Construction costs for a multi-family house with 10 residential units, fully basemented

P.S. The prices I mentioned are calculations including a buffer for miscellaneous/unforeseen items

Would you like to reveal the factor for that, and is it different between Munich and Mannheim (and between 2021 and 2023)? Given the current political situation (I'm not even talking about two wars in the news, a three-party coalition would already be reason enough for me as an investor to be cautious or at least diversify risks), there surely must be a significant turbulence coefficient included...

Would you like to reveal the factor there, and is it different between Munich and Mannheim (and between 2021 and 2023)? Given the current political situation (I'm not even talking about two wars in the news, a three-party coalition alone would be reason enough for me as an investor to be cautious or at least diversify risks), there must already be a significant turbulence coefficient included...

First of all, we always calculate with a cost buffer of 10% on the 300/400 costs. As a bank, however, one is - as always - overly cautious and an additional buffer is demanded from the client by a cost overrun guarantee of another 10% of the aforementioned costs. Either the customer is inherently good for it or he must deposit the money. The price increases from 2021-2023 are roughly between €1,000/sqm - €1,500/sqm. These have very often been the general contractor's profits or the massive material price increases. Not to mention the plots of land purchased at prices that, from today's perspective, are far too expensive.

What exactly do you intend to do?

Rental, investment, tax saving model?

Are you doing financing or do you have the amount in cash? Such properties are already being traded at significant discounts.

I have a similar property myself and could give you a few tips.

I didn’t expect so much feedback. I haven’t written everything down because long texts usually aren’t read properly, as has already proven (2.5 stories). I’ll try to address everything:

There is a floor plan that is not final but has been made available to all companies for the preparation of quotes. Ground area 22.5m x 14.5m rectangular 1x basement apartment + technical + storage rooms in the cellar, since the slope (3.5m over 45m length) has to be retained anyway, almost all companies found living space more sensible than, for example, garages in the basement Three residential units each (60m²-90m²) on the ground floor, first floor and attic, whereby the apartments in the attic are somewhat smaller An elevator must be provided; according to the architect, it is mandatory here for more than 6 residential units Most companies suggest ETICS, but there were also 2 or 3 where there was no great price advantage compared to clinker bricks; most general contractors are originally shell builders. Standard means material tiles/floor coverings up to €25/m², no special formats, simple bathroom equipment, no guest bathrooms, no ceiling spots, no multimedia, ... I find the construction descriptions I received were all very similar.

The house should be fully rented out. 10 residential units mainly came about due to the KFW40 subsidy; I initially started with 6 units and it gradually got bigger because companies told me more area = cheaper price per m².

With current rents (not big city), the house, at 665m² without the plot, but with all other costs incurred and I mean really all! should cost €1,800,000, ready to move in. This is also financeable with appropriate securities. The plot is equity, everything was already agreed with the bank, but was initially discarded due to the cancellation of the KFW.

Maybe it was simply wrong to go directly to the general contractors with the floor plan. The first architect wanted €120,000, which was a bit much for “I’ll build if it pays off, otherwise the plot just remains unused.” But that was also during the absolute peak and should be seen as a deterrent offer. Meanwhile, another architect is involved; his proposal and an offer are expected next week.

But I can see already, apparently that is unrealistic, so that helps me. Then I just wonder why the companies are making me offers at all. It’s not like I’m hiding the budget and the living area, shape or whatever suddenly changes.

There is a floor plan that is not final, but was made available to all companies for the purpose of preparing a quote. [...] Maybe it was simply wrong to go directly to the general contractors with the floor plan. The first architect wanted €120,000, which was a bit much for me for "I will build if it pays off, otherwise the plot will just lie there".

I will try to summarize what I hopefully partially misunderstood. So you have a budget of 1.8 million, for which you want to develop an existing plot with a multi-family house. An architect wanted a higher fee for the planning than the exploration of your possibilities was worth to you. Subsequently, you created a floor plan yourself and sent it to some general contractors asking for an offer. You originally wanted to fit 6 residential units in — I assume in a symmetrical two-wing building, all three floors identical, with the attic floor being an effective partial floor and therefore smaller. Then the general contractors suggested to you to include an apartment in the basement as well, not only garages, and to have more apartments per floor. So far that would be the usual beginning of a pitiful multi-family beginner project story, you actually need professional help from an independent consultant. I wish that one of my colleagues has time for you — I myself am rather there for people wanting to build single-family homes and frankly have no interest in badly and botched started projects, regarding the effort/joy balance and such.

