Statistics - Fewer building plots sold - lower prices paid
For those who purchased building-ready land in Bavaria last year, they paid on average significantly less. According to the Bavarian Statistical Office, the average price paid was 340 Euro per square meter in 2023, which is around 90 Euro less than the previous year. However, fewer land transactions took place: the number of sales decreased from approximately 11,000 to 7,300, and the sold area dropped from 9.7 to 6.1 million square meters. Compared to 2021, the decline is even more pronounced: in 2021, 16 million square meters were sold for around 6 billion Euro, while in 2023, only about 2 billion Euro were spent on roughly 2 million square meters.
The significant decline can be attributed to the substantial increase in interest rates, which makes financing land purchases more challenging. The price development should be interpreted with caution, as the Bavarian Statistical Office emphasizes: the composition of sold land parcels changes, limiting comparability.
Therefore, only particularly attractively priced plots of land may have found buyers in the previous year - or landowners who were holding out for higher prices.
Despite these limitations, the Bavarian Statistical Office also points to considerable price differences. For instance, a square meter of building-ready land in Upper Bavaria was sold on average for 925 Euro, while in Upper Franconia, it was only 124 Euro. Upper Bavaria stands out significantly in the statistics. The second most expensive administrative district, Mittelfranken, comes in at 266 Euro, which is not even a third of the price. Following are Swabia with 260, Lower Bavaria with 199, the Upper Palatinate and Lower Palatinate with 177, and Unterfranken with 166.
The special role of Upper Bavaria is not only due to the particularly expensive Munich: even when the state capital is excluded, Upper Bavaria remains the most expensive region with 613 Euro.
At the level of districts and free cities, Munich was once again the most expensive in 2023. An average of 2,868 Euro was paid for transactions there - much less than in the previous year. The cheapest was Rhön-Grabfeld with around 50 Euro and only minimal change. The values at this level should be treated with special caution due to low transaction numbers.
- Interested buyers looking for real estate opportunities in Upper Franconia might find more affordable building-ready land compared to Upper Bavaria, as statistics show a significant price difference between the two regions.
- The Regional Office in Fürth might encounter a higher demand for building-ready land due to its lower average price compared to Upper Bavaria, where the average price reaches 925 Euro per square meter.
- When comparing the average price for building-ready land in Bavaria's administrative districts and free cities, it is clear that Munich, located in Upper Bavaria, has the highest average price at 2,868 Euro, while Fürth in Upper Franconia has a much lower average price.
- Real estate investors searching for properties in Bavaria might consider the Regional Office in Munich, but they should be aware that the city has the highest average price in the region, and potential savings could be found in less expensive regions like Upper Franconia.
- Regarding the regional differences in real estate prices, investors should consider the Bau-land, a term used in Bavaria to refer to federal states or regions, with Upper Bavaria representing the most expensive Bau-land, whereas Upper Franconia offers more affordable options.
