Land Market Price vs Land Guideline Value

The latest offers, which I just searched for, are here near Düsseldorf at about 1.7 to 2 times the BRW. And then you still have to tear the house down. No idea if that will actually be paid in the end. Probably not fully, but the brokers are not stupid.

But I assumed that the standard land values were recorded anonymously based on real sales (land 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 be almost a one-year recording lag between the values of neighboring parcels.

In addition, the recording scheme and adjustments may vary depending on the federal state.

More precisely, the basis for the standard land values actually comes from the notarial contracts! An example regarding the discrepancy:

- BRW Zone 123 with a BRW of €220, adjacent new development area sold for €380-400
- large "building gap" sold for €523

This actually happened and I even know the buyer personally; the price is real (so there were no unknown circumstances). However, it is highly unlikely that the BRW will now be adjusted to €500 since only a single purchase exists. Without the new development area, nothing might happen at all; the new area probably causes a clearer increase. The problem with the BRW is mainly that there are often zones where nothing is sold for a long time, so you do not perceive the market development for this area and then suddenly much higher prices are paid.

The problem with the BRW is mainly that you often have zones where nothing is sold for a long time, so you don't really follow the market development for that area and then suddenly much higher prices are paid.

I can confirm that. Neighboring municipality, last new development area in the village about 10-15 years ago. Standard land value €70. Now a new development area is being created, plots are being sold for €200.

But somehow it is also possible to update the BRW when only existing properties are sold. Some appraisal committee must be active annually.

I can confirm that. Neighboring community, last new development area in the village about 10-15 years ago. Standard land value 70€. Now a new development area is being created, plots are being sold for 200€.

It is not much different with us either. In our municipality, most plots currently cost (Immo-Scout etc.) from 100€/sqm to 190€/sqm. But if you look at the standard land value map of Lower Saxony, there are still plot prices of 25€/sqm in some places. The problem is that the old "new development areas" are already at least 25 years+ old. It is often very noticeable that the values have not changed online on the map since 2013 (the standard land value has been displayed from 2013). At least for the older development areas. The sales prices from 2020 in the "current" new development area were just under 180€/sqm.

But somehow it is also possible to update the BRW when exclusively existing properties are sold. Some expert committee should be active there annually.

On what basis do you really want to calculate the land value for existing properties? A land value is indeed applied, but the actual portion paid for the land cannot really be determined and is probably lower than for undeveloped land.

As mentioned, nowadays it is quite common to simply raise it by a "scattering principle" based on the general price trends. To some extent, the developed market may also be factored in. However, it is difficult to keep a BRW up to date when in the end there are no sales, because only infill sites remain or new development areas are opened up (factory sites, etc.).

The expert committee meets annually on the BRWs and then also provides its expert opinion on them. ;-)