Purchase land: Basics for buyers

In addition, there are plots of land that will certainly not be allowed to be built on even in a few months or years. They must be used for agricultural purposes or they are garden land. You can usually recognize building plots by the fact that they have a higher price than plots that are intended for agricultural use or as garden land.

Preliminary building permit until water, sewage and electricity connection

Usually there is already a positive preliminary building permit and a corresponding infrastructure in the form of connections for water, sewage and electricity. If you would like to receive first-hand information, ask the city or municipality responsible for the property whether it is building land and have this confirmed in writing. Then you are on the safe side if you have bought the land and have submitted a building application for the building you want to build on the land.

Garden land

If you buy a garden with a larger pergola, this does not mean that you may exchange the pergola on that property for a house. Even if it is a solid summer house with a electricity connection, a connection for water and sewage and a possibility of heating in the cold season, this does not mean that you can exchange this house for a home.

Economic use is defined

The economic use of land is specified very precisely by the responsible cities and municipalities. In the past, there have been repeated disappointments about planned construction projects that were initially denied by the city or municipality and later even by a court. For this reason, it is very important to obtain extensive information about the property you intend to buy.

Before buying, find out whether you are allowed to carry out the planned construction project on the shortlisted property. This applies not only to the construction of single-family homes, but also to apartment buildings, which may only be built on plots of land that are designated accordingly.

Purchase land: Private sellers

They can buy a plot from a private vendor. You make the purchase directly with the seller or you decide to use the services of an estate agent. The advantage is that you get professional advice. On your behalf, the real estate agent can find out for which building projects the property you have shortlisted is intended for. He or she can ask the city or municipality which building projects on the property are approved and which are not.

Regulations of the city / municipality must be taken into account

If you purchase a plot of land from a private vendor, you can in most cases realize your building project according to your individual ideas. All you have to do is follow the regulations that have been established for building projects in the city or municipality where the property is located. Within the framework of these regulations, you can decide for yourself how big the house should be, whether you want a cellar and whether you want to build a prefabricated house or a solid house. It is also possible to design the house according to very individual specifications together with an architect, if the land is already in your possession before the planning of the construction project begins.

Purchase land: property developer

Developers acquire larger plots of land or several connected plots of land in order to realize a construction project there. In addition, individual plots of land in very attractive locations are also purchased from a developer. You yourself can often only purchase the land from the developer if you decide to build a house at the same time. The choice is less than if you bought the land from a private seller.

Many property developers work closely with the manufacturers of prefabricated houses and solid houses and only offer their products. However, you have the possibility to select an object from the manufacturer’s program and adapt it to your individual needs. Another advantage of this solution is that you do not have to take care of the building project yourself.

If you wish, the builder will coordinate the entire construction project and hand over your house to you ready for occupancy on the agreed date. The service of the developer includes all permits. Also the construction of a garage or a carport and the creation of the garden can be taken over by the developer.

Further regulations for the building project

In many cities and communities there are regulations that houses may only have a certain size or height. Sometimes the overall picture of the surrounding buildings must be preserved. For them, this means, for example, that they may only build a house with a single-story structure and a pointed roof.

The modern two-storey houses are not allowed in some locations because they could disturb the uniform image of the street. You should also inform yourself about the spatial distances that you must maintain to the neighboring buildings. These guidelines only apply to detached single-family homes, but not to buildings with double houses or terraced houses. In new residential areas, which are built on the outskirts of larger cities, there are often deviations from this rule. However, in the classic development of single-family homes in a residential street, you should bear in mind that the distance between your building and the neighbor must be at least three meters. This applies not only to the main building, but also to garages and carports.

The demolition of dilapidated buildings

If there is an older dilapidated building on the property that you want to demolish, this too is subject to approval. In this context, there may be regulations regarding the protection of historical monuments. You should know these before you decide to buy the property.

Construction site on large plots of land not freely selectable

In addition to the regulations that cities and municipalities issue for building development, there may also be specifications regarding the building site. This is usually only relevant for you if you have purchased a very large plot of land.

Perhaps you do not want to build the house directly on the street, so that you can live more quietly away from the traffic noise. However, if all the other houses in the neighborhood are built directly on the street, you may be given the instruction to put your new house in the run. You will not get a permit for a staggered construction. Clarify also these questions before buying the land. Even if you call building land your property, you must comply with the applicable regulations. As a rule, cities and municipalities cannot be changed in their regulations.

If you build without having obtained a clear permit for the building site you have chosen, in the worst case you could be threatened with demolition or demolition. Don’t let that happen, but take precautions by obtaining all the necessary information before making a purchase decision.

Lukinski not only offers you a variety of plots of land in attractive locations, we will be happy to obtain all the information you need for your planned construction project.

Conclusion: Buy a plot of land, preferably with experts

The purchase of a property should be well considered. Above all, it is important to obtain the permits planned for the construction project in advance. This will protect you from unpleasant surprises, which are often closely related to ignorance of the applicable regulations.

Lukinski offers you various services related to the purchase of land in the federal states of Hesse and Rhineland-Palatinate. This includes obtaining the important information you need to start your construction project successfuly. If you would like advice, please do not hesitate to contact us by phone. We will arrange a personal meeting with you at short notice and introduce you to suitable properties in the region of your choice.

Sell land: drain

In all areas, the location is what counts most, not only when selling your developed or undeveloped property. With sale of an apartment, sale of a house but also when you sell your multi-family house, the location is a central valuation factor for the selling price of your property. Selling privately or “free of charge” and without an agent carries risks and makes the sale as well as the entire transaction (valuation until notary and contract of sale) prone to errors. Selling real estate needs a good network of buyers, often real estate is not presented publicly, but only internally as off market property.

When selling a property, similar questions arise as with a house sale. However, there are also some other points worth mentioning here. With a property it is to be paid attention to whether it concerns building land or building valuation land. In the latter case, the land must first be developed by the respective municipality. Only when there are connections for water, gas, electricity and sewerage, may construction work be done on the property. Building plots are usually more valuable than building land.

