Looking for the right plot for your business nearby, but concerned about hidden costs or legal hurdles? Successful expansion or establishment depends more than 50% on the right choice of location. This guide shows you how to proceed systematically and avoid bad investments.
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The topic briefly and concisely
A successful property search is based on a data-driven analysis of location factors, building regulations, and total costs, not just on the purchase price.
The development plan is the crucial document; a misinterpretation can lead to the rejection of the building permit and significant losses.
Hidden costs such as development fees and land transfer tax can increase the total investment by 15-20% and must be taken into account from the outset.
Searching for the ideal site for a business is one of the most critical decisions for future success. It is often accompanied by uncertainties: Is the price justified? Does the location meet all logistical requirements? And what legal pitfalls lurk in the development plan? A purely price-focused search neglects the fact that up to 70% of long-term operating costs are location-dependent. We show you how to conduct a 360-degree analysis to find not just a piece of land, but the optimal value creation location for your business.
Strategic Search: Analyse the market and identify potentials
The search for a business property does not begin with viewings, but with a sound market analysis. Online portals provide an initial overview, but strategic selection requires deeper insights. The German commercial real estate market recorded a transaction volume of over 5.9 billion euros in the first quarter of 2025, representing a 7% increase compared to the previous year. This indicates a high level of dynamism, necessitating careful examination of price developments and regional differences. The prices for development-ready land have risen by 64% between 2010 and 2022, highlighting the need for precise valuation. A data-driven systematic market analysis is the first step to weed out overpriced offers. The analysis should combine hard facts such as land reference values and transaction volumes with soft factors like the future development potential of a region. This sets the foundation for location-specific and economically sensible pre-selection.
Evaluating location factors: More than just the address
A low purchase price alone does not make a good location. The quality of a commercial property is determined by a variety of factors, which can influence more than 50% of operational success. A detailed site analysis is therefore essential. Proximity to motorways, ports, or airports can reduce transport costs by up to 15%. The availability of qualified workers in a region is a decisive criterion for 8 out of 10 companies. A comprehensive assessment of the site's quality is crucial before you purchase property and evaluate the location.
You should systematically examine the following criteria:
Transport connections: How quickly are motorways, national roads, and public transport accessible?
Proximity to customers and suppliers: Does the location reduce the distance to your key business partners?
Labour potential: Are there enough qualified professionals in the region?
Digital infrastructure: Is a broadband connection with at least 1 Gbit/s available?
Future development: Are there plans for public or private investments in the region's infrastructure?
This analysis protects against long-term disadvantages that can arise from superficial site selection.
Understanding Construction Law: Correctly Interpreting the Development Plan
The most important document before purchasing commercial land is the development plan. It legally determines how a property may be used, thus preventing later usage conflicts by 99%. The Land Use Ordinance (BauNVO) distinguishes between different types of areas, knowledge of which is crucial. For example, in a purely commercial area (GE), only businesses that do not cause significant disturbances are permitted, whereas in an industrial area (GI), companies with higher emissions are also allowed. An error in examining the development plan can lead to the rejection of the building permit. Therefore, make sure to check if your project complies with the regulations on the type and scale of construction use. Consulting the legal aspects of buying property in this context is essential. Early consultation with the responsible building authority can clear up uncertainties and increase planning security by 100%.
Calculate costs: Uncover all additional expenses
The purchase price often represents only 85-90% of the total investment. Incidental building costs are an essential factor that must be considered in any serious calculation. The real estate transfer tax alone ranges from 3.5% to 6.5% of the purchase price, depending on the federal state. For a purchase price of 500,000 euros, this already amounts to up to 32,500 euros. Development costs for an undeveloped plot can additionally amount to 15,000 to 25,000 euros. A detailed financial strategy for commercial spaces helps to have a clear overview of the total cost burden.
A typical breakdown of additional costs includes:
Real estate transfer tax: 3.5% to 6.5% of the purchase price.
