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Change of use

Term from the field of Land & Development

A change of use occurs when the actual or legally approved use of a building or area is altered-for example, from commercial to residential, from residential to office, or from restaurant to retail. In Germany, a change of use generally requires approval, as building code requirements (fire safety, parking spaces, sound insulation, land use zoning) differ fundamentally depending on the type of use.

When does a change of use require approval?

Whether a change of use requires a building permit depends on the applicable state building code. In Bavaria, the Bavarian Building Code (BayBO) in conjunction with the Federal Building Code (BauNVO) governs which changes require approval. As a general rule: As soon as the new use is subject to different building code requirements than the previous one, approval is required.

Typical changes of use requiring approval:

  • Conversion of commercial space into residential space (and vice versa)
  • Installation of a restaurant or pub in a former retail space
  • Establishment of a medical practice or therapy room in an apartment (with patient traffic)
  • Conversion of a warehouse into a production facility or office
  • Establishment of a nursing home or daycare center in a former residential building
  • Conversion of a single-family home into a multi-family home (creation of additional residential units)

Purely cosmetic changes or changes of use that do not trigger changes in building code requirements, on the other hand, are often exempt from approval. The decisive factor is not the designation of the use, but whether the parameters relevant under building code law (fire load, number of occupants, emissions) change.

Procedures and Requirements

When applying for a change of use in Bavaria, the following documents must generally be submitted to the building authority:

  • Construction drawings (floor plans, sections) indicating the previous and planned use
  • Description of the planned use and the intended intensity of use
  • Fire safety certification, if necessary by a qualified fire safety engineer
  • Proof of parking spaces (if the new use requires additional parking spaces)
  • Proof of sound insulation (for uses involving increased noise pollution)
  • Proof of accessibility (for publicly accessible buildings)

Depending on the area and the type of new use, the authority reviews compliance with the zoning plan and the character of the surrounding area (Section 34 of the German Building Code, BauGB). In Nuremberg, applications for a change of use must be submitted to the City Planning Office or the Building Permit Service. Processing times vary depending on complexity and the case file-in practice, three to twelve months is realistic.

Preliminary Building Inquiry as a Preparatory Tool

Before submitting a formal application for a change of use, we always recommend a preliminary building inquiry (application for a preliminary decision under Art. 71 BayBO). This allows specific questions regarding building regulations to be clarified in advance with binding effect-without having to submit a full building permit application. A positive preliminary building inquiry binds the authority for two years and provides investment security. The effort involved is significantly less than that of a full application.

The preliminary inquiry is indispensable, particularly when determining whether residential use is permitted under planning law (e.g., in an industrial zone). Some industrial zones categorically exclude residential use-the preliminary building inquiry reveals this early on, before significant planning costs are incurred.

Change of Use as a Value Driver and Risk

An approved change of use can significantly increase a property’s value: A space formerly used for commercial purposes that is converted into high-quality residential space yields significantly higher returns in sought-after downtown locations. Conversely, an illegally carried out change of use carries significant risks: The authorities can order demolition, impose fines, and issue a prohibition on use.

Anyone who purchases a property where an unauthorized change of use has already taken place is liable, as the new owner, for regularizing the situation under building law-and may have to finance costly demolition measures. A thorough due diligence review (review of files at the building authority) prior to purchase is therefore essential.

Practical Tip for Property Owners in Nuremberg and Franconia

We regularly support projects in Nuremberg and the metropolitan region where former commercial or warehouse spaces are being repurposed into residential units or offices. The conversion of industrial buildings into loft apartments is an attractive development model in neighborhoods such as Gostenhof, the harbor area, or Gibitzenhofstraße-provided that planning regulations permit it.

We always recommend preliminarily clarifying the possibilities for a change of use with the city planning office before purchasing such a property. While a preliminary building inquiry takes time and money, it protects you from costly mispurchases. We have a strong network of experienced architects and planning firms in the region who can professionally assist with such preliminary inquiries.

Frequently Asked Questions

Do I need a building permit if I want to convert an office into an apartment?

In Bavaria, converting office space into residential space generally requires a permit if the new use is subject to other building or planning regulations. Even if the building is located in a mixed-use zone where residential use is generally permitted, the technical requirements (sound insulation, parking spaces, natural lighting) for residential use must be met. Prior consultation with the city planning office is strongly recommended.

What is a preliminary building inquiry, and how does it help with a change of use?

A preliminary building inquiry (application for a preliminary decision) allows you to clarify specific building and planning law issues in advance-without having to submit a full building permit application. For planned changes of use, it is a useful tool for gaining investment security. The municipality is bound by a positive preliminary decision for two years.

Can I convert a retail space into an apartment if it is located in a mixed-use zone?

In a mixed-use zone (MI) under the BauNVO, both residential use and non-disruptive commercial use are permitted. A conversion from commercial to residential use is generally possible under planning law, but still requires approval-particularly due to fire safety, natural lighting, and parking requirements. In some municipalities, there are additional preservation ordinances for commercial spaces in ground-floor zones (so-called neighborhood protection regulations) that can make residential use more difficult.

What are the costs associated with a change of use?

The costs vary considerably depending on the scope of the project. The administrative fees for the change-of-use application are based on the construction cost value of the project (fee schedule). Added to this are planning, fire safety, and, if applicable, parking space verification costs. For larger renovations, the total costs for planning and approval can quickly exceed 10,000-50,000 euros-an important factor in the profitability calculation.

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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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