Expensive Real Estate Purchase by Bayern for Building Projects - Highest Land Construction Costs Found in Bavaria Region
In Bavaria, the most expensive locations for building land in 2024 continue to be centered around Munich and its surroundings, reflecting strong economic conditions, high demand, and quality of life factors typical for the region. According to recent data, the average price for a square meter of developable land in Upper Bavaria, including Munich, stands at 978 euros, making it the highest in the state [2].
While prices in other parts of Bavaria vary, areas like Upper Franconia have an average of 125 euros per square meter, the Lower Franconia region averages 175 euros, and Swabia and the Upper Palatinate have averages of 238 euros and 192 euros, respectively. Notably, Upper Bavaria, excluding Munich, has an average price of 633 euros, which is 342 euros less than the average price in Upper Bavaria including Munich [2].
Comparing 2024 to previous years, prices in related real estate markets in Germany show a mixed trend. For instance, in Prenzlauer Berg, Berlin, prices per square meter had sharp ups and downs, with a rebound in 2024 after previous dips. Similarly, high-demand areas like Munich likely follow a similar overall upward trajectory given the continuing strong demand for land and property in Bavaria [1].
In 2023, the average price for a square meter of developable land in Bavaria was 381 euros, representing a decrease from the previous year (430 euros) [3]. Additionally, the number of developable plots sold in Bavaria in 2024 was 8,078, an increase of 7.8% from the previous year [3].
However, the development of paid prices for developable land in Bavaria must be interpreted with caution due to changes in the mix of sold plots [3]. The regional government in Upper Franconia is grappling with population decline in some regions [3].
In summary, while Munich and its surroundings remain the priciest locations for building land in Bavaria in 2024, other areas in the state offer more affordable options. However, the strong demand for land and property in Bavaria is likely to continue driving up prices in high-demand areas, as seen in the recovery trend in 2024 in markets like Berlin Prenzlauer Berg [1].
To address the escalating land prices, particularly in Munich and its surroundings, the local community is considering the implementation of a policy that encourages vocational training in the construction industry, as a means to nurture a skilled workforce and potentially lower costs through increased productivity [1]. In light of the financial implications of investing in real-estate, and considering the increasing demand for vocational training in industries like construction, finance experts are suggesting that potential investors consider vocational training programs as a valuable addition to their investment portfolio [1].