A professional exposé and meaningful pictures are the basis for selling a property. By listing the data and photos you establish the first contact to prospective buyers and lay the foundation for requests for viewings. If your description does not contain enough information or if the pictures leave questions unanswered, the interest will be lost or you will have to expect a large amount of individual questions.

Procedure in short form: Pictures until credit check

Another important point is the sales-related documents. Procuring them costs a lot of time, money and nerves. But without the important documents you cannot offer your property, so you cannot leave this part of the organizational tasks out. To simplify the sale and to offer your house with all relevant documents, it is worthwhile to engage an estate agent.

If your property attracts interest, potential clients will be waiting for a quick response and assume that you can be reached by phone and online.

With your assignment to real estate agents, you transfer all tasks from preparation to the sales phase to the conclusion of the contract to an expert who will take care of the brokerage of your property and who will find a suitable buyer for your property.

Foreword – Free tip? Yes!

All my tips in this guide are free of charge for you. As real estate agents we mediate properties starting from 1 million euro Verkerhswert, under the category luxury real estates. We are happy to give you tips and tricks for your sale, free of charge, explained in detail and step by step. Also pay attention to our links, here you will find more detailed information on the individual topics. Should you wish to sell your property with us: Do you know what our unbeatable advantage is? We independently reach more than 250,000 readers per month, which means 3 million people per year. We are independent from common real estate portals and reach a solvent, special target group. In addition, we offer internal buyer groups and investors in our Off Market area, to whom you have no access via usual offers. Read more here: Real estate agents.

Sell land: Built-up & undeveloped

Just like the sale of a house, the value of the land is also determined. As a rule, the municipalities determine the so-called standard land values every two years, which have resulted from the sales of other plots of land. However, these standard land values are not binding for the sale. The location and transport connections of the land also play an important role in pricing. Building plots in sought-after residential areas achieve higher prices. Also those plots of land that are oriented to the south have a higher sales value. Then you have to find a buyer. Nowadays, this usually happens online.

Basic questions when selling

Before going deeper into the subject matter, laws and the like, we first deal with more general questions: How much tax is payable on the sale of real estate? What do you need to sell land? Is it possible to sell land without a notary? Is the sale of land taxable?

Let’s start with potential buyers or interested parties. In the end, they finally decide whether to refuse, accept or even outbid a purchase price.

Checklist: What do buyers want?

When searching for a suitable prospective customer, the following aspects can be taken into account:

• Type of land
• Use possibilities
• Plot size
• Inclination of the property >/li>
• Urban or rural location
• Transport connections

Use options: Building land, field or forest land

The nature of the property also determines its possible uses. Is it building land, agricultural land or forest land. The size of the land is usually given in square meters. In the case of large agricultural areas, hectare specifications are common. The slope of the land is meant by the gradient of the land. This is especially the case with slopes.

Plots of land located in cities offer different possibilities of use than plots of land in rural areas. This is especially true for the type of development. In addition, transport connections also play an important role. It is of primary importance mainly for building sites or commercial properties.

Arable land or built-up area in the city center:

Visualization: new construction project after sale.

Checklist: Prepare land sale

Selling a property in the hectic of everyday life is quite demanding: planning and thoughts as well as discussions, as you will see in the next two checklists for preparation in house selling.

Owner questions before the sale

Time expenditure, appointments, creditworthiness and inspection. As a real estate agent, you know how much work is involved in selling a property.

Here it is particularly about experience in real estate trade, in order to avoid risks and errors in the house sale in the apron.

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The company is also actively involved in marketing the land. The right platform must be found or not, keyword off market real estate. In addition there is the time planning for the sales, from preparation over advertisements, photos, portals, answering prospective customer inquiries, date arrangement for inspection, examination of the soil quality of the potenziellen buyers or investors, purchase price negotiations, sales contract, taxes and much more besides.

9 simple steps for selling a house:

1. How well do you personally know about the sale of houses?
2. Have you sold a house before?
3. Can you create a meaningful advertisement (online and print)?
4. How do you rate your negotiating skills in local pairings?
5. Would you like to let any unknown person into your property?
6. Do you want everyone to know about your sales intentions? Tip: Our Off Market Real Estate
7. Are you ready to deal with the legal requirements necessary for the sale of the house?
8. Are you willing to take over the time and work involved in marketing your house yourself?

Tip! Buyer network and investors

One reason why many decide to use a real estate agent is, besides risk minimization, the buyer network. Particularly with properties, we recommend that you market your property not only regionally!

Real estate investors are looking for interesting objects, including in particular plots in sought-after locations, but also in locations with development potential.

Negotiations will be more intensive, but the profit from the sale of your property can increase accordingly, worthwhile.

What is my property worth?

This question is at the very beginning. To publish an offer, you need a price for the land. But determining the offer price is not that easy. In addition to the basic material value of the property (if your property is developed), other factors are also included in the selling price.

The market value determination as the foundation of the sale

In this respect, a valuation is the focus and lays the foundation for a price that corresponds to the object, the storage-relevant information and the infrastructural embedding.

Based on the determined market value, you can rule out the possibility of overvaluing the property or advertising it at a price that is below the real value.

Due to the rising real estate prices, you should have the valuation carried out directly before the sale and refer to information on the market value that is not known to you and that dates back several years.

Smooth processing of the property sale

Your advertisement is published and generates interest. Now the sale of the property enters a phase in which perfect organization and scheduling become important. Viewings must be planned, timed with you and the prospective buyers, carried out and evaluated.

If an applicant expresses serious interest, the real estate agent checks his creditworthiness and obtains the self-disclosure including a confirmation of financing. By checking the financial background of potential buyers at an early stage, it can be ruled out that problems will arise shortly before the contract is signed.

Tip! Sell Off Market (not public)

Off Market means that your property sale will never be publicly visible. Your property will only be recommended to an internal, solvent group of buyers with an ideal constellation. Off market sales are especially claimed by prominent persons who want to keep the sale as well as address, photos and much more secret. Also private persons fall back on the service, for example if the family should not know anything about the upcoming sale or the neighbourhood. For such a discreet, off market sale you need a renowned real estate agent with a good network. Your advantage: Nobody will know about the sale.

