately, a successful development significantly increases the value of your property and paves the way for your dream home in a unique location. A data-driven approach turns a complex challenge into a secure investment in your future.
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Additional useful links
The Federal Ministry for the Environment offers comprehensive information on the Water Resources Act in Germany.
The German Environment Agency provides detailed information on water law.
At Laws on the Internet, you can find the full text of the 2009 Water Resources Act (WHG).
The Federal Statistical Office (Destatis) supplies current data on construction prices and property price indices.
The German Environment Agency also provides information about flood protection law.
FAQ
Can I deduct the development costs from tax?
Yes, the development costs can generally be claimed for tax purposes as a modernisation expense or as part of the construction costs of the building. However, you should always consult a tax advisor for precise information.
How long does it take to develop a property?
The duration is very variable and heavily depends on the workload of the municipality and the companies involved. A period of six months to a year for the entire process is realistic. You can hardly speed up the public development.
What is the difference between land designated for development, raw land, and land ready for construction?
Bauerwartungsland is an area where future development is expected but not yet legally secured. Rohbauland is designated for development in the zoning plan but not yet serviced. Baureifes Land is fully serviced and ready for immediate construction.
Do I always have to pay for the development?
In most cases, yes. If you purchase undeveloped land, you will bear the costs. Look out for the designation 'erschließungsbeitragspflichtig' (ebp). Only with 'erschließungsbeitragsfrei' (ebf) are the costs already settled, which is reflected in the higher purchase price.
What specific challenges are associated with waterfront properties?
For waterfront properties, additional requirements from the Water Management Act or nature conservation laws may apply. Issues such as flood protection, bank reinforcement, and special sewage systems can make planning and costs more complex compared to a standard property.
Can I cover the development costs with my construction financing?
Yes, development costs are considered ancillary building costs and can generally be integrated into the construction financing. Discuss this with your bank at an early stage to plan the loan amount correctly.
