Reference current construction prices / Build now or wait?

Hello everyone,

we have unexpectedly received the news that we can purchase a plot of land from the municipality in our current place of residence (greater Stuttgart area). We have submitted our priority list and will find out in the next 2-3 weeks which plot it will specifically be. (400-600sqm). We will definitely buy a plot, as it is extremely difficult to secure a building plot in our residential area.

In the first step, we would like to have a rough idea of the prices in order to calculate how much we would need to finance. Often 3000€/sqm is mentioned as a reference point, but I cannot assess how representative this amount currently is. For us, it should be about 190sqm plus a basement with a granny flat.

We are open to both solid construction and prefabricated houses.

I would be very happy to receive tips from you experienced ones on how we should proceed regarding the construction cost estimation. For example, should we go to local construction companies with our wishes and simultaneously inquire with the prefabricated house manufacturers, or is it better to consult an architect?

We are also wondering whether we should indeed start building the house immediately, or better wait another year to see how the prices develop. We currently live in a paid-off own home in the village (which is permanently too small for us, so we will sell the semi-detached house and build a single-family house) and have three years to start building the house after acquiring the plot. What is your assessment regarding the price development?

Best regards

Mausimaus

In Stuttgart, you can expect more. A basement living space is comparable to above-ground living space. As always, this also depends heavily on the planned standard and possible self-performed work.

No one can predict the future, but prices and interest rates are likely slowly reaching their peak. However, they probably won't drop significantly, so I wouldn't wait for cheaper prices.

In Stuttgart you can rather expect more. Basement living space is comparable to above-ground living space. As always, this also depends heavily on the planned standard and possible personal contributions

Nobody can predict the future, but prices and interest rates have likely reached their peak slowly. However, it will hardly go down significantly, so I wouldn’t wait for cheaper prices

Thank you very much for your input. I actually thought that it is even more expensive around Stuttgart. Friends also recommended general contractors from the Alb, we will definitely inquire with them as well.

The interest rate development is not so crucial for us, as we need little or no credit. We were just unsure whether construction prices would drop again when the order books are emptier. Here it is definitely the case that the craftsmen already notice that demand is clearly declining.

I am really very curious about the first offers.

Declining demand rather means that the excesses of the past are no longer present. However, I would not expect prices to fall significantly below 3000€/sqm again.

The interest rate development is not so crucial for us, as we need no / only little credit.

That is a fallacy. Your old house also needs to be bought by someone, and that person usually needs a loan.

Backward demand rather means that the excesses of the past are no longer there. However, I would not expect prices to fall significantly below 3000€/sqm again.

That is a fallacy. Someone still has to buy your old house, and they usually need a loan.

That is a good point, you are absolutely right!

The timeline between purchasing the plot and moving in is about 2 years, as waiting and hoping for a price drop can quickly backfire, see the past 3 years. I would take the plot now and plan and build without time pressure. The plot will set a framework for you through the development plan regarding area, floors, roof shapes, etc.