Are you facing the challenge of understanding the current value of your property or achieving the best price? Property prices depend on numerous factors and vary greatly by region. This article provides you with concrete practical tips and data to influence property prices in your favour.
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The topic briefly and concisely
Land prices vary greatly: from under €100/m² in rural areas to over €2,900/m² in metropolises like Munich.
Important factors affecting value are location, size, layout, degree of development, and soil condition; additional costs can make up to 20% of the purchase price.
Standard land values serve as a guideline but may differ from the actual market value; a forecast for 2025 indicates an average price decrease of 4%.
Determining and influencing property prices presents a complex challenge for many owners, heirs, and investors. Given the dynamic market development, where prices in metropolitan regions like Munich quickly reach €2,900/m², while rural areas sometimes fall below €100/m², sound knowledge is essential. This article provides you with a detailed insight into the mechanisms of the property market and practical tips to achieve your goals, whether it be selling, buying, or simple valuation. Learn how strategic action and understanding the key value drivers can strengthen your position.
Current Property Prices in Germany: An Overview
The land prices in Germany present a heterogeneous picture and vary greatly depending on region and location. While metropolitan areas like Hamburg demand an average of €1,127.89/m² and in Berlin €708.25/m², prices are significantly lower in other federal states. For instance, building land in Saxony-Anhalt costs on average only €45.20/m² and in Thuringia €50.07/m². These figures clearly demonstrate that a general statement about 'the' land price is not possible. Knowledge of local standard land values is therefore a first, important step. These values are determined by expert committees at least every two years and serve as a guideline. However, for precise land value determination, other individual factors are crucial, which will be explored below.
Value-Determining Factors: What Really Determines the Worth of Your Property
In addition to the macro location, meaning the region and city, the micro location is a crucial factor for property prices. This includes the immediate surroundings, infrastructure, transport connections, and social facilities. The condition of development also plays a significant role: Is the property already connected to the utility and disposal network (water, electricity, gas, sewage, roads)? The costs for this can be substantial, often amounting to €5,000 to €15,000. Soil quality is another point; contamination or difficult building ground can lower the value and cause additional costs of €500 to €800 for a soil survey. The layout and buildability of the property are also critical. Unfavorably shaped parcels or legal building restrictions negatively affect the price. A detailed analysis of these factors is essential.
Practice Tip 1: Correctly interpret and use standard land values
Standard land values are average values from past property sales in a zone and are given in €/m². They are publicly accessible, often online via the BORIS systems of the federal states or at local expert committees. Please note that the standard land value is an indicative figure and the actual market value of your property can vary by up to 20%. Individual features such as a special view, a quiet cul-de-sac location, or even noise disturbances are not included here. Nevertheless, they are very helpful for an initial assessment. Use this information to analyse the standard land values and obtain an initial price indication. For an exact appraisal, especially for complex properties, the expertise of a surveyor or an AI-supported valuation, as offered by Auctoa, is recommended.
Practical Tip 2: Calculate the impact of development and preparation costs
The development costs include all measures required to make a plot of land ready for construction. This includes connections to sewage, water, electricity, and gas supplies, as well as access to the road network. Typically, these costs are borne by the owner and can vary significantly depending on the municipality and effort involved, often ranging from €6,000 and significantly more. Additionally, there may be costs for site preparation, for example, if contaminated land (e.g., oil pollution) needs to be removed or if existing tree stands need to be cleared. These costs can significantly affect the plot price. While an undeveloped plot may be cheaper to purchase initially, the subsequent development costs can quickly negate these savings. Therefore, clarify in advance exactly what costs are included in the purchase price or what further costs may arise. A careful planning and legal assessment helps to clarify these aspects.
Particular attention should be paid to the following points regarding development and preparation costs:
Sewage and rainwater connections
Water and electricity supply
Gas and telecommunications connections
Traffic development (road access)
Costs for potential removal of contaminants
Clearing or demolition costs on the property
Fees for building permits and surveys
These costs can quickly add up to 10% to 20% of the pure plot purchase price.
Practical Tip 3: Optimally Assess Plot Size and Layout
The size and shape of a plot are significant value factors. A well-shaped, rectangular plot is generally easier to build on and thus more valuable than a narrow, deep, or irregular parcel. Carefully consider the plot size you actually need. A plot that is too large not only incurs higher acquisition costs but also ongoing expenses (e.g., property tax, maintenance). Sometimes, a smart home design on a smaller, but well-shaped plot might be a better solution than a large but impractical area. Check the local planning regulations to learn about the permitted floor area ratio (FAR) and plot ratio (PR). These metrics provide insight into how much of the plot can be developed and the total available living/usable space. A precise assessment of these steps is crucial.
