Residential City Profile

Housing MarketStuttgart

Housing Market Stuttgart

Stuttgart remains a very attractive location, especially for younger households. In addition to its role as a growing business location with supra-regional significance, the number of study and training places on offer has been growing for years. This is also reflected in the population growth. In the past ten years, Stuttgart’s population has grown by around 9% and is expected to rise to around 614,000 in 2018 due to a high birth rate and net migration of around 2,700.

Find the best Mortgage in Stuttgart now

We have developed a mortgage calculator, that shows you the best terms and conditions to suit both, your financing requirements and personal situation in just a few minutes. Unlike most other mortgage providers for the German market, we request no personal data, enabling you to remain private and with anonymity. Please go ahead start the process of your property financing.

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 Wiesloch (near Stuttgart)

Your German Mortgage Team in Stuttgart

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.

Christian Fey
Senior Financial Consultant

Christian is an expert in real estate and its financing. He knows the Stuttgart real estate market like no other and puts his experience at your disposal. Due to his excellent English language skills you have a contact person who understands you and can answer all your questions.

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.

In which way can this data influence your investment decision?

1. Ensure you have a total overview of the real estate market in your city

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.

2. Check how long properties have been on the market

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!

3. Macroeconomic data are also important

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.

4. The average age of the inhabitants

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.

5. The unemployment rate

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.

6. The average net income

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.

7. The number of people per household

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 Stuttgart

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.

Stuttgart records the lowest number of completions per inhabitant among the Big 8 cities

Despite significant rises in the volume of completions in previous years, 13% fewer new apartments (approx. 1,850) were built between 2017 and 2018, and although there was a slight increase in the number of building permits issued to around 2,100, initial indicators would suggest that this number has fallen again. However, the City of Stuttgart still expects their annual target of 1,800 new homes to be reached over the next ten years, but given the current con- struction deficit and the fact that Stuttgart has the lowest number of housing completions per inhabitant among the Big 8 cities, it is questionable whether the City Council’s tar- get figure is actually sufficient to meet existing and future housing needs. After all, Stuttgart will remain an important business location with supra-regional appeal, despite the comparatively low population growth of just 2,700 in 2018. Criticism of the municipal housing policy has therefore become louder. Nevertheless, the capacity bottlenecks in building land, for geographical reasons amongst others, limit new large-scale residential development. Larger, con- tiguous development sites are a rarity in Stuttgart. However, given the current excess demand, only such large-scale new residential development projects could bring significant relief to the market. This could be achieved, for example, through the targeted development of potential land in the peripheral districts which would require collaboration with the respective municipalities and a successive expansion of the infrastructure, and the further intensification of conver- sions of commercial sites to residential use. Current conver- sion projects include the Quartier am Wiener Platz and vari- ous projects at the former Cannstatt freight station. Further potential land can also be found in the north of the city.

Highest average rental price growth among the Big 8 cities

Stuttgart observed a rise in asking rents of 6.8% between the second halves of 2018 and 2019, to reach €15.25/sqm/ month. As a result of this significant increase, Stuttgart re- corded the highest annual rental growth among the Big 8 cities. While the rise in rental prices in the top (€23.75/sqm/ month) and lowest price segments of around +5% and +0.7% compared to the corresponding period of the previ- ous year fell below the respective 5-year average growth rates (+7.4% and +4.8% respectively), rents in the micro liv- ing segment (living space < 45 sqm) increased significantly to an average of €21.80/sqm/month in the second half of 2019, around 13.7% higher than the previous year. In an analysis of submarkets, there is a mixed picture in terms of rental price growth across the city. While stagnating rents can be observed in Feuerbach, rents have risen particularly sharply in Stuttgart-East.

High consistency in the development of purchase prices

In the market for condominium apartments too, the growth in purchase prices remains high with an increase of 9.3% on the previous year’s figure, although the figure is slightly below the 5-year average growth rate of +9.6%. The average asking price for a condominium apartment in Stuttgart is currently €4,770 per sqm. Both the top and lowest price segments have recorded strong growth: while prices in the lowest price segment rose by around 11.1% compared to the same period of the previous year, the top purchase prices grew by just under 9.4% (compared with 5-year aver- age growth rates of +12.3% and +6.8% respectively). There- fore, the average prime purchase price in the second half of 2019 was around €7,300 per sqm. With a price increase of 3.6%, purchase price growth for new-build apartments has once again slowed down (previous year’s growth +8.2% and 5-year average growth rate +10.7%) and prices currently average €6,670 per sqm. The strongest price rises were achieved in the northern peripheral locations including Mühlhausen and Bad Cannstatt.

Residential City Profile

Housing MarketStuttgart