1. What is the current situation on the Frankfurt real estate market?

2. How high are the rents in Frankfurt am Main?

3. What are the real estate prices for condominiums in Frankfurt?

4. What are the real estate prices for single-family houses in Frankfurt?

5. How high are the real estate prices in Frankfurt by district?

6. How will property prices develop in Frankfurt am Main?

7. Contact person - this is what your local expert says

Throughout Germany, Frankfurt am Main has been one of the cities with the highest population growth for several years. The number of residents has increased by 7.1 percent since 2014 to almost 760,000. Due to its economic importance, it is unlikely that the massive influx and the associated demand for living space will decrease in the foreseeable future.

The metropolis on the Main has a vacancy rate of just 0.3 percent, which puts it ahead of the already low values of Stuttgart (0.5 percent), Hamburg (0.5 percent) and Berlin (0.8 percent).

The persistent excess demand for living space in Frankfurt am Main has caused the average rent in the Main metropolis to rise continuously for years. Here, however, a distinction must be made between existing and newly created residential properties, because new buildings in particular have recently seen a significant increase in value.

In the second quarter of 2020, tenants of a new building paid an average asking rent of EUR 16.72 per square meter of living space. Calculated over the past five years, the rent for new buildings rose by +12.9 percent.

The development curve for rental prices in Frankfurt is a little flatter for existing properties. In this submarket, the average asking rent increased by +3.03 percent between 2019 and the second quarter of 2020, so that tenants in such property types are currently paying an average of 14.26 euros per square meter. In the past five-year period, the development of rental prices in this segment was +15.75 percent.

In parallel to the rent, the asking prices for condominiums in Frankfurt am Main have been growing steadily for years. This means that the Main metropolis now has the third highest price level in Germany in this submarket.

Last year, buyers paid an average of 7,751 euros per square meter for a new building. Calculated over the past five years, there has been growth of +53.73 percent for newly built condominiums.

The existing condominiums recorded an even greater increase in value in this market segment. Here, investors paid square meter prices averaging 5,982 euros in the second quarter of 2020. In the past five years, the price increase here was +51.16 percent.

Real estate prices in Frankfurt am Main also rose on the market for single and two-family houses. In the second quarter of 2020, the average offer price was 999,008 euros, which corresponds to an increase of +27.5 percent compared to 2015.

In order to better assess the price dynamics of the real estate market in Frankfurt am Main, it is worth taking a look at the different locations of the city. A distinction is made between districts in very good, good, medium and simple locations. Experience has shown that city districts that are particularly close to the center or those in exceptional geographical locations achieve the highest price levels.

This is also the case in Frankfurt am Main: districts in a very good location are the Westend, parts of Dornbusch and Sachsenhausen Nord as well as the diplomatic quarter. One- and two-family houses achieve asking prices between 1.9 million euros and 4.8 million euros. The local condominiums also have the highest level in the Main metropolis, with prices per square meter between 7,000 and 14,000 euros. The prices for residential and commercial buildings are stabilizing at a high level with prices per square meter between 4,100 and 7,200 euros.

The districts of Frankfurt am Main in a good location border directly on the above-mentioned areas. These include Eschersheim, large parts of Sachsenhausen, the Nordend-Ost as well as parts of the Nordend-West and Lerchesberg. The one- and two-family houses in these districts reach a price range of 860,000 euros to 2.5 million euros. The square meter prices for condominiums in these areas vary between 5,200 euros and 7,950 euros. Multi-family houses with or without a commercial component are sold between 3,000 and 4,200 euros per square meter.

The middle locations include the areas Seckbach, Bergen-Enkheim, Bornheim, Ostend, Sachsenhausen Süd, Niederrad Bockenheim and the Europaviertel. For single and two-family houses in these districts of Frankfurt, buyers can expect a price range of 550,000 euros to 1.4 million euros. In the case of condominiums, it is expected that the price range from 3,900 euros to 6,000 euros per square meter will increase further. Increases in the middle locations are also to be expected in the residential and commercial building segment. Here the prices are currently between 2,200 and 3,100 euros.

In particular, the outlying districts such as Harnheim, Frankfurter Berg, Sossenheim, Praunheim, Sindlingen, Nied and Höchst have a simple location. Local one- and two-family houses achieve a price range between 320,000 euros and 650,000 euros. However, a positive price development is also expected here in the future. For condominiums in a simple location, whose square meter prices are currently between 2,400 euros and 4,200 euros, it can be assumed that the price level will remain the same for the time being. In the simple locations on the outskirts, the prices for residential and commercial buildings are rising sharply and are now in the range between 2,000 and 2,250 euros per square meter.

A trend reversal in the continuously rising real estate prices in Frankfurt am Main is currently not in sight. On the contrary, the high demand for living space in the Main metropolis is likely to remain stable in the coming years due to its increasing importance as Germany's digital center. David Schmitt from Ilkay Koenec Frankfurt am Main summarizes the current situation:

“As a stable business location, Frankfurt is in high demand both nationally and internationally. The trend towards living in the city is unbroken, which is shown by the success of the apartments placed on the market in the residential towers that are currently being built. Apart from that, detached single-family houses in premium locations in particular achieve top prices. The demand for large apartments with their own garden is also unbroken. "

You can get even more in-depth insights into the residential property market in the 64 most important cities in Germany in our interactive comparison of all locations or in a personal conversation with Germany's fairest real estate agent. We are looking forward to your contact!

Eike Hugo and Garlef Reche from Ilkay Koenec Commercial Frankfurt am Main categorize current events on the residential and commercial property market in Frankfurt am Main: “Overall, the market for residential and commercial buildings in Frankfurt am Main continues to be very dynamic. Purchase prices, especially in good but also in simple locations, have stabilized further. The demand for residential and commercial buildings remains high. Thus, the financial metropolis in the heart of Europe continues to present itself as a top investment location for private as well as institutional investors. "

Transactions, factors, prices, rents and further information on the market for apartment buildings in 67 cities can be found in our residential and commercial building market report Germany 2020.