Practice Tip 4: Assess the situation intelligently – more than just the address
As is well known, location is the most important factor when it comes to property and real estate. But what makes a good location? In addition to the distinction between city (e.g., Munich with an average of €2,900/m²) and countryside (e.g., Thuringia with an average of under €100/m²), many details play a role. These include:
Transport links (public transport, motorways)
Infrastructure (shopping facilities, doctors, schools, nurseries)
Leisure and recreational opportunities
Environmental factors (noise, air quality, green spaces)
Social environment and neighbourhood
Development potential of the area (future construction projects, economic development)
A positive development of these factors can increase the property's value in the long term. Research the market analysis for your property and also consider planned urban development measures. Sometimes a property in an emerging peripheral location can be a better long-term investment than an expensive plot in an already established prime location.
praxis-tips-property-prices
In addition to the pure purchase price, the acquisition of land incurs various incidental costs, which can amount to up to 20% of the purchase price. These include the property purchase tax (depending on the federal state, 3.5% to 6.5% of the purchase price), notary and land registry fees (around 1.5% to 2%), and possibly estate agent's commission (often shared, e.g. 3.57% each including VAT). Costs for a soil report (around €500 - €1,500), surveying fees (around €1,000) or approval fees may also arise. These incidental costs should be included in your budget planning from the outset to avoid financial surprises. A detailed breakdown helps you to keep track and realistically assess the total costs. A property valuation report for your land can provide clarity here.
Forecast and development of property prices: What can we expect?
What are the most important practical tips for determining land prices?
The key tips are: 1. Research and correctly interpret standard land values. 2. Accurately calculate development and preparation costs. 3. Assess the size and shape of the property optimally. 4. Analyse the micro-location and infrastructure in detail. 5. Include all ancillary costs in the budget planning.
How can I increase the value of my land?
An increase in value can be achieved through complete development, clarification of building rights (e.g., through a positive preliminary building decision), improvement of the layout (possibly through the purchase/sale of partial areas), or through a positive development of the surrounding infrastructure. A professional Auctoa valuation can highlight potential opportunities.
Are developed plots always more expensive?
Yes, developed plots generally have a higher purchase price because the costs for connection to utility networks and roads are already included. Undeveloped plots are initially cheaper, but subsequent development costs can be significant and negate the price advantage.
Where can I find reliable data on land prices?
Reliable data is provided by the Bodenrichtwertinformationssysteme (BORIS) of the federal states, the purchase price collections of expert committees, market reports from real estate associations and banks, as well as specialised valuation service providers like Auctoa with AI-supported analyses.
What role does the development plan play in the property price?
The development plan determines how a property can be used and built upon (e.g., type and degree of building use, buildable area). These requirements have a direct impact on the value as they define the development possibilities of the property.
How does Auctoa help me evaluate my land?
Auctoa offers fast, AI-driven, and neutral property valuations. Our ImmoGPT can also answer initial questions and guide you through the valuation process to determine a data-driven and fair market price for your land.
Additional useful links
Statistisches Bundesamt provides data on construction prices, real estate price indices, and land purchase values.
Deutsche Bundesbank offers an indicator system for the residential real estate market.
Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR) provides a dashboard with data and reports on the real estate market.
ZIA (Zentraler Immobilien Ausschuss) supplies market data for the real estate sector.
Bundesministerium der Finanzen answers frequently asked questions regarding the new property tax in Germany.
FAQ
What are the most important practical tips for determining property prices?
The key tips are: 1. Research and correctly interpret standard land values. 2. Accurately calculate development and preparation costs. 3. Optimally assess the size and layout of the plot. 4. Analyze the micro-location and infrastructure in detail. 5. Include all ancillary costs in budget planning.
How can I increase the value of my property?
An increase in value can be achieved through full development, clarification of building rights (e.g., via a positive preliminary building decision), improvement in the layout (possibly through the purchase/sale of partial areas), or through positive development of the surrounding infrastructure. A professional <a href="https://www.auctoa.de/">Auctoa valuation</a> can highlight potential.
Are developed plots becoming increasingly expensive?
Yes, developed plots usually have a higher purchase price because the costs for connection to utility networks and roads are already included. Undeveloped plots are initially cheaper, but the subsequent development costs can be significant and may negate the price advantage.
Where can I find reliable data on land prices?
Reliable data is provided by the land value information systems (BORIS) of the federal states, the purchase price collections of the expert committees, market reports from real estate associations and banks, as well as specialized valuation service providers like Auctoa with AI-supported analyses.
What role does the development plan play in determining the property price?
The development plan determines how a property may be used and built upon (e.g. type and extent of building use, buildable land area). These specifications have a direct impact on the value, as they define the development possibilities of the property.
How does Auctoa help me evaluate my property?
Auctoa offers fast, AI-driven, and impartial property valuations. Our ImmoGPT can also answer initial questions and guide you through the valuation process to determine a data-driven and fair market price for your property.
