Building land prices top all other costs since 2000
At 130%, building land prices have been the biggest price driver on the German real estate market in the last 20 years, even ahead of construction and transaction costs, which have also increased. This is the result of a study on the 71 most populous German cities by the Swiss investment management firm Empira. Average building land prices in Germany rose from €76/sqm to €175/sqm between 2000 and 2017, rising especially sharply from 2011 onwards. In absolute figures, Munich, at over €2,400/sqm, was recently topped the list nationwide, but Düsseldorf’s rise of 450% was the strongest in the last 20 years. The difference between prices in cities with the highest purchasing power and those with medium or low purchasing power has been growing since 2012, reaching €585/sqm in 2017. In 1997, this difference had been €233/sqm.
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