Escalating residential property values across various dwellings and homes.
In the bustling heart of Germany, the real estate market in its seven most populous cities saw a shift in Q2 2021, with prices on an upward trajectory. Among these cities, Düsseldorf witnessed the fastest growth, followed by Frankfurt am Main and Stuttgart.
Düsseldorf experienced a 2 percent increase in residential real estate prices, slightly higher than the previous quarter's rise of 1.1 percent. The city's rental market also showed signs of growth, with a 6 percent increase in rental prices over the past year leading to Q2 2025.
Frankfurt am Main, on the other hand, demonstrated strong growth and remained a leading city for real estate investment. Asking rents in the city rose by 7 percent over the past 12 months, reaching approximately €52/m² in Q2 2025. This solid growth suggests that Frankfurt likely exhibited the highest real estate price growth in Q2 2021 among the three cities.
Stuttgart, while still showing growth, had a more moderate increase in take-up and rental prices. The city experienced a 6 percent nominal rental price increase, resulting in a top rent of €37/m² in Q2 2025. This growth was probably the slowest or more stable during that period compared to Frankfurt or Düsseldorf.
The exact comparison of Q2 2021 real estate price increases by city is not directly available from the search results. However, the continuous upward trends in residential real estate prices across Germany and evidence of more pronounced demand and price boosts in Frankfurt compared to Düsseldorf and Stuttgart support this inference.
The real estate market recovery continues, as stated by Jens Tolckmitt, CEO of the VDP. Pfandbrief banks, a special type of bond used in Germany for many centuries, are playing a significant role in financing this growth.
In the first quarter of 2023, residential real estate prices increased by 1.4 percent compared to the previous quarter. The figures from the Federal Statistical Office and VDP were close in their reported residential real estate price increase for the first quarter. The dynamics of residential real estate prices have increased again, due to the extremely tense situation on the housing market.
Unfortunately, the Federal Statistical Office has not yet released second-quarter data for residential real estate prices. However, Pfandbrief banks, which collect money from investors to finance a loan and provide additional security to protect investors in case of bank insolvency, suggest that prices continue to rise.
In summary, Frankfurt am Main is the leading city in terms of real estate price growth, followed by Düsseldorf and Stuttgart. These trends are expected to continue, making these cities attractive for real estate investment.
Finance is playing a crucial role in fueling the real estate market recovery, with Pfandbrief banks investing significantly to finance growth. The upward trends in residential real estate prices across Germany, particularly in cities like Frankfurt am Main, have been inferred from the continuous growth observed, despite the lack of Q2 2021 specific data. This evidence of more pronounced demand and price increases in Frankfurt compared to Düsseldorf and Stuttgart indicates a stronger investment potential in the former for real estate.