• Sell Off Market

Valuation: Realistic prices increase the revenue

There are many questions to answer, the best answer is to have an expert at your side for the real estate valuation.

Which price is appropriate and realistic for your property, with or without real estate? If the purchase is not too long ago, the purchase price at that time can be a first indication. Comparable properties from the online offers of the regions can also provide a vague estimate.
If the value is too high, the property can “burn”, because it remains too long on the market and something seems to be wrong with the property.

Often the price is lowered, which means that the actual revenue potential of the land is lost – you are missing out on good money. This is also confirmed by a study conducted by the savings banks in cooperation with FlowFact AG and the IIB Dr. Hettenbach Institute. The study found a connection between marketing duration, sales price and marketing price. The study confirmed that the proceeds are greater and the marketing duration shorter if one relies on a realistic estimate when evaluating the property.

Thus, the professional assessment by experts of the market value of the property is highly recommended for a smooth sales process.

• Valuation by appraisers or experts (real estate agents)
• Revenue potential loses through price reduction, with too long insertion

Market value, mortgage lending value and real value

Different property values are used as the basis for valuation. The most important are the market value, the mortgage lending value and the real value. In principle, the market value, also known as the market value, is determined in a property valuation or real estate valuation.

Frequently used methods for determining the value are taken into account:

• Objective value
• Loan value
• Unit value
• Ground standard value
• Soil value

What valuation method for my object? Property + real estate

Three standardized methods are permitted for determining the value of the property by experts and appraisers: comparative value method, real value method and capitalized earnings value method. Which method makes sense when depends on the property. If it is a property, different valuation methods are used than for a building. Different valuation methods are also used for owner-occupied and rented properties. In the case of objects in compulsory auction, the value appraisals of the real estate can be viewed at the responsible local courts – often online. In this case, the owner’s consent is not required and any interested party can view such an appraisal free of charge.

Property Value Ordinance (ImmoWertV)

Until 1988, real estate valuation was based on the German Valuation Ordinance (WertV). In 2010, this was replaced by the German Real Estate Value Ordinance (ImmoWertV). The new law is intended to standardize valuation once again. With the adoption of the new regulation, the legislator also had foreign investors in mind. The ImmoWertV regulates binding terms and procedures for privately commissioned and publicly appointed experts. It is also binding for expert committees for real estate valuation.

The ImmoWertV distinguishes between the:

• Valuation of real estate and the
• Value determination of buildings

Good reasons for an evaluation by experts

If the property value is of interest, the market value must be determined. If the property is to be sold, if a divorce is pending or if inheritance matters are involved, the market value of the land is taken as a basis. The market value is also the basis for the value to be negotiated when granting loans and other forms of asset distribution. In case of a division of real estate assets (divorce, community of heirs) a price range is unsuitable. For this reason, a concrete sum must be stated when valuing real estate within the framework of market value assessments. This market value refers to the date determined in the expert opinion.

In the case of a sale of land, the precise value is less decisive and often the determined value of the land is quantified with a price range. When selling land and buildings, the regional market and supply and demand play an important role. Depending on the sales strategy, the comparative or market value determined is used differently. A basic distinction is made between sales at a fixed price and sales of land by means of a bidding process. The “perceived value” of the property should never be included in the marketing basis. If the selling price is higher than the market value, the buyer has to provide much higher equity than necessary.

Valuation of developed and undeveloped land

With the comparative value of the IPV, an offer price can be determined more precisely. In contrast to the comparative value, which is compiled by the real estate agent, the market value is the exact price that a property can probably achieve on a certain key date. What is included in the market value is regulated in the Building Code (BauGB). In order to determine the market value of a property, the location, condition, equipment (in the developed state), but also legal circumstances are taken into account. The term market value is used synonymously.

In a property valuation, the land value is determined. The determination of land value is based on the comparative value method and the use of suitable standard land values. In accordance with the German Federal Building Code (BauGB), expert committees must be formed to calculate the land values. These expert committees are composed of independent experts as well as an employee of the tax authorities.

• Tips & details: valuate property

The value of the building site

For the evaluation of building plots, the standard soil values provide a point of reference. The standard values indicate how much a square meter of space in a certain location costs on average. Concrete characteristics of the property are not included in the standard land values. Since only an average of the regional location is used for evaluation, the standard land values can deviate greatly from the actual value of the property.

In order to determine the value of the building site, it is necessary to inspect the extract from the land register. This excerpt, which is available from the land registry, contains all entries in the land register for the property and corresponds to a history of the property. However, only the seller is entitled to request the extract from the land register. The extract from the land register ensures that the seller has corresponding rights to the property and is actually allowed to sell it. If several entitled persons are registered, they can only sell their respective shares. Existing restrictions regarding the use of the land are also entered in the land register extract (e.g. land can only be built on for residential purposes). For buyers and sellers, the land register excerpt is indispensable for the valuation, division or sale of the land or property.

Another important point in the valuation is the location of the land or property. Criteria for the valuation are:

• The macro location, i.e. the region or the city district
• The microlocation, the immediate neighborhood of the property

The evaluation takes into account, for example, the neighborhood’s social milieu and its infrastructure. Even if good transport connections to shopping, school and industrial areas are not planned until the future, this can already have an impact on the property valuation.

Property valuation in the focus of investors

In addition to the standard valuation, the profitability of a plot of land or a property is of particular interest to investors. The profitability of a property refers to its development in future years. Since the boundary parameters of a property and the valuation made on a reporting date can change at short notice, only an estimate of the expected profitability is possible. The “location” factor also receives special weighting in this estimate. In a study, “Die Welt” (German newspaper) has taken into account the development of the macro locations of all German districts until 2030. A further focus of future performance is the “renovation backlog”, provided that above-average maintenance measures are expected. If the marketing of your property is to be aimed particularly at investors, further criteria are required to assess the investment offer. In addition, the form and framework of the financing are also important for investors in a property valuation. In addition, the reputation of the project developer is also important.

Taxes on land sale: Overview

Taxes are payable on every sale. Of course this also applies to real estate.

