ᐅ Planning to build a house: what budget should you expect nowadays?

Hello everyone,

I would like to get a rough estimate in advance of what we might expect for a future house.

In our former rural hometown, building plots will soon be developed. Due to the current situation, almost all previously reserved plots have become available again.

We have an appointment soon to discuss the building plots. They are all between 500-650 sqm (5382-6997 sq ft) in size and are supposed to cost between €160-180 (per sqm), which is quite high for this location.

Is it still possible to negotiate prices, or are the local authorities strict? We are considering buying two plots to reach about 1000 sqm (10,764 sq ft) in total.

The plot would be purchased without taking out a loan.

What are the current prices for a single-family house with two full floors and a basement in a higher-quality finish?

Since I am currently self-employed, my income fluctuates significantly. The business is planned to be moved into the basement. Of course, this still needs to be approved by the local authority to see if it is allowed.

It is an online shop with current pre-tax profits of €400,000 annually.

Maybe you can give me a brief outlook on the upcoming project.

Thank you

About 3000 euros per square meter if you have almost everything done by professionals. But it can be significantly cheaper with your own labor. For my project, I am at around 1300 euros per square meter.

maulwurf79 schrieb:

About 3000 euros per square meter if you have almost everything done by others. But it can be significantly cheaper with your own work. For me, it’s about 1300 euros per square meter.

Even though I’m an electronics engineer, I won’t have the time for any DIY work.

rulor1992 schrieb:

We have an appointment soon to discuss the building plots.
All of them are between 500-650 sqm (5400-7000 sq ft) in size and are supposed to cost between 160€-180€ per sqm, which is already quite high for this location.
Is it still possible to negotiate prices, or are the local authorities inflexible here?
Our idea would even be to buy two plots to reach about 1000 sqm (11,000 sq ft).

Even 500 sqm (5400 sq ft) is well above average by today’s standards, and I don’t believe you’ll get the opportunity to buy two plots. First, this usually conflicts with the goals (and fiscal constraints) of the municipalities, and second, the plot sizes are not arbitrary. So expect that the municipality is not interested in allowing you a “double-size” plot. On prices, the mayor’s hands are tied as well — the asking prices are already a political compromise, and only in a one-party village without opposition would there be no pushback (but still within certain limits).

rulor1992 schrieb:

Since I’m currently self-employed, my income fluctuates significantly. The business is intended to be moved to the basement.
Of course, this needs to be approved by the municipality to make sure it is permitted.
It’s an online shop with pre-tax profits currently around 400,000€ (about $440,000) per year.

“Online shop” can mean many things—from dropshipping to having neighbors dealing with seven delivery vans per day because of you. The profits suggest you might soon need staff—so keep in mind that workplace regulations also apply to basements (and that this can drive the basement space to full above-ground market rental levels). However, a non-disruptive business, including as a sole proprietorship, could be suitable for a commercial zone (though your business manager’s residence would depend on maintaining self-employment). In that case, negotiating the plot price might be a different conversation.

rulor1992 schrieb:

What are the current prices for a single-family house with two full floors plus a basement, with upscale finishes?

The range is quite broad—with a rough ballpark around 3000€ (about $3,300) per sqm (about 30 sq ft). If we share the same definition of “upscale finished,” check companies like Viebrockhaus / Gussek Haus / Weberhaus and similar (construction method doesn’t matter) to see their pricing. Local builders will likely be in a similar range. The construction costs between “one-and-a-half-story” homes and “town villas” are practically the same. What really drives costs are polygonal floor plans combined with multiple hipped gable roofs.

rulor1992 schrieb:

Even though I’m an electronics technician, I won’t have time for DIY work.

Premium providers mostly avoid offering partial DIY options. The three thousand euros per sqm apply for full-service packages.

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11ant schrieb:

Even 500 sqm (5,380 sq ft) is well above average by today’s standards, and I don’t believe in the possibility of acquiring two adjacent plots at once. Firstly, this generally conflicts with the goals (and municipal budget constraints) of local authorities, and secondly, the plot sizes are not arbitrary. So assume the municipality is not interested in offering you a “double portion” plot. Price-wise, the mayor’s hands are tied, as the asking prices are a political outcome, and only in a one-party town without any opposition would there be no resistance (though even then, within limits).

“Online shop” can mean many things, from dropshipping to a scenario where neighbors have to deal with seven delivery vans per day. The profit margin suggests you might soon need staff—keep in mind that workplace regulations also apply to basements (and that a basement can then command above-ground price levels). However, a non-disruptive business, even as a sole proprietorship, could be eligible for location in an industrial, commercial, or business park (your manager’s apartment would then depend on maintaining independent operation), and in that case, negotiating a concession on the plot price would be a different matter.

“Range” – with a rough estimate of three thousand euros per square meter. If we understand “upscale fittings” the same way, you can check Viebrockhaus / Gussek Haus / Weberhaus and similar companies (the construction method doesn’t matter) for their price expectations. Local builders won’t differ significantly. Construction costs between one-and-a-half-story houses and “urban villas” are practically identical. What drives costs up are polygonal floor plans combined with multiple captain’s gable hipped roofs.

Premium providers generally refrain from including extensive owner-performed work. The three thousand euros applies to “full service.”

Thank you for the detailed answer.
I hadn’t considered that. I had assumed the municipality would be happy to sell the plots.

There won’t be any staff. Everything will be handled by family.
If it ever comes to that, a separate warehouse would be built somewhere.
But it’s best to discuss that with the responsible authority.
Living in an industrial or business park wouldn’t be ideal at this point…

The business is currently carried out in the same municipality, in a residential area (parents’ house).

I’m curious to see what comes out of the discussions.
I can well imagine 200 sqm (2,150 sq ft) with a basement.

600,000€ (about 650,000 USD) would still be feasible without the land, maybe 800,000€ (about 870,000 USD).

Today, I overheard part of an interview with a board member of the architects’ chamber. He mentioned that the standard construction, which until 2021 could be built in rural areas for 2500 euros per square meter, now costs around 3000 euros per square meter. For 2023, increases of up to 20% are expected, depending on collective bargaining rounds and inflation developments. For higher-end standards, I would currently estimate about 3500 euros per square meter, especially in Bavaria.