Over the past decade, land prices for construction in Germany have seen substantial increases, reaching near tenfold hikes in some areas. This significant rise was particularly evident in Rostock (Mecklenburg-Vorpommern), Darmstadt (Hessen), and Hamm (North Rhine-Westphalia).
Information detailing the highest increases in building land prices for independent municipalities between 2015 and 2024 was revealed through the federal government’s response to an inquiry by the left-wing politician Caren Lay, which was reported by the newspapers of the “Redaktionsnetzwerk Deutschland”.
When examining the price increase for building land suitable for multi-family houses in a medium location, Rostock leads the way. In the Hanseatic city, the purchase price for residential building plots jumped from 60 euros to 543 euros per square meter-an increase of 805 percent. Darmstadt ranks second, where the price rose by 167 percent. Hamm recorded a 159 percent increase over the same period. Other cities mentioned by the Federal Ministry of Building regarding large price increases for multi-family house land include Brandenburg an der Havel, Freiburg, Frankfurt am Main, Berlin, Erlangen, Rosenheim, Emden, and Kaufbeuren.
For the trend in building land prices for owner-occupied homes, Darmstadt again leads, with an increase of 167 percent. A similarly strong development was noted in Fürth (160 percent) and Chemnitz (155 percent). Seven other cities with high increases include Berlin, Jena, Freiburg, Braunschweig, Mainz, Rosenheim, and Kaufbeuren.
Politician Caren Lay, of the Left party, is calling for measures to curb speculation. Speaking to the RND, the housing policy spokesperson for the progressive parliamentary group stated, “The curb must be placed on land speculation because we need more affordable apartments”. She described the “explosion” of land prices as “unsocial and dangerous” noting that “those who own large amounts of land become wealthier simply by waiting”.
Among her proposals, she suggested looking at the model of Vienna: “Municipalities must be granted the ability to cap the land prices intended for social housing” she demanded.