Acquisition tax, speculation period, sales tax, trade tax

Since 2012, taxes of 25 % are due on the sale of land. This applies to the profit made from the sale of a property. In principle, a speculation period of ten years also applies here. The profit is calculated as the difference between the acquisition costs and the sales proceeds.

There is no sales tax on the sale of land. Trade tax is only payable by businesses if the purchased property is counted as business assets.

In the case of large plots of land on which no construction projects are possible, a division is also advisable. In some German federal states, however, special official approval is required for the division of a property. The public building authorities or a civil engineer can provide information on this.

Building right: Later development of a property

The building law is the basis for a later development of a property. For this the building authority needs some documents like:

• Marking
• Floor
• Flat piece
• Outline
• Legal charges
• Registered building loads
• Information about adjacent properties

Marking: Real estate cadastre

A markung is a unit of area that can be found in the real estate cadastre of a municipality. The demarcation describes the ownership of a plot of land and is registered in the land register. The term cadastral plot designates an open area, usually an agricultural area.

A parcel of land is an officially surveyed part of an area. An outline sketches the respective plot of land in terms of area.

Grundschuld (former mortgage): Legal encumbrances

The legal encumbrances on real estate include first and foremost the mortgage, the land charge, the annuity charge, the life annuity, the easement, the usufruct and the real charge. The mortgage used to be a common form of loan security. Banks in particular have used these possibilities to secure loans.

In contrast to a mortgage, the land charge is independent of a claim to be secured. The annuity charge is a different type of land charge and secures payments. However, these payments do not repay the debt, but are rather to be considered as interest payments.

Leibrente, usufruct and rights

In the case of the life annuity, a piece of land can be used as collateral. The life annuity as such is a contract under the law of obligations, which can be enforced in given cases. An easement stipulates that a neighbor may use the land or that the land owner may not carry out certain things on his land. This is mainly the case with transit permits or when a building ban is to be registered.

The usufruct regulates the use of the land. The usufruct gives the usufructuary all rights as the land owner. Only a sale is prohibited. Real estate includes all actions to which the owner of the land plot commits himself. A real charge enables a creditor to auction the land.

Building development in settlement:

Large construction site industrial park:

Costs, expiry and land transfer tax

There are also some additional costs that have to be considered when selling land. These include first and foremost the land transfer tax. It is different in the individual federal states. In Hesse the tax rate is currently 6% of the purchase price. In the federal state of Rhineland-Palatinate it is currently 5%.

Land transfer tax at purchase price 500,000 Euro

Source: real estate transfer tax table by Alex Fischer (Germany).

Broker commission and upper limits

In addition, there is the broker commission. The amount of the brokerage fee is not regulated by law in Germany. Usually the buyer usually bears this burden. Sometimes, however, the costs are shared between buyer and seller. The amount of the brokerage fee is regulated differently in the federal states. However, there are upper limits.

In the federal state of Rhineland-Palatinate, the usual brokerage fee is 7.14% and is divided equally between the buyer and the seller. In Hesse, the broker’s commission is 5.95% and is borne exclusively by the buyer.

Costs for the notary public

In addition to these costs, there are also the costs for the notary. The amount of the notary’s fees is uniformly regulated in Germany. The basis for this is the so-called Court and Notarial Costs Act. However, these notarial costs can be lower when purchasing building land.

Whoever acquires a property pays the necessary notary fees. If a building is erected on this property, this circumstance does not constitute a further purchase and does not fall under the obligation to pay notary fees.

Procedure of a notarial act

A notarial certification always follows a certain scheme. For the time being a date is chosen for the notarization. At this appointment, not only the notary but also all contracting parties must be present in person. The notary reads out the purchase contract. Change requests can then still be made. The notary decides whether the desired changes are also possible. Afterwards the purchase contract is officially signed by the contracting parties and the notary.

The notary then ensures that the purchase is recorded in the land register. In addition, the tax office is informed about the purchase, which sends the buyer the land transfer tax assessment. Finally, the notary sends the buyer his fee note.

If you’re looking to invest in Germany’s thriving real estate market, Lukinski has you covered. From guides to German inheritance law, tax optimization, additional costs and hidden purchase fees, renovation, and the list goes on. Want to delegate the work? As German real estate experts, we can be your man on the ground:

• Realtor, Agent, and Advisor: Lukinski

Germany’s Second City

Munich counts itself to one of Germany’s economic capitals. It is also famous for its high quality of life and surrounding nature. The alps for skiing or hiking, as well as countless lakes for summer activities, are all nearby, not to mention the italian coast just to the south. Nowadays it is Germany’s third-largest city with some 1,5 million inhabitants. It has a very low unemployment rate, strong technology and science sector, as well as increasing popularity for startups, not to mention its everstrong automotive and aviation industries.

Munich Real Estate Market Explained

Munich’s real estate sector is characterized by strong demand and low supply. This is also unlikely to change, with little construction being done within city limits. Munich is also the most expensive city for real estate in Germany. The average prices for single- or double-family residences are around €1.3 mil. (almost twice as high as any other city in Germany) and for apartments around €450.000, also higher than in any other city in Germany.

Buy or Rent in Munich?

If you’re thinking about investing in Munich’s real estate, the question about rent or buy is probably in focus. The recommendation here is clear: Buy or, when possible, build. In recent years, the development has been towards low interest rate on mortgages. This means you’re likely to lose money renting, as opposed to buying, when looking at one property. Furthermore, with the inner city filling up, and with the market extremely tense, the best option is likely to invest in the outer parts of the city. Comparing the buying price and yearly rent in these parts shows that the ratio here is good. Most importantly though, the price is increasing, meaning that your investment will likely pay off. In these regions you’ll find prices like:

• Buy: 5.600 €/m²
• Rent: 16,34 €/m²

Prices Layout for Residentials

With the go-to being near the outer parts of the city, and with Munich being a family-friendly city, the prices for single- or double-family residences give a good indication of the market. These are, in €/m²

• Very Good – €1.550.000-€16.000.000 (increasing)
• Good – €1.300.000-€3.100.000 (increasing)
• Mediocre – €700.000-€1.800.000 (increasing)
• Simple – €500.000-€1.300.000 (steady)

Buy in Munich

First we take a detailed look at current statistics for buyers. Here you will find a lot of information, from the purchase price for a newly built condominium to tips for renting property. We will also take a look at two important issues: buying in Munich and the danger of a real estate bubble Munich.