Notary and land registry fees: approximately 1.5% to 2.0%.
Broker’s commission: 3% to 7%, depending on the agreement.
Development costs: Connection to road, water, electricity, and telecommunication, often between 50 and 100 euros per square metre.
Costs for surveys (e.g., soil expertise): 1,000 to 5,000 euros.
Only a complete cost overview enables realistic budget planning and protects against financing gaps.
Conduct Due Diligence: Minimising Risks Before Purchase
Due Diligence is the crucial due diligence check before signing a contract. It identifies potential risks that could significantly reduce the value of a property. A key point is examining the land register for encumbrances and restrictions, such as rights of way or third-party pre-emption rights. A soil report, costing between €1,000 and €5,000, is essential to avoid costly surprises from contamination or inadequate soil load-bearing capacity. Around 15% of construction cost overruns are due to undiscovered soil defects. Hiring an expert to oversee the process, such as how to purchase commercial property correctly, is an investment that pays off. Thorough Due Diligence reduces the risk of a misinvestment by more than 90% and provides a solid basis for the purchase decision.
Conclusion: Using a data-driven strategy to find the optimal business location
The search for a property for businesses nearby is a complex process that goes far beyond mere price negotiation. A successful acquisition is based on a structured approach that includes a detailed market and location analysis, a careful examination of building regulations, and a comprehensive cost calculation. Each of these steps reduces the risk of costly mistakes that can burden business success for years. A well-founded evaluation in advance can increase the return on investment by up to 20%. If you are unsure how to objectively assess the value of a potential property, an AI-supported evaluation by Auctoa or a conversation with our ImmoGPT chat can quickly and accurately provide clarity. Make your location decision not on a whim, but based on valid data.
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Additional useful links
The Statistical Office of Germany offers detailed information on construction prices, real estate price indices, and land purchase values in Germany.
Statista provides a current price index for commercial properties in Germany.
Statista offers a comprehensive overview of Germany as an economic location.
The IHK Munich provides a helpful guide for companies choosing a location.
Wikipedia offers a basic article on the subject of commercial real estate.
The DIHK (Association of German Chambers of Commerce and Industry) publishes a brochure on the commercial areas of the future.
The BBSR (Federal Institute for Research on Building, Urban Affairs and Spatial Development) provides information on the sustainable development of commercial areas.
The KfW provides information on the KfW Business Loan (037/047) for the expansion and consolidation of companies.
The Federal Real Estate Agency provides current real estate offers.
FAQ
Where can I view the development plan for a property?
You can usually view the development plan at the local town planning or building department of the respective municipality. Many municipalities now also offer the plans online for download on their websites.
How important is a soil survey really?
A soil assessment is essential. It provides information about the soil composition, load-bearing capacity, and possible contaminants. Without an assessment, you risk unforeseen costs for foundation adjustments or soil remediation, which could amount to several tens of thousands of euros.
Can I negotiate or circumvent the property transfer tax?
The real estate transfer tax is legally fixed and non-negotiable. An exception exists when purchasing from close relatives in a direct line. In some cases, the tax burden can be reduced by separately purchasing the land and building (in the case of new construction), as the tax then only applies to the land price.
What does 'erschließungsbeitragspflichtig' mean?
This means that the municipality has not yet charged for the initial development (road, sewerage, etc.) and these costs are to be borne by the buyer. The municipality can pass up to 90% of the costs onto the owner, which can represent a significant financial burden.
How long does it take to get planning permission?
The duration varies significantly depending on the federal state and the complexity of the project. On average, you should expect it to take 3 to 6 months, provided all documents are complete and compliant with the development plan. If there are deviations, the process can take considerably longer.
What is the difference between standard land value and market value?
The standard land value is an average value for an area with similar plots and serves as a guideline. The market value (or market price) is the realistic price for a specific plot of land, taking into account individual characteristics such as shape, development, and exact location.
