Price development of building land in Germany

AllGrund 2008, February

In Western Germany the prices of building land have been virtually jumping up in the past ten years: from 78 Euro per square meter in the year 1997 to 143 Euro in the year 2006. That is an increase of 83,3%. Compared to 2005 the cost of building land in Western Germany has increased by 2,1%. These are the figures that the institute of urban development ("Institut fuer Staedtebau") has provided as based on its latest analysis. In Eastern Germany the situation is still different also in this regard: the prices of building land have been going up by 12,2% within the mentioned period of ten years time - from 41 € to 46 €. As compared to the previous year 2005 they even decreased by 6,1% in the year 2006. The average price of building land there still was 49 € in the year 2005, as registered by the institute of urban development.

Since 1997 the number of building permissions in Western Germany decreased by 43,3%.

The high boost in the West-German federal states has also made the average value in Western Germany go up. In the year 1997 it used to be 65 € - yet henceforth it is 120 € per square meter, which is commensurate to a price increase by 84,6%. Comparing the years 2006/2005 one comes to an increase of 3,4%. The average cost of building land has been going up from an average of 116 € to an average of 120 €. The most expensive Federal Country and City as far as prices for building land are concerned is Berlin; the price in 2006 ranged at considerable 402 € per sqm.