1. Purchase price for newly built condominium
2. Purchase price development since 2010
3. Highest real estate loans in Munich
4. Munich real estate bubble?
5. Buy in Munich
6. Number of sales of luxury homes
7. Let the property

Munich’s city centre with its famous church.

Purchase price for newly built condominium

Purchase price for newly constructed condominiums in Munich from 2009 to 2019 (in euros per square meter). From 2009 to 2019, the price per square metre for an ETW (new building) rose from 3,400 euros / square metre to 8,100 euros / square metre. An increase of 4,700 euros / square metre, a whole + 138.2% in just 10 years. Will the situation remain tense? Read our analysis with current facts and figures.

More statistics can be found at Statista

Purchase price development since 2010

Already 10 years ago Munich had a significantly higher price level for the purchase of real estate. The development continued. Here you can see a comparison of the purchase price of condominiums in Munich 10 years ago with the whole of Germany in the 1st quarter of 2010 and 2011 (in Euro per m²)

Munich

• Munich, cut: 3.538 Euro / square meter
• 1st quarter 2010: 3,396 euros / square meter
• Increase Q1 2011: 3,680 Euro / square meter

On average higher purchase price at the turn of the year 10 years ago:

+123.78 % purchase price (see Germany)

Germany (comparison)

• Germany, cut: 1,581 Euro / square meter
• 1st quarter 2010: 1,519 euros / square meter
• Increase Q1 2011: 1,643 Euro / square meter

More statistics can be found at Statista

Buying in Bavaria since 2010

Purchase prices for residential real estate in Bavaria by cities in the first half of 2011 (in EUR 1,000).

• Seihenhaus (blue)
• One-family house (dark blue)

More statistics can be found at Statista

Highest real estate loans in Munich

The chart shows a ranking according to highest average mortgage loan in the 20 largest cities in Germany based on a current evaluation of the comparison platform Check24. Loans of 500,000 euros are compared here, for 101 square metres of living space.

1. Munich – 504,000 Euros
2. Frankfurt – 417,000 Euro
3. Hamburg – 384,000 Euros
4. …

More statistics can be found at Statista

Real estate bubble Munich?

The chart shows the risk of a real estate bubble by index value in selected major cities worldwide. The UBS Global Real Estate Bubble Index places the real estate market in a long-term perspective and aims to track the risk of real estate bubbles in global cities. The index examined 24 major cities. Munich ranks first in the survey.

More statistics can be found at Statista

Where is it worth buying? comparison

Where is it worth buying a property (house, semi-detached house, condominium, etc.)? In comparison, one sees the potential that lies dormant above all in NRW and Hessen. This chart shows the cost advantages of home ownership compared to rents in German metropolitan areas in 2018.

1. Düsseldorf with 53.8%
2. Cologne with 53.6%
3. Frankfurt with 50.1%
4. Stuttgart with 44.0%
5. Leipzig with 41.8%
6. Munich with 37.6%
7. Hamburg with 35.0%
8. Berlin with 26.9%

More statistics can be found at Statista

Exclusive houses and designer homes in Munich.

Exclusive freehold flat, in the middle of the Viktualienmarkt.

Number of sales of luxury homes

How many luxury properties are sold and bought in Germany each year? These statistics show how manageable the market is. Here you can see the number of sales of luxury homes in selected cities in Germany.

More statistics can be found at Statista

Data show for visualization last survey in the 1st half of 2010 and 2011.

Are there enough apartments built?

You can live in your own property yourself or you can rent it out. With the current housing shortage, this is a good prerequisite for increasing rental income. Because as always, supply and demand. The chart shows the share of annual building completions in 2016-2018 in the annual demand in the period 2016-2020.

1. Hamburg and Düsseldorf Coverage / year at 86%
2. Frankfurt am Main Coverage / year at 78%
3. Berlin coverage / year at 73%
4. Munich Coverage / year at 67%
5. Stuttgart Coverage / year at 56%
6. Cologne Coverage / year at 46%

More statistics can be found at Statista

Rent

1. Rental price for the perfect apartment
2. Housing market: Current requests and offers
3. Reality Check: Prices for first time rentals
4. Residential building in Munich
5. Service charges in comparison
6. Rent a commercial property
7. Rent office: Free areas and practices
8. Rent office: compare prices

Rental price for the perfect apartment

As with the purchase of real estate, Munich is also at the top of the German-wide comparison of average rents. The chart shows the average rent for an apartment with 3 to 4 rooms (81 to 105 sqm).

1. Munich – 1.500 Euro / month
2. Frankfurt – 1.170 Euro / month
3. Stuttgart – 1.080 Euro / month
4. Hamburg – 1.030 Euro / month
5. Düsseldorf – 900 Euro / month
6. …

More statistics can be found at Statista

Home market: Current requests and offers

The chart shows requests and offers for rental apartments in the 14 largest cities in Germany. 150,000 advertisements for rental apartments and the corresponding contact enquiries were evaluated.

More statistics can be found at Statista

Reality Check: Prices for first time rentals

The chart shows the cold rents for first-time rentals in top 7 cities per square metre.

