Cheap building land from the city

Land prices go up and up. Long lease and local models are cheaper. But be careful: here too there are pitfalls.

View of house facades in the new old town of Frankfurt am Main

Dhe Frankfurt old town, which was destroyed in the war, has become a gem. 35 houses were partially rebuilt true to the original and opened a few months ago. There are now shops, restaurants, small museums and some condominiums. The properties are something special, not just historically and architecturally. They also have multiple owners. Because the city still owns the land, while the buildings and apartments on it mostly belong to private buyers. The municipality has only leased the land through so-called heritable building rights.

In Frankfurt it has been customary for more than ten years for the city to assign its own land almost exclusively with heritable building rights. There are currently around 4,500 such rights there. Other cities have also rediscovered this instrument in recent months. They want to give up their space primarily or exclusively in this way in the future. Including large cities such as Düsseldorf, Hamburg or Leipzig or medium-sized cities such as Göttingen and Freiburg. Cologne is thinking about it. This is practiced even in smaller towns like Dachau near Munich. Wolfsburg currently has the most heritable building rights in Germany with around 9,000.