What is the Land Value Standard (Bodenrichtwert)?

An Important Factor for Property Valuation

Key Facts

• The land value standard (Bodenrichtwert) is an official average value derived from collected sale prices.

• This value is regularly updated by an expert committee and indicates the value of land per square meter.

How Much is My Property Worth?

If you are asking this question, you cannot avoid the topic of the land value standard.
The Bodenrichtwert represents an average value for plots in a specific region.
Here’s what it indicates, how it is calculated, and where you can access it.

What is the Bodenrichtwert?

• The Bodenrichtwert is an official average value calculated from actual land sale prices.

• It serves as a reference value: only a guideline, the actual land value can differ significantly.

• In property valuation, it is used when the land value cannot be determined via the comparative method.

When Do You Need the Bodenrichtwert?

• Selling a built or unbuilt plot to determine its value

• Inheritance, to assess the value of inherited property

• Property valuation in case of divorce

• For tax purposes: calculating property tax, gift tax, and inheritance tax

Where Can I Access the Bodenrichtwert?

• Available from the expert committee of your local municipality. Fees may apply and vary by federal state.

• Some states also provide online access.

Role of the Bodenrichtwert in House Sales

• Location is crucial in selling property.

• Property value increases are mostly due to land value appreciation, not the building itself.

• Buildings depreciate over time; only modernization can maintain their value.

• Land value rises with demand; a desirable plot can enhance a less attractive building.

• Conversely, no matter how high-quality a building is, a poor location limits its value.

• The Bodenrichtwert gives a rough estimate for property price; precise valuation requires a full market value assessment.

How is the Bodenrichtwert Determined?

• Local expert committees collect sales data and calculate an average value.

• Updated at least every two years depending on the state and published in maps or tables.

• Factors influencing land value include:

  • Location

  • Shape and size of the plot

  • Soil quality

  • Level of development

  • Vegetation

  • Building possibilities

Calculating Land Value Using the Bodenrichtwert

• The Bodenrichtwert is given per square meter.

• Total land value = plot area × Bodenrichtwert
  Formula:
  Bodenrichtwert (€ per m²) * plot area (m²) = land value (€)

Example:

• Bodenrichtwert: €120/m²

• Plot area: 400 m²

• Land value = 120 × 400 = €48,000

Role in Taxation

• When buying a property, you acquire both the building and the land.

• Building costs can be depreciated annually; land costs cannot.

• Tax authorities use the Bodenrichtwert to allocate the portion of the purchase price attributable to land.

Example:

• Purchase a rented multi-family house for €300,000

• Using the Bodenrichtwert, €50,000 is allocated to land

• Depreciation applies only to €250,000 for the building over 40–50 years

Difference Between Bodenrichtwert and Market Value (Verkehrswert)

• Bodenrichtwert: average land price, used for tax and reference, excludes buildings.

• Verkehrswert: market value or actual value including building condition and features.