1. Munich from 12.96 Euro to 17.42 Euro (+ 4.46 Euro)
2. Stuttgart from 10.00 Euro to 14.21 Euro (+ 4.21 Euro)
3. Frankfurt from 11.57 Euro to 14.18 Euro (+ 3.01 Euro)
4. Hamburg from 12.00 Euro to 13.16 Euro (+ 1.16 Euro)
5. Düsseldorf from 8.62 Euro to 12.55 Euro (+ 3.93 Euro)
6. Berlin from 7.05 Euro to 12.40 Euro (+ 5.35 Euro)
7. Cologne from 9.12 Euro to 12.39 Euro (+ 2.59 Euro)
8. Comparable value: Germany from EUR 6.99 to EUR 9.58 (+ EUR 2.59)

More statistics can be found at Statista

Residential building in Munich

Number of residential buildings in Munich in the years from 1980 to 2018 (in 1,000). The changes at a glance. Residential buildings increase in the last 10 years (2008 – 2018):

+ 9,000 residential units (+ 6.7%)

Residential buildings increase in the last 38 years (1980 – 2018), since survey:

+ 35,300 residential units (+ 32.9%)

More statistics can be found at Statista

Service charges in comparison

The chart shows the total ancillary housing costs per year for a three-person household (in euros). The average in Germany is EUR 1,900.84 per year. The cheapest cities for ancillary costs are:

1. Munich – 1.643,00 Euro / year (257,84 Euro less)
2. Mainz – 1,686.02 Euro / year
3. Hamburg – 1,682.40 Euro / year
4. Kiel – 1.682,40 Euro / year
5. Stuttgart – 1,729.74 Euro / year

More statistics can be found at Statista

Commercial property rent

Location is everything! Especially for entrepreneurs and companies. In all major cities the rents for commercial properties are rising, only in Berlin the costs for the monthly rent are getting cheaper, and that in the best location. This chart shows the indexed costs for commercial real estate in the largest cities in Germany (Hamburg, Cologne, Frankfurt, Munich and Berlin) in comparison. A joint index takes into account shop rents in prime locations, shop rents in secondary centres, office rents in city centres and the prices for commercial properties.

1. Hamburg
2. Cologne
3. Frankfurt
4. Munich
5. Berlin

More statistics can be found at Statista

Rent office: Free areas and practices

Finding the perfect office – How does Munich compare to other German cities? How many free spaces and practices are there in relation to Stuttgart, Hamburg, Berlin & Co. This chart shows the proportion of vacant office space as a proportion of total office space in selected German cities in 2018.

1. Frankfurt am Main – 6.8% free / 93.2% rented
2. Düsseldorf – 6.4% vacant / 93.6% rented
3. Hamburg – 3.6% vacant / 96.4% rented
4. Cologne – 2.8% free / 97.2% rented
5. Stuttgart – 2.3% free / 97.7% rented
6. Munich – 1.8% free / 98.2% rented
7. Berlin – 1.5% free / 98.5% rented

More statistics can be found at Statista

Rent office: Prices in comparison

Where are office rents currently highest? Munich is at the top of the league, with current average office rents of 39.50 euros / m² and thus second place in the ranking of office rents in Germany. Here you can see the top rents for office space in German cities.

1. Frankfurt – 45.50 Euro / m² (+ 23.1%)
2. Berlin – 39.90 Euro / m² (+ 44.9%)
3. Munich – 39.50 Euro / m² (+ 24.6%)
4. Hamburg – 29.00 Euro / m² (+ 19.0%)
5. Düsseldorf – 28.50 Euro / m² (+ 19.3%)
6. Cologne – 25.50 Euro / m² (+ 20.4%)
7. Stuttgart – 24.00 Euro / m² (+ 21.7%)

More statistics can be found at Statista

Munich at sunset.

The romantic and typically European, Bavarian city centre.

Living, economy, city and inhabitants

1. City Map of Munich
2. Private households: Forecast until 2030 in Bavaria
3. Munich is family-friendly
4. Comparison: Munich, Hamburg, Cologne and Berlin

City map Munich

Private households: forecast until 2030

How is Munich developing as a city and in Bavaria as a federal state? Here you can see the number of private households in Germany by federal state in 2018 and forecast for 2030 (in 1,000). This is an optimal situation for landlords as the demand for living space increases.

More statistics can be found at Statista

Munich is family-friendly

Do you consider your city to be family-friendly?

1. Stuttgart – 65%
2. Dortmund – 63%
3. Bremen – 61%
4. Hamburg – 60%
5. Cologne – 60%
6. Dusseldorf – 57%
7. Munich – 56%
8. Frankfurt – 51%
9. Berlin – 48%
10. Essen- 41%

More statistics can be found at Statista

Comparison: Munich, Hamburg, Cologne and Berlin

Where do most of the inhabitants live? Here you see visualized, the 4 biggest cities in Germany. The graph shows the number of inhabitants in the German megacities on 31 December 2018, at the turn of the year 2018 / 2019.

• Berlin – 3,644,826 inhabitants
• Hamburg – 1,841,179 inhabitants (- 1,625,647 cf. Berlin)
• Munich – 1,471,508 inhabitants (- 2,173,318 see Berlin)
• Cologne – 1,085,664 inhabitants (- 2,559,162 cf. Berlin)

More statistics can be found at Statista

Buy in Germany

Tip! Read more about Buy an apartment: The 10 most expensive German cities.

• Ranking: Square meter prices for condominiums
• House price index: development of house prices
• Development of construction investments in Germany
• Ownership ratio in Germany

Ranking: Square meter prices for condominiums

Cities with the highest prices per square meter for condominiums in 2015 and 2019 (in euros per square meter).

1. Munich – 8,993 Euro / square meter
2. Frankfurt am Main – 6,701 Euro / square meter
3. Stuttgart – 6,324 Euro / square meter
4. Potsdam – 6.1.64 Euro / square meter
5. Berlin – 5.578 Euro / square meter
6. Hamburg – 5,507 Euro / square meter
7. Düsseldorf – 5,470 Euro / square meter
8. Erlangen – 5.416 Euro / square meter
9. Regensburg – 5.411 Euro / square meter
10. Freiburg im Breisgau – 5,349 Euro / square meter

More statistics can be found at Statista

House price index: development of house prices

Development of house prices in Germany in the years from 2000 to 2018 (2015 = Index 100).

More statistics can be found at Statista

Development of construction investments in Germany

Development of construction investments in Germany in the years 2000 to 2016 (compared to previous year).

More statistics can be found at Statista

Ownership ratio in Germany

Ownership rate in Germany in the period from 1998 to 2018 by Länder

All further information on statistics can be found at Statista

Rentals in Germany

Tip! Read more about Rent an apartment: The 10 most expensive German cities.

