Building land

Building Land - Building land refers to parcels of land that are designated or suitable for development under the provisions of public building law. Classification as building land is a key factor in determining a property’s value and is a prerequisite for the issuance of a building permit.

Types of Building Land and Planning Law Principles

Under German building law, building land is divided into three categories, which differ based on the degree of readiness for development. Land with development potential refers to areas that are already designated as future building sites in the municipality’s land use plan but have not yet been specified in a detailed development plan. Development is not yet permitted here, but the expectation of a future designation for building rights is already reflected in the property price. The buyer bears the risk: the designation for building rights may be delayed or may not occur at all.

Land for shell construction is designated as a building area in the zoning plan but has not yet been developed. This means the necessary infrastructure, such as road access, water, sewer, and electrical lines, is still missing. Land ready for construction is significantly cheaper than land ready for building, but it comes with uncertainties regarding development costs and the timeline. Depending on the location and depth of the lines, development costs can range from 20,000 to 80,000 euros or more.

Land ready for construction meets all requirements for immediate development: A binding zoning plan (B-Plan) is in place, development is secured, and the property is suitable in terms of location, shape, and size for the use specified in the zoning plan. The B-Plan bindingly regulates the type and extent of building use (floor area ratio, floor space index, number of stories), the construction method, and the buildable land area.

Not every building lot falls within the scope of a zoning plan. In so-called unplanned inner areas, the permissibility of a construction project is governed by § 34 BauGB. Here, the planned building must blend into the character of the immediate surroundings in terms of the type and extent of building use, the construction method, and the lot area. This assessment requires a case-by-case review by the building authority and involves a certain degree of planning uncertainty.

Development Status and Building Land Prices

The development status of a plot of land has a direct impact on the purchase price and the total costs of a construction project. A fully developed plot has connections to the public road network, the drinking water supply, the sewage system, the power grid, and, as a rule, also to gas and telecommunications lines. Development costs are apportioned among the property owners and can amount to tens of thousands of euros, depending on the scope of the work.

Building land prices vary greatly depending on location, municipality, and region. In sought-after urban locations, prices per square meter for land ready for construction are many times higher than in rural areas. While those who purchase a plot as undeveloped land or land with future development potential pay a lower price, they must factor in the outstanding development costs and the time risk until the land is actually ready for construction.

Building Land and Standard Land Value

The standard land value is a key reference point for determining the price of building land. It is calculated by the relevant appraisal committee based on actual purchase prices and is typically updated every two years. In Bavaria, the Appraisal Committee publishes the standard land values in the Standard Land Value Information System (BORIS Bayern), which is available online. For Nuremberg, the Appraisal Committee of the City of Nuremberg publishes detailed standard values for each district in its annual real estate market report. Important: Standard land values are averages for a reference area-the actual sales price of an individual property may vary significantly depending on the level of development, the shape of the lot, sunlight exposure, and buildability. An appraiser can determine the individual property value.

Practical Tip for Nuremberg and the Metropolitan Region

Building land is a scarce commodity in the city of Nuremberg. Vacant lots in established residential areas such as Erlenstegen, Mögeldorf, or Schmausenbuck are rare and correspondingly expensive-standard land values ranging from 400 to over 700 euros per square meter are not uncommon in premium locations. Anyone looking for a building lot should also consider the surrounding municipalities such as Schwabach, Wendelstein, Feucht, Heroldsberg, or Lauf an der Pegnitz, where prices per square meter are often significantly more moderate while still offering good access to Nuremberg.

We recommend submitting a preliminary building inquiry to the relevant building authority before purchasing a property to obtain a binding clarification of its developability under planning law. This is particularly important for properties under Section 34 of the German Building Code (BauGB) without a zoning plan, as it protects against costly surprises. In addition, you should always check the list of encumbrances and the contaminated sites registry to rule out hidden liabilities. The Nuremberg contaminated sites registry can be viewed at the city’s Environmental Office-in the former industrial areas in the south and southwest of Nuremberg, there are certainly plots of land suspected of being contaminated.

Frequently Asked Questions

What is the difference between building land and a building lot?

Building land is the overarching planning law term for areas designated for development. A building lot, on the other hand, is a specific, cadastrally demarcated parcel of land that meets all the requirements for development-including utility connections and compliance with the zoning plan. Not all building land is automatically a building plot ready for immediate development. Years and significant costs can elapse between a designation as building land in the land use plan and the development of a building plot that is ready for construction. This distinction is crucial when purchasing property, as it significantly influences the purchase price and the risk profile.

How do I find out if my property is classified as building land?

The classification is determined by the land use plan and the zoning plan of the respective municipality. Both plans can usually be viewed at the city planning office. In Nuremberg, many zoning plans are also available via the city’s online geoportal. In addition, the standard land value map provides information on which areas are classified as building land. The building authority provides binding information upon request as part of a preliminary building inquiry-this is the only way to obtain a legally secure and officially binding confirmation of buildability.

What costs can I expect in addition to the purchase price?

In addition to the actual land price, you will incur real estate transfer tax (3.5 percent in Bavaria), notary and land registry fees (approximately 1.5 to 2 percent), and, if applicable, real estate agent fees. Added to this are development costs if the property is not yet fully developed, as well as costs for soil surveys (800-2,500 euros), explosive ordnance detection in high-risk areas, and surveying (500-2,000 euros, depending on the scope of work). For land zoned for future development, a risk discount of 10-30 percent should be factored into the target value once the land is ready for construction. We recommend budgeting for a total cost buffer of at least 15 percent above the purchase price of the property.

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