Are you facing the challenge of realistically estimating the costs of your building plot? Given fluctuating prices and regional differences, a sound analysis is crucial. This article provides you with the necessary data and strategies to optimise the price of your private building plot.
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The topic briefly and concisely
The price of a private construction plot is primarily determined by location, development, and buildability; regional differences can exceed €2,800/m².
Additional costs account for 10-15% of the purchase price, with the land transfer tax (3.5-6.5%) making up the largest portion.
An average price decrease of approximately 4% is expected for 2025, which opens up purchasing opportunities with careful market analysis.
The acquisition of a plot of land often represents the largest single item in private construction. Land prices have changed significantly over the past ten years, with increases of up to 60% in many regions of Germany. Accurate knowledge of the current market situation and the factors influencing prices is therefore essential. Learn how to assess the price of private construction land transparently and avoid costs, setting your construction project on a solid financial foundation.
Analyse current trends in land prices
The prices for building land in Germany show a dynamic trend. In 2023, the average price for ready-to-build land was around 218 euros per square metre, a decline following nine years of continuous increases. Previously, in 2022, the average was still 236 euros per square metre. These figures highlight that a precise market analysis for properties is essential. A nationwide price decrease of about 4% is expected for 2025, although regional differences will persist. In metropolises like Munich, prices can remain at around 2,900 €/m², while rural areas in Saxony-Anhalt may show values around 66 €/m². This range underlines the need for a detailed examination.
The price increase of almost 90% over the last 10 years clearly demonstrates the market's volatility. [2] A comprehensive property assessment for private construction helps you correctly interpret these figures. Being aware of the latest developments is crucial for realistic budget planning.
Understanding and Leveraging Regional Price Differences
The regional differences in private building plot prices are significant. While metropolitan areas like Munich (approx. €2,900/m²) or Hamburg (approx. €950/m²) achieve top prices, plots in more rural regions are substantially cheaper. Saxony-Anhalt (approx. €66/m²) and Thuringia (approx. €77/m²) have some of the lowest average prices. [2,4] Even within federal states, there are large fluctuations; for example, prices in the suburbs of major cities can already be 50% lower than in the centre. Therefore, a detailed analysis of the plot prices and their development should be conducted specific to the region.
The following list exemplifies the price ranges in different municipality sizes (as of Q2 2024):
Large cities (>500,000 inhabitants): average €1,029.44/m² [2]
Small municipalities: average €91.70/m² [2]
Urban districts: Median at approx. €135/m² (as of 2018, +36% increase over 5 years) [4]
Rural districts: Median under €100/m² (as of 2018) [4]
In East Germany, prices below €50/m² in mid-range locations are not uncommon. [4] These regional differences offer opportunities if you are flexible in choosing your location. The analysis of standard land values for plots is a first step towards assessment.
Identifying factors influencing property value
Numerous factors determine the final private construction land price. The location is often the most important aspect and includes macro- and microlocation, infrastructure, and proximity to amenities. [5] A plot in a growing city with good transport connections and shopping facilities commands higher prices. The level of development also plays a significant role: Fully developed plots (road, sewage, electricity, water, telecommunications) are up to 62% more expensive than undeveloped ones. [4] The buildability, defined by the development plan (e.g. floor area ratio, site area ratio), is another critical point. [5] A plot that allows for a larger living area is correspondingly more valuable.
Other important factors are:
Size and layout: Optimally shaped plots that allow for good utilisation are more sought after. [2]
Soil condition: Contamination or difficult soil conditions (e.g. rock, high groundwater level) can reduce the value by 10-20%. [246]
Orientation: A south-facing orientation for gardens and living spaces is often preferred and can slightly increase the price. [2]
Legal circumstances: Entries in the land register such as rights of way or monument protection requirements can significantly affect the value. [246]
A building site appraisal for about 0.3-0.5% of construction costs can protect against unpleasant surprises. [3] A detailed examination of all factors for land valuation is essential before purchasing. This helps to determine the fair market value and identify room for negotiation.