1. Development of the rental price index
2. Ranking: Rents for apartments
3. Number of newly constructed residential buildings

Development of the rental price index

Development of the rent price index for Germany in the years from 1995 to 2019 (2015 = Index 100)

More statistics can be found at Statista

Ranking: Rents for apartments

Cities with the highest rental prices for apartments in Germany in the 4th quarter of 2019(in euros per square metre)

More statistics can be found at Statista

Number of newly constructed residential buildings

New construction: Where are new apartments being built? Number of newly constructed residential buildings in Germany by federal state in 2017 and 2018 (in 1,000).

Premium or luxury property? Read more: Realtor Stuttgart

Buy in Stuttgart

First we take a detailed look at current statistics for buyers. Here you will find a lot of information, from the purchase price for a newly built condominium to tips for renting property.

1. Buying in Stuttgart?
2. Development of property prices (10 years)
3. Number of sales of luxury homes
4. Let the property

If you’re looking to invest in Germany’s thriving real estate market, Lukinski has you covered. From guides to German inheritance law, tax optimization, additional costs and hidden purchase fees, renovation, and the list goes on. Want to delegate the work? As German real estate experts, we can be your man on the ground:

• Realtor, Agent, and Advisor: Lukinski

Where is it Worth Buying? Comparison

Where is it worth buying a property (house, semi-detached house, condominium, etc.)? In comparison, one sees the potential that lies dormant above all in NRW and Hessen. This chart shows the cost advantages of home ownership compared to rents in German metropolitan areas in 2018.

1. Düsseldorf with 53.8%
2. Cologne with 53.6%
3. Frankfurt with 50.1%
4. Stuttgart with 44.0%
5. Leipzig with 41.8%
6. Munich with 37.6%
7. Hamburg with 35.0%
8. Berlin with 26.9%

Development of Real Estate Prices (10 years)

Many are interested not only in current prices, but also in the development of values. The 10-year review is very helpful in this case. Therefore, we have here for you a statistic from 2011 about purchase prices for residential properties in Saarland and Baden-Württemberg by cities in the first half of 2011.

• Stuttgart – Terraced house 467.821 Euro / single family house 685.941 EUro
• …
• Freiburg – terraced house 431.528 Euro / single family house 562.552 Euro
• Friedrichshafen – terraced house 328.278 Euro / single family house 476.439 Euro
• Heidelberg – row house 376.731 Euro / single family house 549.292 Euro

Number of Sales of Luxury Homes

How many luxury properties are sold and bought in Germany each year? These statistics show how manageable the market is. Here you can see the number of sales of luxury homes in selected cities in Germany.

Data show for visualization last survey in the 1st half of 2010 and 2011.

Are there Enough Apartments?

You can live in your own property yourself or you can rent it out. With the current housing shortage, this is a good prerequisite for increasing rental income. Because as always, supply and demand. The chart shows the share of annual building completions in 2016-2018 in the annual demand in the period 2016-2020.

1. Hamburg and Düsseldorf Coverage / year at 86%
2. Frankfurt am Main Coverage / year at 78%
3. Berlin coverage / year at 73%
4. Munich Coverage / year at 67%
5. Stuttgart Coverage / year at 56%
6. Cologne Coverage / year at 46%

Rental

1. Rental price for dream apartment
2. Reality Check: Prices for first time rentals
3. Service charges in comparison
4. Housing market: Current requests and offers
5. Rent office: Free areas and practices

Rental price for Dream Apartment

When it comes to the rent you’re willing to pay for the perfect apartment, Stuttgart is way up there in a Germany-wide comparison of average rents. The chart shows the average rent for an apartment with 3 to 4 rooms (81 to 105 sqm).

1. Munich – 1.500 Euro / month
2. Frankfurt – 1.170 Euro / month
3. Stuttgart – 1.080 Euro / month
4. Hamburg – 1.030 Euro / month
5. Düsseldorf – 900 Euro / month
6. …

Reality Check: Prices for first time rentals

The chart shows the cold rents for first-time rentals in top 7 cities per square metre.

1. Munich from 12.96 Euro to 17.42 Euro (+ 4.46 Euro)
2. Stuttgart from 10.00 Euro to 14.21 Euro (+ 4.21 Euro)
3. Frankfurt from 11.57 Euro to 14.18 Euro (+ 3.01 Euro)
4. Hamburg from 12.00 Euro to 13.16 Euro (+ 1.16 Euro)
5. Düsseldorf from 8.62 Euro to 12.55 Euro (+ 3.93 Euro)
6. Berlin from 7.05 Euro to 12.40 Euro (+ 5.35 Euro)
7. Cologne from 9.12 Euro to 12.39 Euro (+ 2.59 Euro)
8. Comparable value: Germany from EUR 6.99 to EUR 9.58 (+ EUR 2.59)

Service Charges in Comparison

The chart shows the total ancillary housing costs per year for a three-person household (in euros). The average in Germany is EUR 1,900.84 per year. The cheapest cities for ancillary costs are:

1. Munich – 1.643,00 Euro / year (257,84 Euro less)
2. Mainz – 1,686.02 Euro / year
3. Hamburg – 1,682.40 Euro / year
4. Kiel – 1.682,40 Euro / year
5. Stuttgart – 1,729.74 Euro / year

More statistics can be found at Statista

Home market: Current requests and offers

The chart shows requests and offers for rental apartments in the 14 largest cities in Germany. 150,000 advertisements for rental apartments and the corresponding contact enquiries were evaluated.

More statistics can be found at Statista

Rent office: Free areas and practices

Finding the perfect office – How does Stuttgart compare to other German cities? How many free spaces and practices are there in relation to Frankfurt, Cologne, Düsseldorf, Munich & Co. This chart shows the proportion of vacant office space as a proportion of total office space in selected German cities in 2018.

1. Frankfurt am Main – 6.8% free / 93.2% rented
2. Düsseldorf – 6.4% vacant / 93.6% rented
3. Hamburg – 3.6% vacant / 96.4% rented
4. Cologne – 2.8% free / 97.2% rented
5. Stuttgart – 2.3% free / 97.7% rented
6. Munich – 1.8% free / 98.2% rented
7. Berlin – 1.5% free / 98.5% rented

More statistics can be found at Statista

Living, economy, city and inhabitants

1. City map of Stuttgart
2. Private households: Forecast until 2030 in BW
3. Place 1 of the most livable cities in Germany
4. Stuttgart is family-friendly

City map Stuttgart

Private households: forecast until 2030

How is Stuttgart developing as a city and in Baden-Württemberg as a federal state? Here you can see the number of private households in Germany by federal state in 2018 and forecast for 2030 (in 1,000). This is an optimal situation for landlords as the demand for living space increases.

