New construction

New Construction - New construction refers to the erection of a completely new building on a plot of land - as opposed to the renovation, modernization, or remodeling of an existing building. New construction encompasses all phases, from planning and obtaining a building permit through to completion, and offers the advantage that the floor plan, energy efficiency standards, and amenities can be designed according to current requirements and individual preferences.

Process and Phases

A new construction project is divided into several phases: Land acquisition and financing, Planning phase (architect, specialist planners, service phases 1-4 according to HOAI), Building permit (building application, review by the building authority), Bidding and awarding (specifications, bids, contract award), construction (shell construction, finishing, building services, exterior landscaping), and acceptance and handover. From initial planning to moving in, the process typically takes 12 to 24 months-depending on the project size and the time required for official processing.

Planning is the most critical phase: errors in the design or construction planning are costly to correct later on. Homeowners should involve their architect throughout the entire project phase and should not skimp on construction supervision. Professional construction supervision (Service Phase 8 according to HOAI) identifies construction defects early on and can prevent additional costs from rework.

Costs and Financing

The costs of a new construction consist of: land costs, construction costs (currently 2,500-4,000 euros/m² of living space for a standard single-family home), and ancillary construction costs (architect, structural engineering, surveying, connection fees, building permit-approx. 15-20% of construction costs). Added to this are ancillary purchase costs for the land (real estate transfer tax, notary, and, if applicable, real estate agent). The total cost for a single-family home with land in the Nuremberg metropolitan region typically ranges from 450,000 to 800,000 euros.

When it comes to financing, we recommend an equity ratio of at least 20-30% of the total costs. KfW subsidy programs such as the Federal Subsidy Program for Efficient Buildings (BEG) offer low-interest loans and repayment subsidies for energy-efficient new construction. Hiring an energy consultant is also worthwhile: Not only does it ensure compliance with subsidy requirements, but it also significantly reduces operating costs in the long term.

New Construction vs. Existing Properties: The Key Differences

With new construction, buyers do not pay a broker’s commission to the developer but bear all planning risks themselves. Existing properties, on the other hand, can be viewed and appraised before purchase-the risk of surprises regarding construction quality is lower. New buildings benefit from modern energy technology, lower operating costs, and long maintenance intervals. On the other hand, existing properties in prime locations often offer lower prices per square meter.

Practical Tip for Homebuilders in Nuremberg

We recommend that homebuilders in the Nuremberg metropolitan area pay particular attention to three points: First-have the property inspected for building site risks before purchasing (building site survey). Second - calculate the total costs realistically and budget a buffer of at least 10% for unforeseen expenses. Third - start the financing process early and explore funding opportunities (KfW, BEG, QNG).

Building lots are scarce in Nuremberg-those who are flexible regarding location and size (e.g., outlying areas such as Katzwang, Kornburg, or Neunhof) can often still find affordable lots. Neighboring municipalities in the greater Nuremberg area, such as Wendelstein, Röthenbach, or Schwarzenbruck, also offer attractive plots at lower prices than the city center, while still providing good access to downtown Nuremberg.

Developer or Custom Build: Which Model Is Right?

Anyone planning a new construction project faces a fundamental decision: a developer project or a custom build with your own architect? When buying from a developer, you purchase a finished property or one yet to be built at a fixed price-the risk of cost overruns is largely borne by the developer. The downside: less individuality, often limited say in materials and floor plans, and the developer earns a cut from every trade.

When managing the project yourself with an architect, the client has maximum design freedom but also bears the full cost risk. Construction delays, subcontractor bankruptcies, or unforeseen site issues can significantly exceed the budget. Anyone choosing this route should hire an experienced architect who takes full responsibility for construction management (Service Phase 8 according to HOAI) and acts as a supervisory authority vis-à-vis the contractors.

Turnkey homes from prefabricated home providers offer an intermediate solution: The provider delivers the building at an agreed fixed price, while the homeowner is responsible for the property and its development. This option is particularly attractive for builders with no construction experience, as the cost risk remains calculable and the construction time is shorter than with conventional solid construction due to prefabrication.

Frequently Asked Questions

Which is cheaper-new construction or buying an existing property and renovating it?

That depends on the condition of the existing building. For properties requiring extensive renovation (new heating system, roof, windows, electrical work, bathrooms), renovation costs can match or exceed new construction costs-while yielding a poorer result. For well-maintained existing properties, purchasing is generally more cost-effective. An individual cost comparison calculation is essential.

What energy standards apply to new construction?

Since 2024, new buildings must meet at least the Efficiency House 55 standard under the Building Energy Act (GEG). For KfW subsidies and the special accelerated depreciation (AfA) under Section 7b of the Income Tax Act (EStG), proof of the QNG seal (Quality Seal for Sustainable Buildings) is required, which goes beyond the GEG standard. Those aiming for the highest subsidy level (KfW Efficiency House 40) must demonstrate particularly high insulation standards and the use of renewable energy sources.

How do I find a building lot in Nuremberg?

Building lots in Nuremberg are offered through real estate portals, real estate agents, the city land office, and occasionally through foreclosure auctions. We recommend inquiring with the City of Nuremberg early on about municipal building lots and also considering neighboring municipalities (Wendelstein, Schwarzenbruck, Röthenbach). Contacting local real estate agents early on increases your chances of securing a plot before it is publicly listed.

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