Germany
Germany's Erbbaurecht lets you keep the land forever and collect an indexed ground rent for 60–99 years while a developer builds — a genuine 'never sell' option that churches and cities use at scale.
GFZ/GRZ from the B-Plan (or §34 envelope) set density. Grunderwerbsteuer 6% in Berlin shapes structure choice; Bau-Turbo §246e accelerates residential deviations through 2030.
- Title system
- Grundbuch (court-kept land register) + mandatory notarial conveyance; near-absolute title.
- Foreign ownership
- No restrictions on foreign buyers/developers; municipal pre-emption rights (Vorkaufsrecht) in protected districts.
- Authorities
- Grundbuchamt + district building authorities / Berlin Senate; federal framework BauGB.
- Zoning metric
- GFZ (FAR) & GRZ (coverage) per B-Plan/BauNVO — residential ~1.2, core districts to 3.0; Berlin infill via §34 'fit-with-surroundings'.
- Height control
- Berlin eaves tradition ~22m; >60m high-rise case-by-case; most schemes 5–8 storeys.
- Building code
- BauGB + BauO Bln; Eurocodes (DIN EN); GEG energy act; 'Bau-Turbo' §246e BauGB (in force Oct 2025) — faster housing deviations to 2030.
- Approvals & timeline
- §34/§246e Baugenehmigung ~6–18 mo; fresh B-Plan 2–5 yrs; Bau-Turbo shortening housing cases. (~6–24 months)
- Transfer taxes & fees
- Grunderwerbsteuer 6% Berlin (3.5–6.5% by Land); notary/registry ~2%; share-deal structures mitigate above thresholds.
- Foreign capital
- Open EU market; distressed pipeline post-2023/24 insolvencies creating entry points; financing-cost-driven cycle.
Common JV structures
Land-as-Equity SPV
20–50%Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).
Erbbaurecht (Heritable Building Right)
1.5–4%German registered, inheritable, mortgageable right to own a building on another's land for 60–99 years. Owner receives indexed ground rent (Erbbauzins, ~1.5–4% of land value p.a.); at expiry the building is compensated (statutory minimum 2/3 of value for housing).
Forward Funding / Forward Sale
5–15%An institution buys the land day one and funds construction in draws (forward funding), or contracts to buy the completed building at a fixed price (forward sale). The developer earns a development margin; the owner usually exits cleanly at the land sale.
Development Management + Profit Share
10–30%Owner keeps ownership and funds the project; the developer acts as development manager for a base fee (2–5% of cost) plus a promote (10–30% of profit above a hurdle). Effectively a JV without a land transfer.
- ⚠ Rent regulation (Mietpreisbremse to 2029; conversion bans)
- ⚠ Energy-standard cost burden (GEG/EH-40)
- ⚠ Slow planning outside Bau-Turbo cases
EU escalation low (~2–3%/yr); energy standards drive spec cost.