What you should know about the standard land value in Munich

If you are planning to sell or buy a property, the standard land value plays an important role, as it serves as an important basis for calculating the value of land and real estate. It can vary greatly from district to district and from location to location, as the standard land values in Munich clearly show.

Our article provides you with all the important information and explains the various aspects of the standard land value.

What exactly is the standard land value?

The standard land value is the average price per square meter for undeveloped land in a specific area, the so-called standard land value zone. These zones are not determined arbitrarily, but must largely correspond in type and extent of use in accordance with legal requirements. This is based on Section 196 of the German Building Code (BauGB).

Expert committees, which are made up of appraisers and real estate experts, define the standard land value zones by analyzing the purchase prices of properties in a region or district and calculating a standard value that is then used as the basis for the valuation of other properties.

All properties in a defined standard value zone therefore have the same standard land value per square meter. This is used to determine the individual market value of a specific property.

It is important to note in this context that the standard land value refers only to the land itself and does not take into account buildings and other structures on it.

However, the size and extent of standard land value zones are not defined by law. They can consist of a single street or a neighborhood, but can also encompass entire towns.

What is the difference between standard land value, land value and market value?

Within the real estate industry, terms are often used that can quickly lead to confusion, as they sound similar but have different meanings: Standard land value, land value and market value.

Although standard land values differ from area to area, there is only one type that is defined in a standardized procedure by the expert committees regardless of the location of the standard land value zone. The standard land value serves as a reference for determining the land value. This denotes the specific value of an individual plot of land.

To determine the provisional land value, the standard land value is first multiplied by the plot size. The formula therefore applies:

Standard land value (Euro/m²) x plot area (m²) = provisional land value (Euro)

Two examples: A plot of land in the sought-after Munich district of Nymphenburg has a standard land value of EUR 6,600 per m² as at 01.01.2024. The size is 500 m². This results in a value of 6,600 euros/m² x 500 m² = 3,300,000 euros.

In the Moosach district, the standard land value is significantly lower at 2,300 euros/m². Here, the land value for the same plot size would be EUR 2,300/m² x 500 m² = EUR 1,150,000.

However, many other factors influence the determination of the land value. A real estate expert is therefore required to calculate this accurately.

This leaves the market value. This is the price that can actually be achieved when selling a property on the open market. This includes not only the land value, but also the value of any existing buildings and other facilities.

How can you determine the standard land value in Munich and elsewhere?

Determining the standard land value is a rather complex process in which various factors have to be taken into account. However, the relevant expert committees use standardized methods and procedures for this.

The determination of the standard land value is based on the land prices that have been achieved in a certain area in recent years. The expert committees examine the relevant purchase contracts and use them to calculate an average price, which is set as the standard land value. Actual purchase prices are therefore used for a valuation that is as realistic as possible.

However, as already mentioned above, there are other factors in addition to the standard land value that influence the land value:

Location of the property

In places with high demand and in particularly attractive residential areas, the cost of a plot of land is usually higher than in other regions.

Size and cut

Prices per square meter are usually lower for large and irregularly shaped plots.

Development

If a property is already connected to the transport, water and electricity networks, a higher value can be achieved than for undeveloped land.

Possible uses

The land value is also affected by whether a property is already developed or not and whether it can be converted for a different use, such as a commercial property instead of a residential property.

For potential property sellers and prospective buyers, the factors mentioned and their significance for the market value are usually difficult to assess. It is therefore advisable to consult an experienced and competent real estate agent with in-depth market knowledge who can realistically determine the actual value of a property.

Use and application of standard land values in Munich

The standard land value in a particular area is not just a theoretical figure, but has many practical applications. Here are a few examples:

1. valuation for a property sale

If you are planning to sell a property, the standard land value is an important basis. It provides you with initial information on how much your property is worth and how you can set an appropriate sales price.

2. orientation for a property purchase

The standard land value is also a useful source of information for potential buyers of a property, as it shows whether an offer is realistic or whether an inflated price is being asked.

3. calculation of the property tax

As a property owner, you have to pay property tax. This is also calculated on the basis of the standard land value - the higher the value, the higher the property tax usually is.

