Real Estate

How to reduce development costs

When building a house, you don’t just have to pay for land and material. Builders also have to dig into their pockets for access. It’s not just about the cost of a new street on your doorstep.

The costs for the development of land and house differ depending on the region. At the same time, a distinction is made between the external development of the building area and the internal development of the actual property and one’s own house.

What development costs must builders be prepared for?

External access: If the construction area still needs to be developed, the utilities or the municipality can pass some of the associated costs on to the builders. Finished building plots in construction areas, on the other hand, are usually already developed and the costs are included in the land price.

Inner development: The connections from the street to the property or directly into the building are made here. These are usually the connections for electricity, gas, water, electrical, telephone connection and – depending on the region and need – also for drainage.

How can builders save on development?

The amount of the costs depends, among other things, on the providers, the requirements and the effort required for the work. Whether, for example, the asphalt has to be cut in order to lay lines under a street should be clarified with the local managers. This can possibly be scheduled in the construction planning.

Costs can be saved if builders dig the shaft themselves. However, this is only possible on your own property. Usually, the required connection length is calculated for the house connections from the middle of the street, which still has to be excavated up to the house. However, the connection to itself may only be established by certain companies that are approved, for example, for the respective water associations in the specific area.

If a house with two apartments and a common connection room for sub-distribution is built, there are only one connection cost. If, on the other hand, two builders build a semi-detached house, everyone pays for their connection.

Can costs be added afterwards?

In the course of a conversion, a new connection or several new connections may be required. For better planning and costing, property owners should check with local providers and utilities in advance for the scope and cost.

A point of contention is often the expansion of a road that runs along the property. If the city or municipality improves the road, it can levy a road construction contribution in some federal states.

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