More statistics can be found at Statista

Place 1 of the most livable cities in Germany

Do you consider your city worth living in?

1. Stuttgart – 89% think the city is worth living in! 9 out of 10 people live in Stuttgart
2. Cologne – 89%
3. Hamburg – 88%
4. Dusseldorf – 87%
5. Bremen – 86%
6. Munich – 84%
7. Berlin – 83%
8. Essen – 80%
9. Frankfurt – 79%
10. Dortmund – 76%

More statistics can be found at Statista

Stuttgart is family-friendly

Do you consider your city to be family-friendly?

1. Stuttgart – 65%
2. Dortmund – 63%
3. Bremen – 61%
4. Hamburg – 60%
5. Cologne – 60%
6. Dusseldorf – 57%
7. Munich – 56%
8. Frankfurt – 51%
9. Berlin – 48%
10. Essen – 41%

More statistics can be found at Statista

Buy in Germany

Tip! Read more about Buy an apartment: The 10 most expensive German cities.

• Ranking: Square meter prices for condominiums
• House price index: development of house prices
• Development of construction investments in Germany
• Ownership ratio in Germany

Ranking: Square meter prices for condominiums

Cities with the highest prices per square meter for condominiums in 2015 and 2019 (in euros per square meter).

1. Munich – 8,993 Euro / square meter
2. Frankfurt am Main – 6,701 Euro / square meter
3. Stuttgart – 6,324 Euro / square meter
4. Potsdam – 6.1.64 Euro / square meter
5. Berlin – 5.578 Euro / square meter
6. Hamburg – 5,507 Euro / square meter
7. Düsseldorf – 5,470 Euro / square meter
8. Erlangen – 5.416 Euro / square meter
9. Regensburg – 5.411 Euro / square meter
10. Freiburg im Breisgau – 5,349 Euro / square meter

More statistics can be found at Statista

House price index: development of house prices

Development of house prices in Germany in the years from 2000 to 2018 (2015 = Index 100).

More statistics can be found at Statista

Development of construction investments in Germany

Development of construction investments in Germany in the years 2000 to 2016 (compared to previous year).

More statistics can be found at Statista

Ownership ratio in Germany

Ownership rate in Germany in the period from 1998 to 2018 by Länder

All further information on statistics can be found at Statista

Rentals in Germany

Tip! Read more about Rent an apartment: The 10 most expensive German cities.

1. Development of the rental price index
2. Ranking: Rents for apartments
3. Number of newly constructed residential buildings

Development of the rental price index

Development of the rent price index for Germany in the years from 1995 to 2019 (2015 = Index 100)

More statistics can be found at Statista

Ranking: Rents for apartments

Cities with the highest rental prices for apartments in Germany in the 4th quarter of 2019(in euros per square metre)

More statistics can be found at Statista

Number of newly constructed residential buildings

New construction: Where are new apartments being built? Number of newly constructed residential buildings in Germany by federal state in 2017 and 2018 (in 1,000).

If you’re looking to invest in Germany’s thriving real estate market, Lukinski has you covered. From guides to German inheritance law, tax optimization, additional costs and hidden purchase fees, renovation, and the list goes on. Want to delegate the work? As German real estate experts, we can be your man on the ground:

• Realtor, Agent, and Advisor: Lukinski

Living in Hannover

How is the city developing? We take a look at the forecast for the development of private households in Lower Saxony.

1. City map of Hanover
2. Private households: Forecast until 2030 in Lower Saxony
3. Net disposable income

City map Hannover

Net disposable income

Ranking of disposable income per inhabitant in the 15 largest cities in Germany in 2016 (in euros).

More statistics can be found at Statista

Buy in Germany

Tip! Read more about Buy an apartment: The 10 most expensive German cities.

1. Ranking: Square meter prices for condominiums
2. House price index: Development of house prices
3. Development of construction investments in Germany
4. Ownership ratio in Germany

Ranking: Square meter prices for condominiums

Cities with the highest prices per square meter for condominiums in 2015 and 2019 (in euros per square meter).

1. Munich – 8,993 Euro / square meter
2. Frankfurt am Main – 6,701 Euro / square meter
3. Stuttgart – 6,324 Euro / square meter
4. Potsdam – 6.1.64 Euro / square meter
5. Berlin – 5.578 Euro / square meter
6. Hamburg – 5,507 Euro / square meter
7. Düsseldorf – 5,470 Euro / square meter
8. Erlangen – 5.416 Euro / square meter
9. Regensburg – 5.411 Euro / square meter
10. Freiburg im Breisgau – 5,349 Euro / square meter

More statistics can be found at Statista

House price index: development of house prices

Development of house prices in Germany in the years from 2000 to 2018 (2015 = Index 100).

More statistics can be found at Statista

Development of construction investments in Germany

Development of construction investments in Germany in the years 2000 to 2016 (compared to previous year).

More statistics can be found at Statista

Ownership ratio in Germany

Ownership rate in Germany in the period from 1998 to 2018 by Länder

All further information on statistics can be found at Statista

City Palace Hanover

Rentals in Germany

Tip! Read more about Rent an apartment: The 10 most expensive German cities.

1. Development of the rental price index
2. Ranking: Rents for apartments
3. Number of newly constructed residential buildings

Development of the rental price index

Development of the rent price index for Germany in the years from 1995 to 2019 (2015 = Index 100)

More statistics can be found at Statista

Ranking: Rents for apartments

Cities with the highest rental prices for apartments in Germany in the 4th quarter of 2019(in euros per square metre)

More statistics can be found at Statista

Number of newly constructed residential buildings

New construction: Where are new apartments being built? Number of newly constructed residential buildings in Germany by federal state in 2017 and 2018 (in 1,000).