Building code

Construction Standard - The construction standard describes the quality level of a building’s construction and technical specifications. In real estate appraisal and the real estate development industry, it is used as a general term for the entirety of the materials, construction methods, and technical systems employed. The Standard Construction Costs (NHK 2010) distinguish five standard levels, ranging from basic to high-end.

Standard Levels in Valuation Practice

The Asset Value Guideline and the NHK 2010 define five standard levels with corresponding cost factors:

Level	Designation	NHK Factor	Typical Features
1	Basic	0.7-0.9	PVC flooring, electric storage heating, basic plumbing
2	Medium	1.0	Laminate flooring, central heating, standard tiles
3	Upmarket	1.2-1.4	Hardwood flooring, radiant floor heating, triple-pane windows
4	Very upscale	1.5-1.8	Natural stone, smart home, designer fixtures, elevator
5	Luxurious	2.0+	Custom-built, top-quality materials, architect-designed home

Level 2 (mid-range): Solid standard finish - insulated glazing, central heating, tile floors in wet areas, laminate in living areas. The most common standard for post-war buildings up to around the year 2000.

Level 3 (upscale): High-quality finish - triple-pane windows, radiant floor heating, hardwood floors, high-quality tiles, brand-name fixtures. Typical of newer upper-middle-class single-family homes built from 2010 onward.

Level 4 (very upscale): Exclusive finish - natural stone, smart home technology, air conditioning, designer fixtures, elevator, high-quality built-in kitchen as a standard feature. In Nuremberg, this standard is primarily found in penthouse units and villa neighborhoods.

Cost Impact of the Construction Standard - Calculation Example

Single-Family Home in Nuremberg-Mögeldorf, 180 m² Gross Floor Area (GFA):

Standard Level	NHK Factor	GFA Construction Costs	Difference from Level 2
Level 1 (Basic)	0.85	approx. €261,000	−€63,000
Level 2 (medium)	1.00	approx. €324,000	Reference
Level 3 (upscale)	1.30	approx. €421,000	+€97,000
Level 4 (very upscale)	1.60	approx. €518,000	+€194,000

(Based on NHK 2010 for a single-family home, indexed to 2024)

The construction standard directly influences the construction cost in the asset value method: For a single-family home with 180 m² of gross floor area, there is often a difference of €80,000-€150,000 between Level 2 and Level 3. The construction standard is relevant for financing because banks determine the loan-to-value ratio based on the property value-a high construction standard leads to a higher loan-to-value ratio and better financing terms.

Significance in the real estate development business

In the real estate development business, the building specifications define the contractually agreed-upon construction standard. Deviations below this standard entitle the buyer to rectification or a price reduction under Sections 634 and 638 of the German Civil Code (BGB). Vague wording such as “high-quality fixtures” without product specifications is problematic-it leaves the developer room to use inferior materials. We recommend that buyers insist on equivalence clauses and model home tours whenever wording lacks brand specifications.

Construction Standard and Energy Efficiency

In modern valuation practice, the construction standard is closely linked to the energy standard: A building at standard level 3 or 4 typically features high-quality windows (Uw ≤ 0.8 W/m²K), good facade insulation (≥ 20 cm WLG 035), and modern heating technology (heat pump, underfloor heating). This energy efficiency not only affects operating costs but also marketability and the mortgage lending value.

The GEG has raised the minimum requirements for new construction, which has widened the gap between standard and minimum specifications. A new construction minimum standard under the GEG now meets an energy efficiency level that was previously considered high-end-this must be taken into account when classifying older buildings.

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend that sellers in the Nuremberg metropolitan region realistically assess the construction standard of their property and present it transparently in the property listing. Exaggerated claims lead to disappointment during viewings and prolong the time it takes to sell the property. Conversely, buyers should review a developer’s building specifications line by line and clarify any ambiguities-such as “high-quality tiles” without product details-in writing before signing the contract.

In Nuremberg, new-construction apartments typically fall between Standard Levels 2 and 3, while penthouse units in premium locations such as Rechenberg or Südstadt can reach Level 4. For existing properties built between 1960 and 1980, Levels 1-2 are often applicable, which must be taken into account when comparing them to new construction.

Frequently Asked Questions

How can I determine the construction standard of my home?

Systematically compare the materials used and features with the descriptions of the NHK standard levels. Important indicators include: flooring (PVC = Level 1, hardwood/natural stone = Levels 3-4), windows (double-pane = Level 2, triple-pane = Level 3), heating (night storage = Level 1, underfloor heating with heat pump = Level 3-4), plumbing (standard fixtures = Level 2, designer fixtures = Level 4). An expert can determine the construction standard as part of an appraisal or brief assessment-this typically costs 300-800 euros.

Is it worth upgrading the construction standard before selling?

Targeted measures can be worthwhile if they raise the property to a higher standard-such as replacing an outdated oil or gas heating system with a heat pump, installing new windows, or renovating a bathroom with modern fixtures. Individual cosmetic improvements that do not change the overall standard increase the value only marginally. We recommend a cost-benefit analysis with an experienced real estate agent who knows the local market and can realistically assess which measures will actually increase the selling price in the specific location. In prime Nuremberg locations (St. Johannis, Erlenstegen), energy-efficiency measures are more cost-effective than in less desirable outlying areas.

How does the building standard differ from the quality of fixtures and fittings?

The construction standard is the overarching term that encompasses both the structural execution (shell, roof, facade, insulation) and the finishes (interior work, building services). The quality of finishes refers only to the visible interior areas-floors, plumbing, kitchen, fixtures, and doors. A building can have a high construction standard (solid construction, good insulation, modern heating system) yet still feature basic interior finishes. Appraisers evaluate both aspects separately and determine a weighted overall standard-typically placing greater weight on building services than on surface materials.

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