ᐅ Building a house with two or three residential units?

Good morning,

I am currently considering constructing a building on an existing plot that is not very large.

Due to the size and the parking requirements (local regulations), a maximum of three residential units are possible.

I am concerned about the additional costs resulting from the stricter regulations for a building with three residential units (multi-family house).

Does anyone here have experience with this? Is the extra effort worth it?

Thank you in advance for your feedback.

When it comes to the question of whether it’s worth it, it’s really a matter of return on investment.
- Location
- Demand
- Rent
- Costs
And so on.

Two units of 100 sqm (1,076 sq ft) in a rural area, or three units of 40 sqm (430 sq ft) in a university town? These are the kinds of questions you need to consider.

Since you provide exactly zero information, my crystal ball gives exactly zero answers.

Hello Nordanney,

sorry, I hadn’t considered that.

Building student or holiday apartments is not attractive for us.

The plot can accommodate residential units between 65 and 90 sqm (700 and 970 sq ft) per floor. Based on the local housing market, a net rent of 12 euros/sqm (1.1 dollars/sq ft) is planned or calculated.

The project is located in the commuter belt around Karlsruhe.

Thanks for your feedback

From a financial perspective, building a house hardly seems worthwhile anymore. If you are able and willing to invest money, then the additional expenses play a minor role.

MFH2026 schrieb:

The calculation is based on the rental market in our area, with a net rent of 12 euros/sqm (12 euros/sqft).

In that case, building for rental purposes hardly makes financial sense.

I would also be surprised if it were worth it for you, since construction costs have increased more significantly than rental prices.

Especially in the areas close to Karlsruhe, depending on the location, rental prices can easily be twice as high. €12/sqm (about $12/sqft) is already considered high-end new construction in more expensive neighborhoods.