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Block development

Term from the field of Land & Development

Block development - Block development (also known as perimeter block development) is an urban planning structure in which buildings are constructed along the property lines of a city block, forming a closed perimeter with a shared inner courtyard. This building style characterizes the Wilhelminian-era districts and historic city centers of major German cities and offers high land efficiency while providing protected interior spaces.

Characteristics and Urban Quality

Perimeter block development is characterized by the following features:

  • Closed street front: The buildings stand on the building lines and form a continuous facade-this creates clear street spaces and an urban appearance
  • Inner courtyard: The area enclosed by the perimeter buildings serves as a communal space-a garden, playground, or parking lot-and is protected from street noise
  • High density: The closed construction style achieves a high floor area ratio, making perimeter block development particularly economical for inner-city locations
  • Mixed use: Typically, commercial and service businesses are located on the ground floors, while residential units are on the upper floors

Advantages and challenges

Advantages: Perimeter block development enables efficient land use, creates sheltered courtyards, reduces noise pollution in courtyard-facing apartments, and generates attractive street spaces. It is considered one of the most sustainable urban development forms, as it facilitates short distances, mixed-use, and a compact settlement structure.

Challenges: Apartments on the courtyard side on the lower floors may suffer from limited natural light. Redensification through adding stories or courtyard development can degrade the quality of life in the inner courtyard. Setback requirements and fire safety regulations limit the building density in the inner areas.

Quality of Living in Perimeter Block Development

In Nuremberg’s Wilhelminian-style blocks, the quality of living varies greatly depending on the unit’s location within the block. Street-facing apartments benefit from more natural light but are more affected by traffic noise-especially on busy streets like Äußere Sulzbacher Straße or Münchener Straße. Apartments facing the courtyard are quieter but are often less bright on the ground floor and first floor, which is reflected in lower rent prices. Corner apartments in perimeter block developments are considered particularly desirable, as they offer two facade orientations and thus more light.

Advantages and Disadvantages of Perimeter Block Development - Comparison with Other Building Types

FeaturePerimeter Block DevelopmentRow HousingDetached Single-Family HomePoint Block
Space efficiencyVery highHighLowVery high
Noise protection (courtyard side)Very goodAverageGoodVariable
LightingVaries (street/courtyard side)Good (east-west orientation)Very goodGood (corners better)
Urban qualityHigh (street space)ModerateLowModerate
Possible floor area ratio1.5-3.0+0.8-1.50.3-0.62.0-5.0+
Typical Nuremberg NeighborhoodsGostenhof, St. Johannis, MaxfeldLangwasser, RöthenbachErlenstegen, GroßreuthInner City Periphery
Renovation CostsHigh (historic facades)MediumVariableMedium

Practical Tip for Property Owners in Nuremberg and Franconia

In Nuremberg, perimeter block development is primarily found in the Wilhelminian-style neighborhoods of Gostenhof, St. Johannis, Maxfeld, and in the Südstadt. We recommend that owners of apartments in perimeter block developments emphasize the location within the block when marketing: apartments facing the courtyard are quieter, while those facing the street offer more light and views. When making investment decisions, it’s worth considering the potential for infill development in the inner courtyard-adding stories or constructing a new building in the rear courtyard can increase the property value of the entire block. For condominium complexes in Wilhelminian-style blocks, pay attention to the status of the maintenance reserve fund-preserving historic facades is expensive and requires proactive reserve funding.

Frequently Asked Questions

Can I develop the inner courtyard of a block of buildings?

Developing the inner courtyard (courtyard development) is only possible if the zoning plan permits it and the required setbacks are maintained. In many Gründerzeit neighborhoods, zoning plans stipulate that inner courtyards must remain open. Courtyard development generally requires an exemption, which the city often handles restrictively due to the desired quality of the inner courtyard. However, in certain Nuremberg neighborhoods facing strong pressure for redensification, courtyard developments have been approved-a preliminary inquiry with the Building Authority will clarify the chances in each individual case.

How does block development affect property value?

Perimeter block development in a prime downtown location typically commands high prices per square meter, as the location is central, the infrastructure is well-established, and demand is high. The orientation (street- or courtyard-facing), the floor level, and the condition of the common areas influence the individual value of the apartments within the block. In prime Nuremberg locations such as the Johannis district or the Maxfeld area, renovated apartments in older buildings within perimeter block developments command prices between 4,500 and 7,000 euros per square meter.

What does perimeter block development mean for the homeowners’ association?

In perimeter block developments with condominiums, owners often share extensive common areas-courtyards, driveways, basements, and facades. Management is typically more complex than in detached residential complexes, and maintenance costs for historic facades and common areas can be substantial. A well-managed homeowners’ association and a sufficient maintenance reserve fund are therefore particularly important. We recommend an annual reserve of at least 1.0-1.5% of the building’s value for older Wilhelminian-style buildings.

The energy efficiency of buildings in perimeter block development is structurally advantageous due to the shared exterior walls between the buildings: interior walls between two adjacent buildings are not exterior walls and lose hardly any heat. This reduces the relevant exterior wall area compared to detached buildings, thereby improving the energy balance per square meter of living space. However, in Nuremberg’s Wilhelminian-style buildings, the exterior walls facing the streets and courtyards are often still without thermal insulation-there is a significant need for renovation here, which is being gradually mandated by the GEG. The challenge with historic buildings lies in the fact that exterior insulation of the historic facade is often not permitted; interior insulation is technically feasible but reduces usable living space and requires careful planning to prevent condensation and mold growth. We take the energy efficiency of perimeter block developments into account during our evaluation and recommend that buyers use the energy performance certificate rating as an initial indicator of the expected renovation costs.

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Important Disclaimer

The information, assessments, and legal notes in this real estate glossary serve solely as general orientation. Despite careful preparation, we assume no liability for the accuracy, completeness, or timeliness of the content. These contents do not replace individual legal or tax advice. We strongly recommend consulting a qualified attorney or tax advisor for specific matters.

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