Standard land values/compensation amounts
Since September 2016, the special urban development law (redevelopment law) has applied to a clearly defined district in Radebeul West with the publication of the redevelopment statutes. The redevelopment law is a special right that is limited in terms of subject matter, time and space and is part of the German Building Code (Sections 136 to 164 BauGB). It enables the use of extensive subsidies within a short implementation period (until the end of 2025). With the help of these subsidies (proportionately from the federal and state governments), measures are carried out in the public and private sectors of the redevelopment area. They will bring about structural changes in the development and utilisation of the properties as well as in the surroundings of the entire redevelopment area. The location is thus becoming more attractive for both commercial and residential use and is leading to rising land values on the property market.
If an increase in land value is actually achieved through the use of public financial assistance, it is a federal law that property owners in the redevelopment area must pay compensation. According to the Building Code (Section 154 (1) BauGB), the owner of a property located in a formally designated redevelopment area must pay a compensation amount in cash to finance the redevelopment, which corresponds to the increase in the land value of their property caused by the redevelopment.
The Building Code generally obliges the municipality to levy the equalisation amount, although the city of Radebeul has no discretionary powers. This amount is only due after completion of the redevelopment, i.e. after the public announcement of the cancellation of the redevelopment statutes. To this end, the city council of the large district town of Radebeul passed a resolution on 18.09.2024 (SR 12/24-24/29), according to which it undertakes not to repeal the statutes on the formal designation of the redevelopment area "Zentrum Radebeul West" before 31.12.2025.
The basis for calculating the equalisation amount is the increase in land value of a property as a result of the redevelopment. It is calculated from the difference between the - generally lower - initial value and the - generally higher - final value of the land.
Redevelopment-related increase in land value = final value - initial value
The values are determined by the expert committee for land values in the district of Meißen using expert reports on the zonal, redevelopment-related land value increases in the redevelopment area "Centre Radebeul-West". This was done for the first time in 2018 on the basis of the redevelopment objectives that the Radebeul city council had adopted for the redevelopment area at that time. Following a new assessment, an updated appraisal dated 6 September 2024 is now available, in which the initial and final values as at the valuation date of 1 January 2024 have been determined. The redevelopment-related increase in land value is considerably lower than in 2018 because a number of the redevelopment targets are not expected to be achieved.
The special standard land values were published in the standard land value map for the district of Meißen (as at 1 January 2024). The redevelopment area is divided into different value zones. Properties with a comparable or similar location, usability and layout are summarised in one zone. This results in the following picture:
|
Zone |
Designation |
Initial value |
Increase in value |
Final value |
| 1 |
Northern Bahnhofstrasse/ Meißner Strasse |
335,57 |
3,48 |
339,05 |
| 2 |
Northern Güterhofstraße |
67,11 |
1,13 |
68,24 |
| 3 |
Central Bahnhofstrasse |
359,63 |
2,68 |
362,31 |
| 4 |
Harmoniestraße 14 |
333,49 |
0 |
333,49 |
| 5 |
School campus |
333,49 |
0,23 |
333,72 |
| 6 |
Harmoniestraße 8 and 9 |
333,49 |
0 |
333,49 |
Process discount for early redemption of the equalisation amount
Property owners have the option of minimising the amount of the equalisation amount by paying it off early. This is because the Building Code gives the municipality the option of allowing the equalisation amount to be redeemed in full up to one year before completion of the redevelopment. For this purpose, a voluntary agreement is concluded between the property owner and the municipality, the so-called redemption agreement. This agreement has a number of advantages:
By concluding a redemption agreement, the owners gain legal certainty regarding the equalisation amount. Subsequent levies are excluded. The purchase price review by the city is not required for the resale of properties. The income generated by the redemption can be used for further measures in the redevelopment area. In contrast, the equalisation amounts that are levied by notice after the cancellation of the redevelopment statutes must be returned to the funding bodies. The redemption agreement is also linked to a financial incentive, as the city council passed a resolution on 18 September 2024 to grant a 5% discount on the compensation amount until 31 December 2024.
The early payment of the equalisation amount cannot achieve the deletion of the registered, informative, redevelopment note in the land register, nor can it achieve the early release of an individual property from the redevelopment area.
If you have any questions about the redevelopment areas in the city, please contact the staff at the Urban Development Office. We will be happy to advise you.
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