Residential City Profile

Housing market Frankfurt

When your Home is also your Investment

Consider the location factors of the property. 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 - housing market Frankfurt

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.
MLP Frankfurt

High level of new-build activity in the upper price segment

As an important European financial metropolis and a powerful business centre, Frankfurt is characterised by dynamic population growth. Between 2014 and 2018, the city’s population grew by 5.6%, or almost 40,000, second only to Leipzig among the Big 8 cities studied by JLL. In addition to a high birth surplus, Frankfurt can attribute most of its population growth to economic immigration. Due to its good accessibility and relatively moderate cost of living compared to other top European locations, Frankfurt is a particularly attractive place to live and work for international employees and companies. In response to the associated rise in demand for housing, construc- tion activity in the urban area has intensified since 2013. 16,645 apartments were built in the period from 2014 to 2018, with 3,519 units built in 2018 alone. This construc- tion boom will continue over the next few years. At 7,326, a record number of building permits were granted in 2018. Most construction activity is concentrated in central city locations and involves the construction of condominium apartments in the prime segment, mainly in the form of residential towers which are becoming the largest price driver in the market. In order to cater not only for the luxury segment, at the end of 2019 the City of Frankfurt approved a building land resolution committing itself to sustainable, socially responsible urban development; this will ensure affordable housing for all sections of the pop- ulation and slow down the rapid rises in land prices by introducing a quota of 30% subsidised residential con- struction for all residential developments.

Highest rental price dynamics in central city locations

In view of the sustained high level of demand, rental price growth continued in the second half of 2019. Compared to the previous year, the average asking rent has risen by 3.2% to reach a new high of €15.35/sqm/month. The big- gest price jumps are to be observed in the micro living and high-priced residential segments. With growth of 7.4% to an average of €20.00/sqm/month, micro apartments with a residential area of < 45 sqm recorded the largest price in- crease, but the top segment also enjoyed above-average growth, rising by 5.8% to €23.70/sqm/month. Comparatively moderate growth rates of 3.3% to €10.85/sqm/month were recorded in the lowest price segment (cheapest 10% of the rental apartments on offer) and asking rents for new-build apartments rose only slightly by 0.9% to €16.15/sqm/month. In an analysis of submarkets, the strongest rental price growth in 2019 took place in central districts, with particu- larly strong rent rises recorded in the Railway Station Dis- trict, the City Centre and around the Old Town.

Greatest dynamism still in the lowest purchase price segment

The market for condominium apartments also continues to develop dynamically, with price increases fluctuating around the level of the 5-year average growth rate. The average purchase price for condominium apartments was €5,860 per sqm and therefore 9.7% higher than in the previ- ous year. Above-average price rises were observed above all in the lowest price segment, which recorded the highest growth rate with an increase of 13.7% to its current level of €3,580 per sqm. In the top segment too, purchase prices once again grew by an average of 11.9% to €9,490 per sqm (5-year average growth rate 8.4%). In general, purchase prices for condominium apartments in Frankfurt’s top seg- ment have risen by 51.4% over the past five years and are therefore only exceeded by Berlin. Similar to the rental market, the slowest growth was recently seen in purchase prices for new-build apartments, which only increased by 8.2% to €6,960 per sqm in 2019. In an analysis of submar- kets, the biggest price increases since 2017 have been ob- served in Frankfurter Berg and around the Mertonviertel, as well as in Niederrad and the Gutleutviertel.

Housing Market Frankfurt

Frankfurt’s population continues to grow strongly. In 2018, the City of Frankfurt recorded an increase of around 6,750 people and therefore the city looks set to break through the 750,000 threshold this year. The main reason for this is that as an important European financial centre and business location, Frankfurt’s labour market is showing extremely positive growth.

Find the best Mortgage in Frankfurt now

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Our service is free of charge for you. As it is common that mortgage brokers in Germany are getting paid by the banks.

Our Premises in Frankfurt

Your German Mortgage Team in Frankfurt

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.
Matthias Heukeshoven

Matthias Heukeshoven

European Finance Planner

Matthias has been advising foreign real estate investors in Frankfurt for many years. His time in the United States has given him excellent English speaking skills. He will implement your project in lightning speed.

Apostolos Simoglu

Apostolos Simoglu

Senior Financial Consultant

Apostolos is an experienced advisor on all aspects of financing your property in Frankfurt. His excellent knowledge of English and his understanding of the real estate market will help you to obtain advantageous financing at the best conditions.

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