1. What are the current developments on the Cologne real estate market?

2. What are the rental prices for condominiums in Cologne?

3. How high are the purchase prices for condominiums in Cologne?

4. Wie hoch sind die Kaufpreise für Ein- und Mehrfamilienhäuser in Köln?

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

6. What is the prognosis for future developments in real estate prices in Cologne?

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

Due to its attractiveness, the city of Cologne has recorded steady population growth for years. Since 2014, the population has increased by +3.9 percent to 1.085 million inhabitants. The steady increase in the number of metropolitan residents is not causing the demand for living space to diminish. It is unlikely that the high demand for real estate will decrease in the future: With a population of 1.2 million projected by 2040, there is currently no end to the population boom in sight. Due to the high demand for living space, the vacancy rate in Cologne, as in many other major German cities, is low. Only 0.9 percent of the available living space is unused in the metropolis on the Rhine. Ilkay Koenec assumes that the currently largest urban development project, Parkstadt Süd in the Bayenthal district, will only be able to alleviate this situation slightly.

If you look at the development of rental prices in Cologne, you have to differentiate between existing properties and new buildings. The asking rents in the new construction sector rose by +3.32 percent in 2020. Thus, tenants in the Rhine metropolis currently pay an average of 13.08 euros per square meter of living space. In contrast, rents rose over a period of five years. Since 2016, the rent for new buildings in Cologne has risen by an average of +7.65 percent. The rental prices for existing properties are developing positively across the board. In 2020, tenants paid an average price per square meter of 11.73 euros. This means that rents in Cologne were on average +1.56 percent above the previous year's level. In the past five years, rents for existing properties rose even more sharply than for new buildings, with a plus of +11.5 percent.

The purchase prices for condominiums are also increasing in the Rhine metropolis - both for existing properties and in the new construction sector. The average asking price for a condominium in Cologne is currently 4,301 euros per square meter. However, this value depends heavily on whether the property is an existing property or a new building. In the case of existing properties, investors paid an average square meter price of 4,181 euros last year. The prices rose again by +7.95 percent compared to 2019. If you look at the development of real estate prices for condominiums over the past five years, the price increase is even +39.69 percent. Naturally, the price level for new buildings is even higher. However, in percentage terms, the prices for condominiums in this sector rose less than that of existing properties. One square meter of living space in a new building in Cologne cost an average of EUR 5,517 in 2020, +4.51 percent more than in the previous year. Over the past five years, prices for condominiums in Cologne have risen by an average of +27.33 percent.

The housing market in Cologne is also characterized by a persistently high price level, although prices here have not risen as strongly as in the case of rents. A single-family house in the Rhine metropolis cost an average of 701,184 euros in the second quarter of 2020. This corresponds to an increase of +1.6 percent compared to the first half of 2019.

Due to high demand, the prices for residential and commercial buildings and apartment buildings in Cologne have been rising for years. The average offer price in the first half of 2019 was 3,253 euros per square meter. Prices and factors are currently increasing in all parts of Cologne. Transaction numbers, rents, prices and factors can be found in detail in our Residential and Commercial Buildings Market Report 2020.

The purchase prices for one- and two-family houses as well as for condominiums in Cologne depend to a large extent on their location. Therefore, a distinction is made between very good, good, medium and simple locations. The classification of a district in a certain location is influenced by various factors such as the existing infrastructure or the leisure facilities. Above all, properties close to the center and in the south of Cologne have a significantly higher price level in some cases than the outer districts. 

Districts in Cologne with a very good location include Lindenthal, Marienburg, Hahnwald, Klettenberg and parts of the new and old town. Local one- and two-family houses have top prices of up to 6.5 million euros. The purchase prices for condominiums are also well above the city-wide average: investors have to pay between 7,000 euros and 18,000 euros per square meter of living space. Square meter prices between 3,200 and 5,000 euros are called for multi-family houses.

Real estate prices in Cologne are also at a high level in good locations. Districts that fall into this category are mainly areas close to the center, such as the old town, Deutz, Neuehrenfeld and the Neustadt. The price range there for single and two-family houses is on average between 1 million euros and 3 million euros. Condominiums achieve prices per square meter between EUR 5,000 and EUR 8,500 on average, while prices per square meter for residential and commercial buildings are between EUR 2,700 and EUR 3,500.

Real estate prices are more moderate in the central locations of Cologne, which mainly include the areas east of the Rhine. The districts of Kalk, Mühlheim, Potz and Ensen, among others, fall into this category. For one- and two-family houses in these parts of the city, the price range is between 650,000 euros and 1.55 million euros. Condominiums in these and other parts of the city in middle locations fetch prices between 4,000 euros and 7,000 euros per square meter of living space. For residential and commercial buildings, square meter prices between 2,000 and 2,700 euros are called here.