House calculation more expensive than expected. Is this realistic?

Hello everyone,

I just came across this great forum through a Google search and hope for many informative discussion rounds.

First about the general situation:
We own a plot of land in the [Region-Mittelhessen] area on which there is still an old vacant building. This is now to be demolished in the near future to be able to build a new residential house there.
So far so good... Due to the complex location of the plot (border development etc.) we have brought in an architect (extremely competent) and had a building plan created.

The design was created to our full satisfaction.
About 300 m² of living space should be created, divided into 3 individual apartments.
So apartment 1 on the ground floor, apartment 2 on the 1st floor and apartment 3 on the 2nd floor + attic (a pitched roof is to be used).

Now, after a month we have received the calculation and are somewhat disappointed. According to the plan, the costs amount to about €830,000.
However, we expected around €450,000. We would like to contribute a lot of our own work. But even if that were the case, it does not even seem remotely realistic to me to get from the calculated amount to the desired amount (I am aware that it is almost twice as expensive as desired).

I see that everything is included in the calculation... From the sanitary installation to the last tile. The prices are each set quite high. Therefore my question: How realistic is such a calculation? When I hear that a 3 million project creates 34 apartments, I really wonder whether the costs are fairly divided.

I look forward to your answers... many thanks

Best regards

Actually, you first mark out where the journey is going before the design... Are the 830 including planning, incidental costs, equipment, etc.? If yes, then certainly still a bit high, but not unrealistic. The architect should have realized with the figure "300m²" that 450 is also unrealistic even with a lot of personal contribution.

The number is perhaps a bit high but not unrealistic. 3 residential units fully equipped is roughly comparable to 3 small houses. That means 3 x 100m² x 2000,-€ = 600k Euros. Plus ancillary costs, fees, etc. I would estimate between 680 and 700k Euros. Of course, it also depends heavily on the region. In Munich, it can easily be 850k Euros. However, I am not familiar with central Hesse.

But this is only the first offer, right? So ask the next general contractor! There is definitely room for negotiation.

I completely understand. But when I think about it, with a house I also have costs like landscaping, etc. Accordingly, I didn’t think I would have to multiply everything by *3.5. However, everything over 800,000 euros seems too high to me. It should really be built to the extent that the owner can then paint the walls themselves, lay floors, install bathrooms, etc. Is there a difference between a ready-to-move-in and a fully equipped apartment? These are condominiums, so the equipment (like floors, etc.) should be omitted.

But that’s just the first offer, right? So ask the next general contractor! There’s definitely room for negotiation.

What exactly is meant by a GU?

GU = General Contractor

You can negotiate the level of completion individually. The more you leave out, the cheaper - logically.

When it comes to a multi-family house, one must consider not only the 300 sqm of living space but also the necessary utility areas, which are not free of cost. Staircases, hallways, basement rooms, connection/technical room, laundry room, bicycle cellar. In addition, residential construction has different requirements regarding soundproofing, fire protection, escape routes. Who would seriously want to paint a multi-family house themselves and install flooring? Just calculate the time effort against the loss of rent. 450K€ also seems unrealistic to me.