Development status

Level of Development - The level of development describes the extent to which a property is equipped with the infrastructure necessary for construction. It indicates whether and to what extent a property has road access, water, sewer service, electricity, gas, and, if applicable, telecommunications. The development status is a key factor in the valuation of a property and significantly determines the remaining costs that will be incurred prior to development.

Levels of Development Status

In the real estate industry, four levels of development are typically distinguished:

1. Land for rough construction (undeveloped):

• The property is located within the zoning plan but is not yet developed
• No road access, no utility connections
• Low property value; significant development costs remain outstanding

2. Ready-to-build land / developed property:

• Full development has been completed or is legally secured
• Road access, water supply, sewer, and electricity available
• Highest land values in this category

3. Partially developed:

• Some development components are available (e.g., road and electricity), others are still missing (e.g., sewer)
• Land value lies between undeveloped land and fully developed land

4. In the outlying area (§ 35 BauGB):

• No zoning plan, no development
• Development permitted only in exceptional cases (privileged projects such as agriculture)
• Development costs are borne entirely by the owner

Comparison of development stages - value, costs, and buildability

Development stage	Utilities available	Buildability	Value vs. fully developed	Out-of-pocket costs (guideline)
Fully developed (land ready for construction)	Road, water, sewer, electricity	Immediate construction possible	Reference (100%)	None
Partially developed	Partially (e.g., road + electricity)	Subject to conditions	70-85%	€10,000-50,000
Land ready for shell construction (in the development plan)	None	After development	50-80%	€20,000-80,000
Outlying area (Section 35 BauGB)	None	Privileged only	<50%	>€100,000 possible

Note: Standard land values (BORIS Bavaria) apply to plots developed without contribution fees. For land ready for construction, discounts must be applied (Section 6 ImmoWertV).

Implications for Valuation and Purchase

The state of development significantly influences the property value:

• A fully developed property is immediately buildable - no further effort required
• For partially developed properties, it must be determined when and at what cost the missing connections will be installed
• Land requiring rough construction is significantly cheaper but entails unpredictable development costs
• The purchase agreement should clearly stipulate who bears any outstanding development fees

Checklist for purchasing land:

• Inquire with the municipal building authority or civil engineering office regarding the status of development and any outstanding fees
• Review the register of encumbrances (could third-party development rights pose an obstacle?)
• Check whether connection to the gas and telecommunications networks is possible and at what cost

Development Status in Real Estate Valuation

The development status is a key factor in land valuation under the Real Estate Valuation Ordinance (ImmoWertV). The Appraisal Committee takes it into account when deriving standard land values: Standard land values generally apply to properties that have been developed without additional fees. For undeveloped land, corresponding discounts are applied to reflect the outstanding development costs.

In practice, this means: A raw land plot for which development costs of 30,000 euros are incurred should not only be cheaper than a fully developed plot by this amount-but also by the uncertainty regarding the exact cost and the timing of development.

Practical Tip for Property Owners in Nuremberg and Franconia

New development areas are constantly emerging in the Nuremberg metropolitan region-for example, in Schwaig, Wendelstein, Schwarzenbruck, or in northern Nuremberg. We recommend that prospective buyers in new development areas include the current state of development and any outstanding development costs as a fixed component of their overall cost calculation.

Especially for properties from private sellers in outlying areas, there are often outstanding connection costs (e.g., home broadband, fiber optic) that can quickly amount to several thousand euros. The Nuremberg Civil Engineering Office and the respective municipal administrations provide information on the current development status upon request. We generally recommend obtaining written confirmation from the municipality regarding the development status before making a purchase offer-this is also important for financing planning with the bank.

Frequently Asked Questions

How can I tell if a property is fully developed?

A property is considered fully developed when all public utilities necessary for construction have actually been installed and are accessible to the property: Road (usable), water supply (connection possible), sewer (connection possible), electricity supply (connection possible). The municipality will confirm the development status in writing upon request.

What does it cost to develop a raw land plot?

Costs vary significantly depending on location, distance to existing infrastructure, and the scope of the work. As a rough estimate for standard development (road, water, sewer, electricity), costs can range from 20,000 to 80,000 euros or more. These costs must be obtained and negotiated before purchasing undeveloped land.

Can I build on an undeveloped plot of land?

Only to a very limited extent. According to Section 30 of the German Building Code (BauGB), a plot of land may only be built on if it is developed. In the case of partially developed land, a building permit may be granted subject to conditions (e.g., construction may only begin after the development is completed). In rural areas (Section 35 BauGB), development is generally prohibited, except for privileged projects.

How does the level of development affect the property price?

Rule of thumb: A fully developed property serves as the benchmark for the standard land value. Based on experience, undeveloped land is 20-50% lower, depending on how concrete the development plans are and how high the outstanding costs are. In sought-after locations in the Nuremberg metropolitan region, undeveloped land can still be expensive because the future increase in value after development is factored into the price.

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