New development area

A new development area is a previously undeveloped or largely undeveloped area that has been designated in a zoning plan for new construction of residential or commercial properties. Unlike infill development within existing areas, a new development area is created on so-called “greenfield” sites-often on the outskirts of cities or in surrounding municipalities. The legal basis for planning is generally a qualified zoning plan pursuant to Section 30 of the German Building Code (BauGB), which regulates the type and extent of building use.

Legal Basis for Planning

Before a new development area is created, it goes through several planning stages. First, the municipality’s land use plan is amended or supplemented to allow for the desired use in principle. Subsequently, a development plan is drawn up, which specifies the parceling, permissible building types (single-family, duplex, or row houses, multi-story apartment buildings), floor area ratio (FAR), floor space index (FSI), and other parameters.

The development of the new development area-that is, roads, sidewalks, water, sewer, electricity, and, if applicable, district heating-is usually planned by the municipality and passed on to the property owners in the form of development fees. The purchase of a property in a new development area does not always include these costs; buyers should obtain detailed information about this.

The zoning plan also contains regulations regarding roof shape and pitch, eave and ridge heights, permitted materials, and sometimes even the color scheme of the facades. This creates a more uniform townscape but also restricts the design freedom of the builders. Anyone purchasing a plot of land in a new development area should therefore read the zoning plan carefully before commissioning an architectural firm.

Opportunities and Risks When Buying in a New Development Area

Purchasing a plot of land or a new home in a new development area offers various advantages: modern construction, energy-efficient technology meeting current GEG standards, individual design options, and generally no immediate maintenance costs. Additionally, new development areas are often well-planned, featuring wide streets, green spaces, and modern infrastructure.

Risks primarily stem from time delays: it can take years before all buildings are completed and all infrastructure facilities (daycare centers, schools, local amenities, public transportation) are fully available. During the development phase, the living situation may be disrupted by construction sites and a lack of infrastructure. It is also more difficult to assess value appreciation in the initial phase than in established locations.

Another risk is development costs: Sometimes development fees are not billed until years after the property purchase, when the municipality settles the development expenses. Buyers should obtain written confirmation of whether and to what extent further development costs are to be expected.

Financing and Subsidy Options

New construction in new development areas can benefit from various subsidy programs. KfW supports energy-efficient new construction with low-interest loans and repayment subsidies. In Bavaria, there are additional state programs such as the Bavarian Homeownership Support Program. Municipalities may also offer “resident-first” models, in which plots in new development areas are allocated preferentially to local residents-often at below-market rates, but subject to resale restrictions.

Practical Tip for Homeowners in Nuremberg and Franconia

Several new development areas are currently emerging in the Nuremberg metropolitan region, including in Fürth-Süd, Erlangen, and the surrounding counties. Anyone wishing to purchase a plot of land in a new development area should contact the municipality early on to inquire about development costs, the zoning plan, and any local resident regulations.

Especially in the highly sought-after outskirts of Nuremberg-such as Zirndorf, Oberasbach, Stein, or Wendelstein-new residential areas are regularly being developed that are more affordable than Nuremberg’s central city locations, while still offering good access to the A9, A6, and public transportation. We guide property buyers in the region from the initial inquiry through to the notary appointment and are familiar with the projects currently available in the metropolitan area.

Frequently Asked Questions

What is the difference between a new development area and a zoning plan?

A zoning plan is the planning law instrument that regulates the development of an area. A new development area is the actual location for which such a zoning plan is drawn up and implemented. Not every zoning plan leads to a new development area-it can also rezone existing areas.

What additional costs will I incur when purchasing land in a new development area?

In addition to the purchase price of the property, you will incur real estate transfer tax (3.5% in Bavaria), notary fees, and, if applicable, a real estate agent’s commission. On top of that, there are development fees, which may be billed separately by the municipality, as well as the costs for utility connections (water, electricity, gas, telecommunications). These additional costs can amount to 10-20% of the property price.

How long does it take from planning to the point where a new development area is ready for construction?

This depends heavily on the municipality and the planning process. Simple zoning plans can become legally binding in one to two years; larger areas requiring extensive environmental assessments and public participation often take five to ten years. In Bavaria, the simplified zoning plan procedure under Section 13a of the German Building Code (BauGB) offers a faster option in certain cases.

What infrastructure is often missing in new development areas?

During the development phase of a new area, daycare centers, elementary schools, shopping facilities, and public transportation connections are often still under construction or do not exist at all. Families with children, in particular, underestimate this timeframe: it can take five to ten years for a newly developed area to match the infrastructure of an established neighborhood. Those who buy early benefit from lower prices but bear the infrastructure risk. In the Nuremberg metropolitan region, this pattern is exemplified by newer development areas in Stein or Oberasbach: Development was completed quickly, but the school infrastructure has only caught up after a significant delay. We recommend that prospective buyers inquire specifically about municipal plans for daycare centers, schools, and bus routes before purchasing-rather than just reading the developer’s glossy brochures.

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