4. calculation of inheritance or gift tax

Finally, the standard land value also plays a role in connection with taxable inheritances and gifts. It is used to determine the value of the property, which is a decisive factor in the amount of inheritance or gift tax.

Where can I find the standard land value for a property?

To find out the standard land value for a particular property, you can use public sources and available databases or ask a real estate agent in the region. The values compiled by the expert committees are published and can usually be viewed online. In the individual federal states, there are standard land value portals such as BORIS (standard land value information system), where you can access the values for a fee or free of charge. Or you can research on the official websites of cities and municipalities. For example, you pay a fee of 30 euros for information on standard land values in Munich.

How high are the standard land values in Munich?

Munich is one of the most attractive cities in Germany for both private residential and commercial development. The standard land values in the Bavarian capital are correspondingly high compared to other cities. This applies above all to the city center and sought-after residential areas such as Bogenhausen, Harlaching, Schwabing and Nymphenburg.

These are the standard land values for selected Munich districts:

- Bogenhausen: 7900 € per m²
- Hadern: 2900 € per m²
- Harlaching: 4100 € per m²
- Laim: 3000 € per m²
- Moosach: 2300 € per m²
- Nymphenburg: 6600 € per m²
- Obergiesing: 3600 € per m²
- Obermenzing: 3300 € per m²
- Pasing: 3100 € per m²
- Schwabing: 7300 € per m²
- Sendling: 3300 € per m²
- Solln: 3600 € per m²
- Trudering: 2700 € per m²

Standard land value map for popular Munich districts

The information on average standard land values in the selected districts is based on our own research. We would like to point out that the standard land values quoted by us relate primarily to detached houses, semi-detached houses and terraced houses. Comparability with multi-family houses is not meaningful, as the floor area figures generally differ significantly here.

Tip

If you are planning to sell or buy a plot of land, Isar Estate will be happy to assist you with all questions relating to standard land values in Munich. With our expertise and our exclusive service concept, we will guide you safely through the entire selling or buying process.

Conclusion

The standard land value is an indispensable tool for real estate sellers and potential buyers when determining the value of land. It provides an objective basis for the realistic assessment of property values.

Frequently asked questions on the topic of standard land value

For which areas does the standard land value play an important role?

First and foremost, the standard land value is important for real estate valuation and therefore for buying and selling real estate. Standard land values are a guide for owners and prospective buyers to estimate the market value and conduct negotiations accordingly. However, they are also used to calculate property tax and for any inheritance and gift tax.

Are there regional differences in the standard land value?

Yes, the differences can even be considerable, as the standard land values depend on the location, local demand, infrastructure and the level of development of a region. In general, it can be said that values are higher in attractive cities and conurbations than in rural regions and small towns.

How is a property value determined using the standard land value?

The standard land value is first multiplied by the size of the property. For an exact determination, factors such as location, size and layout, development and possible uses are also taken into account.

Do standard land values also apply to developed properties?

Yes, but the buildings are not taken into account, so that when a property with buildings is sold
land with buildings, the building value is also calculated and then added to the land value totaled from the land value.

What are the differences between standard land value, land value and market value?

The standard land value simply refers to the average price per square meter for land in a particular area. In addition to the standard land value, other characteristics such as location and development are taken into account when determining the land value. The market value of a property comprises its entire market value including land, buildings and other facilities.

Is there a legal basis for standard land values?

Yes, the determination of standard land values is based on the provisions of the German Building Code. These oblige the expert committees to regularly determine standard land values and make them available to the public. The calculation is normally carried out every two years on the basis of actual purchase prices, although there may be regional variations in the intervals.

Where can I view standard land values?

The values are published in the so-called standard land value maps of the expert committees and can usually be viewed free of charge online on the websites of the responsible local and state authorities.

Do you have questions about the land register? Let an experienced real estate agent from Munich advise you. We at Isar Estate will listen to you carefully and give you individual recommendations for action. Get in touch with us. We look forward to getting to know you.

+49 (0) 89 901 697 46

info@isarestate.de

Disclaimer

Despite careful research and checking of the sources, the author assumes no liability for the accuracy and completeness of the information presented. In case of unclear legal and tax questions, it is advisable to consult a lawyer and/or tax advisor for clarification.

Author: Dipl.-Kfm. Christian Dürr

Isar Estate holds the image rights to this article.