An elevator must be provided, according to the architect it is mandatory here for more than 6 residential units

That is a misunderstanding or an abbreviated statement. Not an "elevator," but "accessibility" of a portion of the apartments is mandatory from a certain size of the residential complex. Its residents must also be able to reach the common facilities, which is shortened to "elevator" as mentioned. An elevator itself is not yet mandatory in three (regardless if all full) floors and with all the bells and whistles also an uneconomical factor.

Most companies suggest ETICS, but there were also 2 or 3 where there is no big price advantage compared to brick cladding; most general contractors are originally shell builders. Standard means materials like tiles/floor coverings up to €25/m², no special formats, simple bathroom fixtures, no guest bathrooms, no ceiling spotlights, no multimedia,... I find the construction descriptions were all very similar that I received The house is to be fully rented. 10 residential units mainly came through the KFW40 subsidy, I started at 6 units and it got bigger because companies told me more area = cheaper price per m².

That all sounds very much like unprofessional advice from one-size-fits-all construction contractors who predominantly if not exclusively work for non-commercial residential builders. Undifferentiated equipment is not done by a professional, nor is the consideration of brick cladding under surcharge aspects (like "look how capable we are, it costs only a little extra"). Brick cladding is an economic issue, especially in construction for own rental. Also, the mindset of the unit price becoming cheaper with volume is a typical farmer’s way of thinking. As said, I myself will probably not take on your case but at least go to professionals. And ask to see their reference buildings — the more often built, the better.

since the slope (3.5m over 45m length) has to be retained anyway,

From which relative position of the contour lines to the house axis are we even talking here?

I will try to summarize what I hopefully partially misunderstood. So you have a budget of 1.8 million, for which you want to develop an existing plot with a multi-family house. An architect wanted a higher fee for the planning than you thought your possibilities were worth. As a result, you designed a floor plan yourself and sent it to some general contractors with a request for an offer. Originally, you wanted to fit 6 residential units in – I assume in a symmetrical two-wing design, all three floors the same, with the non-full-floor attic effectively smaller there. Then the GCs suggested to accommodate an apartment in the basement in addition to garages and to have more apartments per floor. So far, this would be the usual start of a pitiful multi-family house beginner project history, you really need professional help from an independent consultant. I wish that one of my colleagues has time for you – I myself am more for private home builders, and frankly, I have no interest in projects that start off crooked and botched, because of effort/joy balance and so on.

That actually sums it up quite well. But have it drawn. Help from? Construction consulting? Architect? I think I already asked you.

This is a misunderstanding or a shortened representation. Not "elevator," but "accessibility" of a portion of the apartments is mandatory from a certain size of the housing complex. Its residents must also be able to reach the communal facilities, which is shortened as "elevator" as said. An elevator is not mandatory per se with three floors (regardless if all full floors) and, with all the trimmings, also an uneconomical factor.

Yes, that was certainly expressed in a simplified way, but it was said that the elevator must be planned. If I understood correctly, the shaft must definitely be built; whether I install an elevator right away would be up to me.

This all sounds very much like unprofessional advice from one-stop construction contractors who mostly or almost exclusively work for non-commercial residential builders. No professional does undifferentiated fittings, nor considers facing bricks from the surcharge perspective (like "look how capable we are, it only costs a little extra"). Facing bricks are an economic issue, especially for owner rental construction. Also, the idea that the unit price gets cheaper with volume is a typical farmer’s mindset. As I said, I personally will not take on your case, but at least go to professionals. And ask to see their reference buildings – the more often built, the better.

They were all local companies, architects and construction consultants with experience in such projects. The statements were always very similar in my opinion. Many of them also build such properties for themselves, usually as condominiums.

From which relative position of the contour lines to the house axis are we even talking about?

That overwhelms me as a beginner. Access, parking, and basement slab would all be roughly one level. The basement then increasingly disappears into the slope.

I don't want to pursue this further here, my question has been answered. I will not build significantly under €3,000/m², and with that, that is settled under the current boundary conditions. Many thanks