Residential City Profile

Housing market Dusseldorf

When your Home is also your Investment

Consider the location factors of the property, like the current housing market. In order to guarantee a long-term value development of a property it is necessary to understand the already known data of the location. We provide you with this important data at the level of each district of the city and update it every month.

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In which way can this data influence your investment decision?

Get a more detailed overview of the city you are interested to invest. Rather than just looking at the city as a whole, go that bit deeper. Look at the different districts, look at the property prices and how they have been impacted by changes i.e gentrification that has taken place in the last years. This could be a good indication of the impact on the prices for the future.

A good indication of how realistic the property prices are, can be gauged on how long properties stay on the market before being sold. When properties are slow to sell , this could indicate room for negotiation! When properties are moving quickly, then you have to move quickly too!

Macroeconomic data can also provide some valuable information, particularly when you are looking at it from a ‘supply /demand’ perspective. Comparing the number of households in the district and the number of housing units available, is a good indicator how the property prices could develop. When the demand is higher than the number of properties available on the market, prices will rise.

The age of the inhabitants in a district will certainly have an effect on the property prices. Districts with a younger age group, those finishing their studies starting new jobs, starting families etc create a demand for cafes , restaurants, entertainment outlets, kindergartens, organic markets etc enabling new businesses for flourish. This in itself creates a further demand as more people want to be part of this and so, is then reflected in the property prices. Back to the supply/demand.

When a district has a healthy employment rate, therefore a stronger purchasing power, this will undoubtable have a more positive effect on the future potential for property.

The average net income in a district to some degree can be related with the employment status, but of course, a lower net income district with a high employment rate with young residents could also become a future area for development. Sometime we also have to take a longer term view.

By considering the number of people per household in a district, this will help determine which district best match with your requirements and investment strategy. Buying a 3 room apartment for a family could also work well for student sharing accommodation, if there is a high student presence in that district and the demand is there.

City Report Dusseldorf

Since 2014, we have had the pleasure of assisting JLL clients and advisors in finding the best possible financing for their investment projects in Germany.
Sunset view on the Medienhafen financial district

Unwavering high demand in the housing market

The strong labour market and high standard of living in the city of Düsseldorf ensure dynamic population growth. Since 2011, the number of inhabitants has grown by 8.7% and, accordingly, the number of households has risen by 3.5%. However, the number of completions and building permits is currently falling. Since 2017, there has been a decline of around 27% in the volume of completions and 33% in the number of permits issued. Despite this, the fig- ures are still above the forecast demand. Moreover, the City of Düsseldorf has set itself the goal of completing an aver- age of 3,000 apartments per annum by 2025 to satisfy the current excess and steadily growing demand. In particular, the persistently low vacancy rate of 1.4% with a continu- ously expanding stock of space confirms the status of a high excess demand. Nonetheless, Düsseldorf’s space po- tential is severely exhausted and although there are still a few smaller areas of undeveloped land in the central dis- tricts, a shift towards the periphery is slowly taking place. Peripheral districts such as the Sixth District in the north- east of the city still offer larger contiguous areas of land for new housing developments. However, in order to increase demand for housing in the periphery and offer affordable accommodation there, measures must be taken to make the surrounding area more attractive. For example, an expansion of the infrastructure would be a major driver, bringing relief to Düsseldorf’s housing market. Overall, however, it remains questionable whether the City Council will be able to intensify its connectivity with the surround- ing area and thus achieve its goal of containing the increas- ing prices through an expansion in supply.

Balanced rental price trends in the Dusseldorf market

Asking rents in Düsseldorf’s rental market rose by 2.7% last year. The average rent in the second half of 2019 was €11.55/sqm/month. This means that Düsseldorf remains relatively cheap compared to most of the Big 8 cities, with only Leipzig currently showing a lower rental price level. However, rents are on a steady upward trajectory, growing by 21% above the 5-year average. In the second half of 2019, the upper price segments in particular recorded sig- nificant price increases. The average asking rent for the most expensive 10% of the apartments on offer grew by 6.8% to €17.20/sqm/month and that of the top 25% by 3% to €13.85/sqm/month. At the local level, the top segment of the central Second District increased by a considerable 13.9%. However, decreases were also observed in other price segments over the same period. Conversely, there is potential for further rental growth in the districts of Lohau- sen, Stockum and Hassels.

Supply shortage affects purchase prices in peripheral locations

The shortage of supply in Düsseldorf’s housing market resulted in a significant increase in the average purchase price, by 13.3% compared to the previous year. With re- latively moderate rental price growth, Düsseldorf has recorded the strongest growth in asking prices of all the Big 8 cities. The average asking price currently stands at €4,270 per sqm. The purchase price level in North Rhein- Westphalia’s state capital continues to lag behind other major German cities but is catching up steadily overall. Significant increases over the previous half-year were ob- served across all purchase price segments. There were significant changes in the east and south of Düsseldorf. For instance, prices in the top segment of the eastern Sev- enth District grew by 19.5% and by an average of 16.3% in the lowest price segment of the southern part of the city (Ninth and Tenth Districts). The situation in the market is clearly also driving up purchase prices in peripheral areas. In addition to these locations, however, the city centre and prime locations in the west also continue to show rising prices.

Find the best Mortgage in Dusseldorf now

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Our Premises in Dusseldorf

Your German Mortgage Team in Dusseldorf

For more than 25 years we have been helping clients from all over the world to implement their real estate financing in Germany. We put our market knowledge at your disposal and guarantee a smooth process of your financing from the first contact to the disbursement of the loan.
Wolfgang Schnickmann

Wolfgang Schnickmann

Senior Financial Consultant

Wolfgang spent three years of his working life as a MLP Consultant in Central London. So you can expect an advisor with excellent English speaking skills und understanding for international clients. Wolfgang ist keen to help you with your mortgage project in Dusseldorf.

Housing market Dusseldorf

In Dusseldorf, the number of completed apartments in 2018 was roughly on a par with the previous year at around 2,050; however, the sustained rise in demand for housing continued in 2018. The strength of demand for housing can be attributed not only to Dusseldorf’s role as the state capital and an important media and business location, but also to the fact that the housing cost burden is still relatively low compared to other locations such as Frankfurt, Stuttgart and Munich. Nonetheless, the number of building permits granted has fallen by almost 20% year-on-year to around 2,500 over the past 12 months, so the completion target of 3,000 new apartments per annum set by the City Council will not be achieved in the future and the deficit in new housing construction will persist.

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