Over the past decade, the costs of building land in Germany have seen a significant increase, reaching nearly tenfold at their peak. This dramatic rise was particularly pronounced in Rostock (Mecklenburg-Vorpommern), Darmstadt (Hessen), and Hamm (North Rhine-Westphalia). This information stems from a response by the federal government to an inquiry made by the Left Party politician Caren Lay, as reported by the newspapers of the “Redaktionsnetzwerk Deutschland”. The report details the areas where the price increase for building land in independent cities was highest between 2015 and 2024.
Focusing on the increase in building land prices for mid-range multi-family housing, Rostock stands out as the top performer. In the Hanseatic city, the purchase price for residential building plots rose from 60 to 543 euros per square meter-an increase of 805 percent. Darmstadt followed in second place with a 167 percent increase, while Hamm saw a rise of 159 percent over the same period. According to the Federal Ministry of Construction, other cities with substantial price increases for multi-family housing plots include Brandenburg an der Havel, Freiburg, Frankfurt am Main, Berlin, Erlangen, Rosenheim, Emden, and Kaufbeuren.
For the trend in building land prices for single-family homes, Darmstadt again leads with a 167 percent increase. Similar growth was observed in Fürth (160 percent) and Chemnitz (155 percent). Seven other cities showing high increases include Berlin, Jena, Freiburg, Braunschweig, Mainz, Rosenheim, and Kaufbeuren.
The Left Party politician, Lay, is calling for measures to curb speculation. Speaking to the RND, the housing policy spokesperson for the Left parliamentary group stated, “A halt must be put to land speculation because we need more affordable housing”. She described the explosion of land prices as both “unsocial and dangerous” arguing that “those who own a lot of land get richer just by waiting”.
Among her proposals, she suggested modeling policy after Vienna: “Municipalities must be granted the authority to cap the price of land designated for social housing”.