Develop land and then build on it

Hello everyone,

first of all, I would like to introduce myself, as I am completely new here. I am Phillip, just turned 27, and I come from the Hannover region.

I am fortunate that my family owns land, which is probably designated as a residential area in the land use plan. I would like to develop this land or have it developed and build multi-family houses on some of the plots. The rest is to be sold to families for single-family houses. At the moment, the area is still used as farmland.

Since I am completely new to this subject, I hope you can answer some questions for me. I have already read through some forums and derived my first steps from that. They are as follows:

1. Request access to the land use plan from the city to ensure that the land is indeed designated as potential residential area.

2. Submit a building permit application to the city.

Are these really the first steps, or do I need to do something else beforehand? Does a soil report need to be created before the building permit application? If the area is listed as a potential residential area in the land use plan, how quickly can a building permit be expected (there is currently a shortage of building plots in our city)?
I have read that the city always has a right of first refusal. Is that true? If so, how would the sale and development of the plots proceed? Is private development common for such a project, or is this usually the city's responsibility? Who actually creates a development plan? Is this always the city's task?

Sorry for the many questions, but I have hardly been able to find anything on this topic so far.

Thank you very much for all the answers in advance, and I hope I posted in the right section.

Have a nice rest of the Sunday.

Best regards,
Phillip

I have already read through several forums

Well, judging by your questions, either these forums had little to do with construction or "read" has to be replaced by "skimmed".

1. Apply to the city for an inspection of the land use plan

The land use plan is a public document. It can be viewed free of charge during the usual office hours of the administration without an application. You can also request a copy in writing, but that is expensive and IMO unnecessary.

which is probably designated as a residential area in the land use plan

Even if it concerns residential building land, the path to building land is still long and for someone who is "completely new to this subject," it cannot be described within the scope of a forum thread.

how quickly can one expect a building permit

A full professional with the best contacts in local politics might manage it in two years. There are supposedly municipalities that have not managed this in 20 years.

I have read that the city always has a right of first refusal. Is this true?

In your case, yes (see §24 Building Code).

If so, how would the sale and development of the plots proceed?

§12 Building Code. You create the development plan, develop and sell. If the municipality wants a plot, it steps into the purchase contract.

Is private development customary in such a project

No, but possible (§12 Building Code)

is this usually the city’s responsibility?

Yes, §123 Building Code.

Who actually creates a development plan?

Technically or legally?

Is this always the city’s responsibility?

No.

but I have hardly been able to find anything on this topic so far

Hard to believe. I recommend reading the Building Code, which describes the possibilities and procedures.

that my family owns land which is probably designated as a residential area in the land use plan. [...] Currently, the area is still used as farmland.

By "probably residential area" you probably mean "development land." The next stages of evolution are "building land" (after creating a development plan) and "building plot" (after development).

2. Submit a building permit application to the city.

That would be far too early if there is only the land use plan. What you can do is discuss a "project-related development plan" with the city. That means: you commission a draft development plan yourself, which your planner should ideally negotiate with the municipality in advance. If the municipality is under high pressure due to population growth, you might manage this by the time you are thirty—under ideal conditions (residential area next door, a dead-end street ends in front of your land). Conversely, i.e., if the nearest road is not a local street but a district or even a country road, and the municipality has no pressure to designate new building areas, then you will be over fifty before it happens.

Escroda has already provided you with the relevant legal paragraph references as usual.

Join the building department head’s party, practice playing golf or bowling worse than he does, and possibly also your drinking stamina; and learn to count in decades. Time will come; so will the (municipal) council.

P.S.: speaking of time: every ten years, you can fully utilize a gift tax exemption ;-)

Besides the available land, your idea requires liquid assets (because many preliminary costs will be incurred) and a certain amount of experience in how such things work (compensable by money)

and a certain experience in how something like that works

Respectively vigilance towards the sly ones who offer you their experiences.

or it requires an honest, open, fact-based conversation at the town hall with the head of the building department. Yes, I want to make money with it. So what, no one will blame you for that. Yes, the community has interests, let them be named. Yes, the development plan is at your expense, you also want the profit later. Talk. Karsten