Use the standard land value as a guideline
The standard land value is an average location value for the land per square metre, determined by expert committees at least every two years. [3] It is based on actual purchase price collections and serves as an important reference point for assessing the private construction land price. [3] These values are publicly accessible, often online via the portals of the federal states or specific services like BORIS-D. The standard land values are provided for zones with similar usage and value conditions. [4]
It's important to understand that the standard land value is an average value for undeveloped land that is free of development contributions, with typical characteristics. Individual characteristics of your desired property (e.g., special shape, slope, specific encumbrances) can justify deviations of up to 20-30% upwards or downwards. [3] A plot with a standard land value of 300 €/m² and an area of 500 m² would have a pure land value of 150,000 €. A valuation report for your property can take these individual characteristics into account.
The online query of standard land values is free of charge in most federal states. [3] Use this information as a first orientation, but consider other factors for a precise assessment. An Auctoa expert or our ImmoGPT chat can help you correctly interpret the standard land value.
Accurately calculate additional costs when buying property
In addition to the pure purchase price, various incidental costs arise when acquiring a building plot, which can significantly increase the private construction land price. You should definitely include these in your calculation of land costs. Allow for an additional 10-15% of the purchase price for this. [3] The land transfer tax is one of the largest items and varies between federal states from 3.5% (e.g. Bavaria, Saxony) to 6.5% (e.g. Brandenburg, NRW, Saarland, Schleswig-Holstein, Thuringia). [5]
An overview of the most important ancillary costs:
Notary and land registry costs: approx. 1.5 - 2.0% of the purchase price. [5,4]
Broker's commission (if applicable): often shared, usually 2.38% to 3.57% of the purchase price for the buyer. [242]
Surveying costs (if necessary): several hundred to over 2,000 euros, depending on the effort.
Soil survey: approx. 500 - 2,500 euros, depending on scope and plot size (approx. 0.3-0.5% of the construction costs). [3]
Costs for building permit: approx. 0.5 - 1.0% of the total construction cost. [2]
Considerable savings on land transfer tax can be achieved by purchasing the land and building separately (for planned new builds), as the tax is then only applied to the land price. [4] Careful planning of these additional expenses is crucial to avoid financial bottlenecks. Also consider possible favourable financing options for your land.
Forecast 2025: Opportunities in the Current Market Environment
For the year 2025, experts anticipate a slight easing in the real estate market. A nationwide average price drop of about 4% is forecast. [2] Prices could decline more significantly in regions such as Mecklenburg-Vorpommern, Brandenburg, and Berlin. [2] Nevertheless, prices in metropolitan areas like Munich (forecast to remain around €2,900/m²) and Hamburg (forecast around €950/m²) remain high. [2] In the long term, some experts assume a yearly price increase of 1-2% until 2035, highlighting the attractiveness of real estate as an investment. [3]
The reasons for the current developments are diverse: increased interest rates and high construction costs have dampened demand. At the same time, building land, especially in sought-after locations, remains a scarce commodity. The stabilisation of construction interest rates between 3.2% and 3.7% could slightly revive demand. [6] For buyers, this means that 2025 could indeed present opportunities, particularly if they are flexible in choosing a location and closely monitor the market. A professional valuation, as offered by Auctoa, helps you to find the right timing and price for your private property purchase price.
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To optimise the private property land price, a smart strategy is required. Negotiation skills are important; there is often a margin of 5-10%, especially with land that has been on the market for a longer time. Thorough research and knowledge of comparable offerings will strengthen your position. Consider plots with minor imperfections, such as an unfavourable shape, which are often cheaper but can still be well-suited for building. Sometimes purchasing a larger plot and subsequently dividing and reselling a portion can be financially attractive, but requires a careful examination of the legal options (subdivision approval, development plan).
Here are some approaches to reduce costs:
Inspect plots in peripheral locations or surrounding areas: Here, price reductions of up to 50% compared to central locations are possible.
Consider leasehold properties: Here, you pay an annual ground rent instead of a high purchase price, reducing the initial investment.
Pay attention to the development status: Partially developed or undeveloped plots are cheaper, but the development costs need to be precisely calculated (they can amount to 10,000-30,000 euros).
Check for funding opportunities: Some municipalities offer discounted building land for families or certain professional groups.
