Are you faced with the complex task of analysing property prices? With a market that shows average square metre prices of around €226 in 2024, but can reach as high as €2,900 in metropolises like Munich, a thorough analysis is crucial. This article provides you with the necessary tools and insights.
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The topic briefly and concisely
The average price of land in Germany in the second quarter of 2024 was €226.34/m², with significant differences between urban areas (up to €1,029.44/m²) and rural areas (from €91.70/m²).
Important factors for land price analysis include location, infrastructure, size, layout, degree of development, soil quality, and buildability.
The determination of price is based on the standard land value (average location value) and the comparative value method (prices of similar plots).
The correct analysis of property prices is crucial for owners, heirs, and investors alike. Whether you want to sell, inherit, or invest – a misjudgement can be costly. This article guides you through the current market data for 2025, explains the key influencing factors, and shows you how to systematically analyse property prices to make informed decisions. Learn how to interpret the standard land value correctly and which regional differences you need to be aware of to understand the true value of your property.
Current Market Situation: A Look at Property Prices 2024/2025
The analysis of land prices begins with an understanding of the current market situation. In the 2nd quarter of 2024, the average price for a plot of land in Germany was €226.34/m². However, this figure masks significant regional differences. In small communities with fewer than 2,000 inhabitants, the average price was only €91.70/m², while in major cities with over 500,000 inhabitants it climbed to €1,029.44/m². A nationwide price decline of around 4% is expected for 2025, with Mecklenburg-Vorpommern and Brandenburg likely to experience the largest decreases. The price range is enormous and requires careful local consideration. In 2023, Hamburg recorded the highest average land prices among the federal states at nearly €1,045.75/m², while Thuringia had the lowest at €77.41/m². A detailed market analysis for land is therefore essential. These figures illustrate the importance of precise, location-based analysis.
Price-determining factors: What really influences the value of your property
Numerous factors influence property prices. The location is probably the most crucial aspect, because the more central a property, the more expensive it tends to be. Infrastructure, including access to schools, nurseries, and public transport, plays an equally significant role. The layout and size of the property are also relevant; a well-laid-out plot of 700 m² can cost €840,000 in a big city, but only €49,000 in rural areas. The degree of development is another important point: A property that is already developed, with access to electricity and water, commands higher prices. However, the soil condition, such as contamination or rocky terrain, can reduce the price, even though it might lead to additional future costs for remediation. Lastly, the buildability – whether and how construction is permitted on the property – substantially influences its value. A thorough assessment of the influencing factors is essential for a realistic price determination. The purchasing power of the inhabitants of a region can also drive prices up.
The following list summarises the key factors:
Location (central vs. peripheral, city vs. countryside)
Infrastructure (transport links, social facilities, shopping opportunities)
Property layout and size
Degree of development (connections to supply networks)
Soil condition (contaminations, soil type)
Buildability (building regulations, potential use and intensity)
Regional economic strength and purchasing power
Supply and demand in the local market
You need to carefully examine these factors when analysing property prices.
Methods for Determining Prices: Understanding Standard Land Value and Comparative Value Method
To analyse land prices, two main methods are primarily used: orientation by the standard land value and the comparative value method. The standard land value is an average price per square metre of undeveloped land in a specific region, known as the standard land value zone. It is determined by expert committees at least every two years and is based on actual purchase prices. The standard land value serves as an important guideline, but it should not be equated with the actual market value. The land value of a specific plot is calculated by multiplying the standard land value by the plot area; a plot with a standard land value of €800/m² and an area of 200 m² would therefore have a land value of €160,000. Information on standard land values is often available online through systems like BORIS-D or from the relevant cadastral and surveying offices. A well-grounded analysis of standard land values is a first step. The comparative value method derives the value of a plot from the sale prices of similar plots in comparable locations that have recently been achieved in the market. This method requires that there are sufficient comparable objects available. Both methods have their merit and are often combined to achieve an accurate valuation.
Regional Price Differences: Where Germany is the Most Expensive and the Cheapest
Property prices in Germany show a strong regional disparity. Metropolitan areas and urban centres have the highest prices, while rural areas often offer significantly cheaper options. Munich tops the list of the most expensive cities, with an average of €2,900/m² for development-ready land. Other major cities like Stuttgart (€1,685/m²), Frankfurt am Main (€1,500/m²), and Cologne (€1,080/m²) follow with similarly high prices. In contrast, rural regions in Thuringia or Saxony have square metre prices of under €100. Even within individual federal states, there are significant fluctuations. In 2023, the average in Berlin was €769/m², in North Rhine-Westphalia €284.60/m², and in Bavaria €356.92/m². The property market trends show that these differences are influenced by factors such as economic strength, population development, and the region's attractiveness. The so-called 'rural exodus', meaning migration away from rural areas, can lead to stagnating or falling prices there, while urban migration continues to drive prices up. Comprehensive knowledge of local pricing trends is therefore essential for accurate analysis.
Here are some examples of average property prices per square metre in major German cities (as of 2024, LBS price index):
Munich: €2,900
Stuttgart: €1,685
Frankfurt a.M.: €1,500
Cologne: €1,080
Hamburg: €950
Berlin: €590
Leipzig: €200
These figures highlight the necessity of analysing property prices always in the specific regional context.
