Land Market Price vs Land Guideline Value

I am not sure if that is correct. The BRW indicates the value of an undeveloped plot, but I think the calculation also includes sales of developed plots. In these cases, the estimated building value is then deducted. Otherwise, many BRWs would not include any actual transactions at all (e.g., in city centers where the development has been constant for decades).

I can only speak for the area in which I work, and we do not use developed plots. For example, there is a completely different approach for city center areas. It may be that other appraisal committees do this differently, but generally, I rather do not believe this, or otherwise, one would have to check the guidelines to see if this is even "allowed." After all, the development is very individually priced by the buyer.

I can only speak for the area in which I am active and we do not include developed plots. For example, there is a completely different approach for downtown areas. It may be that other appraisal committees do it differently, but tendentially I rather doubt this or would otherwise have to check the guidelines to see if it is even "allowed." Because the development is priced very individually by the buyer.

Ah cool, I didn’t know you were an expert. How are BRW determined in areas where all plots are already developed? This applies to many areas, not only downtowns but also 10-20-year-old new development areas etc.

I can only speak for the area in which I am active, and we do not include developed properties. For example, there is a completely different approach for downtown areas. It may be that other appraisal committees do it differently, but I tend to believe otherwise, or I would have to check the guidelines to see if it is even "allowed." Since the development is very individually priced by the buyer.

Very good. Someone from the field :-) Could you explain to me how the BRW in an area (near Berlin) could have fallen even though market prices are skyrocketing? Also last year, plots were sold (according to usual sales apps) for 200 - 250 € / sqm. According to BORIS, however, the BRW fell from 120 € / sqm to 100 € / sqm. A purely speculative answer is completely sufficient; I understand that you cannot know exactly :cool:

Very good. Someone who knows their stuff :) Could you explain to me how the BRW in an area (near Berlin) could have fallen, although market prices are skyrocketing? Even last year, plots (according to the usual sales apps) were sold for 200 - 250 € / sqm. According to BORIS, however, the BRW fell from 120 € / sqm to 100 € / sqm. A purely speculative answer is perfectly fine, I understand that you can’t know for sure :cool:

Be careful, the sales apps only initially reflect the asking prices they find online. Of course, it is still a bit strange, but you never know what happens to the asking prices or what might be behind them. One factor that definitely plays a role in BRW is that individual very high or very low prices are often initially removed. If the appraisal committee lowers the BRW, however, it can be assumed that there were sales pointing in that direction! The fact is that the committee knows the real prices, the sales apps only know the asking prices at best. The appraisal committees have only the problem that often only a few sales exist, which means for years there is nothing and suddenly a significantly higher price in a zone, and then the committees are often rather cautious regarding significant adjustments.

Ah cool, didn’t know you are an expert. How is BRW determined in areas where all plots are already built on? This applies to many areas, not only city centers but also 10-20 year old new development areas etc.

So, in our case it works via a kind of rent price model, at least for the inner city area. This was developed a long time ago and then anchored in the back then "best spot." Since then, BRW is basically reflected through changes in rents and possibly usage since there are virtually no sales.

In old new development areas, village locations etc. without sales, they have meanwhile moved to at least taking into account the general market development based on the purchases that exist there in the municipality. So, if I say +12% in the purchase cases you have in the area, you would possibly increase the BRW there by 10%, which is always somewhat left to the expert’s "feeling."

Thank you for your feedback so far.

The mentioned reservations it depends are of course correct.

But I assumed that the standard land values were recorded anonymously based on real sales (property transfer tax registration?). This should already include the reservations location, quality, popularity of the area, etc. Nevertheless, a discrepancy remains.

Furthermore, the values were probably recorded on different reference dates, so there could well be almost a one-year recording offset between the values of neighboring plots.

In addition, the recording scheme and corrections may vary by region.

Nevertheless, the market price almost always seems to be significantly above the standard land value.

Presumably, one would need to have many values available for comparison in order to recognize a clear trend.

It would still be nice if further readers could provide their values here (preferably stating the federal state).

My impression of approximately 1.2 initially seems to be clearly too low. It looks more like 1.4 ... 1.5.

I am curious when the bubble will burst; something similar still existed, for example, until about 8 years ago in Spain.

So for me it's northern BaWü. Latest listing: mini building gap for a semi-detached house (planned) offered for over 1,100 €/sqm. In that town, a new development area starting at 330 €/sqm was only put up for sale at the end of last year. Building plots with highest bid procedure were apparently around 600 €. But this really takes the cake here. I simply can't imagine who would be willing to pay that.