Appointing an independent appraiser can help you determine the fair value and identify excessive demands. Our experts at Auctoa are happy to support you in fully utilising the potential of your desired plot and achieving the optimal price.
Conclusion: Making Informed Decisions for Your Property Purchase
How can I realistically assess the private construction plot price for my desired plot?
Start with the local standard land value. Then consider specific characteristics such as location, size, shape, level of development, and buildability. Compare current offers of similar plots. For an accurate assessment, a professional analysis like the one offered by Auctoa, or consulting our ImmoGPT, is recommended.
What impact does the level of development have on plot price?
The level of development has a significant impact. Fully developed plots (connected to road, sewage, water, electricity, gas, telecommunications) are considerably more expensive than undeveloped or partially developed plots. The costs for additional development can range, depending on the effort, from 10,000 to 30,000 Euros or more and must be considered when comparing purchase prices.
Can I negotiate the price of the plot?
Yes, in many cases there is room for negotiation, often around 5-10%. You can strengthen your negotiating position with good market knowledge, knowledge of comparable sales prices, and a well-founded evaluation of the plot that highlights potential defects or special features. An independent appraisal can be very helpful in this regard.
Does buying a plot with an existing structure save costs?
Not necessarily. A plot with a structure ready for demolition may be cheaper in purchase price, but you must factor in the significant demolition and disposal costs (often 15,000 - 30,000 Euros for a single-family house). Also, check if there are any heritage protection requirements.
How does Auctoa help me optimize my private construction plot price?
Auctoa offers you an AI-supported, fast, and objective real estate evaluation. Our ImmoGPT chat can answer initial questions and help you understand price-relevant factors. This gives you a solid data foundation for your purchasing decision and price negotiations.
What role does the development plan play in the plot's value?
The development plan is very important. It determines what and how you can build on the plot (e.g., type of use, number of storeys, floor space ratio, area that can be built on). A generous development plan that allows high utilization significantly increases the plot's value.
Additional useful links
The Statistische Bundesamt (Destatis) offers comprehensive publications on the purchase values of building land.
Detailed tables on house and land prices are also available at the Statistische Bundesamt (Destatis).
The Deutsche Bundesbank provides an indicator system for analysing the housing market.
Statistics on property and construction prices can be viewed at the Deutsche Bundesbank.
The official portal BORIS-D offers nationwide information on current standard land values.
Short-term price indicators are available on the website of the Statistische Bundesamt (Destatis).
The Statistische Bundesamt (Destatis) provides the latest press releases on price developments.
FAQ
How can I realistically assess the private construction plot price for my desired plot?
Start with the local standard land value. Then consider specific characteristics such as location, size, layout, level of development, and buildability. Compare current offers for similar plots. For an accurate assessment, we recommend a professional analysis, as offered by Auctoa, or consulting our ImmoGPT.
What impact does the level of development have on the property price?
The level of development has a significant impact. Fully developed plots (connected to roads, sewage, water, electricity, gas, telecommunications) are considerably more expensive than undeveloped or partially developed plots. The costs for subsequent development can, depending on the effort required, range from 10,000 to 30,000 euros or more and need to be considered when comparing purchase prices.
Can I negotiate the property price?
Yes, in many cases there is room for negotiation, often in the range of 5-10%. You can strengthen your negotiating position with good market knowledge, awareness of comparable selling prices, and a well-founded valuation of the property that highlights any potential defects or special features. An independent appraisal can be very helpful in this regard.
Does purchasing a plot with existing buildings save costs?
Not necessarily. A property with an old building ready for demolition may be cheaper in terms of the purchase price, but you must take into account the considerable demolition and disposal costs (often €15,000 - €30,000 for a single-family house). Also, check if there are any preservation orders in place.
How does Auctoa help me optimize the price of my private construction land?
Auctoa offers you an AI-supported, fast and objective real estate valuation. Our ImmoGPT chat can clarify initial questions and help you understand price-relevant factors. This way, you receive a solid data basis for your purchasing decision and price negotiations.
What role does the development plan play in the value of the property?
The development plan is very important. It determines what and how can be built on the property (e.g. type of use, number of floors, floor area ratio, buildable land area). A generous development plan that allows high utilization significantly increases the property's value.