Future Developments: Forecasts and Trends for Property Prices
The forecast for the development of land prices in Germany is complex. While some experts anticipate a nationwide price decline of about 4% in 2025, there are regionally varying prospects. Particularly significant price decreases are predicted for Mecklenburg-Vorpommern (up to -15.5%) and Brandenburg (up to -12.9%). In other regions, such as Upper Franconia in Bavaria, a price increase of 2.5% is expected. In the long term, experts assume an annual price increase of 1-2% until 2035. The demand for building land tends to remain high in urban areas, which supports prices. Factors like the interest rate development, construction costs, and the general shortage of living space will continue to influence the future of land values. The provision of building land conflicts with ecological goals such as avoiding soil sealing, which can further limit supply. Hence, for a well-informed decision, it is important to not only analyse current prices but also keep an eye on future market value analyses and trends. If you are considering how to analyse your land prices, a professional appraisal by Auctoa or a conversation with our ImmoGPT chat can provide valuable data-driven recommendations.
Practical tips for analysis and evaluation: Here's how to proceed
If you want to analyse land prices, a systematic approach is crucial. Start by obtaining the current standard land value for your specific area. This is usually available online via the valuation committee portals or the BORIS-D system. Then research comparable land sales in your immediate vicinity, paying attention to similarities in size, location, and buildability. Document all value-influencing characteristics of your land in detail. These include the exact layout, the degree of development, any potential contamination, or special views. Also consider the infrastructure and socio-economic development of the region. For a comprehensive land valuation, it is often advisable to seek expert advice. A valuation report for your property by an expert or an AI-assisted analysis, such as offered by Auctoa, can provide you with an objective assessment and reveal hidden potentials or risks. Don’t forget additional costs like development or preparation costs, which can affect the value. These can range from €7,000 to €30,000.
Checklist for your land price analysis:
Determine the current standard land value (e.g., via BORIS-D).
Research comparable sales cases in the neighbourhood (size, location, timing).
Record all property characteristics in detail (layout, size, orientation, topography).
Check development status (water, electricity, gas, sewerage, street, internet).
Clarify soil condition and possible contamination (if necessary, soil assessment).
Check building possibilities according to the development plan (type and extent of use).
Evaluate infrastructure and location quality (transport, shopping, schools, leisure).
Consider local market development and demand situation.
A careful analysis of these points helps you determine the realistic value of your land.
grundstuckspreise-analysieren
The analysis of property prices is a complex process requiring an in-depth understanding of the market, influencing factors, and common valuation methods. With average prices ranging from under €100/m² in rural areas to nearly €3,000/m² in prime locations, a blanket valuation is impossible. A data-driven, individual analysis is the only way to achieve a realistic price assessment. By critically examining standard ground values, using comparable values, and considering all specific features of your property, you establish a solid foundation for your decisions. Support from digital tools like the Auctoa ImmoGPT chat or a professional AI-backed valuation can help you manage complexity and realise optimal value. Avoid gut decisions; rely on facts – your financial success depends on it.
Additional useful links
The Federal Statistical Office provides comprehensive information on construction prices and the real estate price index.
Tables on residential property prices are also available at the Federal Statistical Office.
A PDF document from the German Bundestag addresses aspects of property valuation.
BORIS-D is the central point for official land value information in Germany.
The Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) offers insights into housing and real estate markets.
The indicator system of the Deutsche Bundesbank provides data on the housing market.
Statistics on real estate and construction service prices are also available from the Deutsche Bundesbank.
FAQ
What is the difference between the standard land value and the market value of a property?
The standard land value is an average locational value per square metre for a zone. The market value is the actual price that can be achieved for a specific piece of land on the market, taking into account all its individual characteristics. The standard land value is just one of several factors used to determine the market value.
How can Auctoa help me analyze my land prices?
Auctoa offers AI-powered real estate evaluations and the ImmoGPT chat. These tools provide you with a data-driven, objective assessment of your property's value and help you consider all relevant factors.
What are the additional costs incurred when purchasing a property aside from the purchase price?
In addition to the purchase price, typically there are land transfer taxes (3.5% - 6.5% depending on the federal state), notary and land registry fees (approximately 1.5% - 2%), and possibly broker commissions (up to 7.14%). Development costs (€7,000 - €30,000) and preparation costs may also be incurred.
Should I sell my property now or wait for rising prices?
This decision depends on your individual situation and the specific market conditions of your property. Although a slight average price decline is forecast for 2025, regional developments vary significantly. A professional analysis by Auctoa can help you determine the optimal timing.
How significantly does the size of a property affect the price per square metre?
In general, the overall value of a plot increases with its size. However, the price per square metre can sometimes be slightly lower for very large plots compared to smaller, optimally shaped parcels in the same location, as the total investment amount is higher and the target audience might be smaller.
What diminishes the value of a property during analysis?
Contaminants in the soil, an unfavourable shape or poor layout, lack or high cost of development, building restrictions, noise pollution or a poor location and infrastructure can all have a depreciative effect.
