Why aren't plots of land developed more quickly?
Vacant, developable plots of land certainly exist. Given the scarcity of housing, especially in cities like Munich, the obvious question is why they are not being developed quickly. There is often a suspicion that the land is being speculated on. However, there are various reasons why landowners let their building land lie fallow.
The property will be needed later for personal use.
Some family-owned plots of land are being held for later development. In terms of layout and size, these are plots that are primarily suitable only for single-family homes. New development with apartment buildings is not feasible at all.
Securing building rights and inheritance disputes are standing in the way of development.
Time and again, inheritance disputes delay the sale and thus the development of a property. In most cases, however, the heirs agree fairly quickly on what should happen to the property. Especially because of the impending inheritance tax, many communities of heirs have no choice but to sell the inherited property. Obtaining building rights can certainly be associated with hurdles and problems. Checking whether and how a property can be built on and to what extent the desired ideas can be realized involves a very intensive expenditure of time and work.
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Low capitalization prevents the desired development
Sometimes the construction project fails due to a lack of financial resources. Not every property owner is in a position to raise the necessary money to build on the property appropriately. Building regulations are becoming increasingly strict and quickly drive up construction costs. If the financing for the construction project cannot be secured, the property initially remains undeveloped.
Contaminated sites, plot layouts, and ownership structures are hindering construction
Contaminated sites, the layout of the property, problematic ownership structures, or neighborhood conflicts can prevent plots of land from being built on. Properties with unresolved or problematic conditions are difficult, if not impossible, to sell on the market. As a result, owners have no choice but to leave the land fallow until the situation is resolved.
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