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Yes, the analysis of Düsseldorf's property market is included in our pack
Interested in investing in real estate in Düsseldorf? You're not alone!
Many people are charmed by Düsseldorf's artistic scene and dream of owning a modern apartment or a stylish townhouse in this city.
Would it be a smart investment, though? Are property prices increasing in Düsseldorf? What is the price per sqm? Should you consider buying in the city center or Oberkassel? What about the taxes? Where can you get a yield above 7%?
We've figured it out for you.
The Investropa team knows this market inside and out. As a matter of fact, we have condensed all our findings in a pack. Get it now.
In the lines below, we will share some of this knowledge.
How is the property market in Düsseldorf?
Is the property market getting better or worse? People have different views. We like to be unique and analyze the latest data and stats to make accurate conclusions.
Property types
In Düsseldorf, there are various types of properties available for sale to meet different needs and preferences.
These include apartments suited for singles or families, charming townhouses with a cozy atmosphere, modern condominiums with amenities, spacious detached houses for larger families, and commercial properties for investment opportunities or business ventures.
Whether you're looking for a comfortable home or a potential investment, Düsseldorf offers a diverse range of properties to choose from.
Buying or renting?
(If you plan to use it yourself and not as a rental)
Whether you're considering settling in Düsseldorf or already living there, you might be pondering the buy vs. rent decision in this vibrant German city.
Usually, buying is better than renting in Düsseldorf due to its strong real estate market and potential for capital appreciation.
On the other hand, if you value flexibility, renting might be the better choice.
Property prices in Düsseldorf
On average, according to the last data from Europace AG, Germany, purchasing a property in Düsseldorf would cost you around $6,800 per square meter.
Naturally, prices are quite spread out. The value of a square meter for an apartment in Düsseldorf city center might differ from a suburban house in Kaiserswerth. We actually offer a more in-depth analysis in our pack for buying property in Düsseldorf and in Germany.
To give you some context, it is 2.8 times less than the property prices in the center of New York.
Also, housing prices in Düsseldorf are 26% cheaper than in Munich.
The most expensive neighbourhoods in Düsseldorf are probably Oberkassel, Niederkassel, Pempelfort and Derendorf, while the cheapest are likely Hamm, Flingern and Holthausen.
Trends
First and foremost, we have to acknowledge that Germany is, today, an incredibly stable country. The last Fragile State Index that has been reported for this place is 23.6.
This is important to remember when wondering if it's a good investment to buy a property in Düsseldorf.
Also, according to the IMF’s forecasts, Germany's economy is expected to soar by 6% in the coming 5 years, resulting in an average GDP growth rate of 1.2%.
If you want to invest in real estate in Düsseldorf it's a good thing because, usually, when the economy grows, people make more money, and this encourages them to invest in real estate, which drives up the demand and prices for properties.
Also, in Germany, the average GDP per capita has changed by 0.2% over the last 5 years. It's not much, but the growth is here.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Germany right now.
Buying property in Düsseldorf
Buying real estate in Düsseldorf can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Düsseldorf and in Germany.
Buying process
In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.
Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.
This is the step-by-step process to purchase a property in Düsseldorf:
- Check residency requirements and obtain a German tax number.
- Engage a local real estate agent familiar with Düsseldorf's property market.
- Research specific neighborhoods and housing regulations in Düsseldorf.
- Request the Grundbuchauszug (land registry extract) for the property from the seller.
- Sign a Kaufvertrag (purchase contract) drafted by a notary and pay a deposit (usually 10% of the property price).
- Conduct a Finanzierungsbestätigung (financing confirmation) if applying for a mortgage.
- Arrange for a property survey (Gutachten) and property appraisal (Wertgutachten).
- Obtain a Wohnberechtigungsschein (residence permit) if purchasing a restricted property type.
- Fulfill the conditions outlined in the purchase contract before the closing date.
- Finalize the purchase at the notary's office, pay the remaining balance, and sign the property transfer documents.
- Submit the necessary documents to the Finanzamt (tax office) for property tax assessment.
- Register the property at the local Einwohnermeldeamt (registration office) to complete the ownership transfer in Düsseldorf.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Germany.
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Where to find a property
Here is a list of websites where you can find properties in Düsseldorf:
- Engel & Völkers - A real estate agency in Munich, providing personalized advice for buying and selling exclusive properties.
- Rightmove - A property portal offering houses and apartments for sale and rent in Germany.
- Buy Berlin - A real estate company specializing in property sales and furnished rentals in Berlin, offering a range of apartments in various neighborhoods.
- Rentola - A rental home search engine, offering over 13,000 available rental homes with price comparison and customer support.
- Deutsche Wohnen - A rental property platform by Deutsche Wohnen, offering apartments and commercial rental offers with customer service for tenants.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Germany.
What you can get
As mentioned before, the average price per sqm in Düsseldorf is $6,800. A 1-bedroom property with an area of 60 square meters would cost approximately $408,000, and a 2-bedroom property with an area of 85 square meters would cost approximately $578,000.
However, property prices can vary because of their qualities and where they're located.
Property prices in the top areas of Düsseldorf are commonly at a premium. An apartment in Oberkassel might cost you around $780,000, while a house in Carlstadt could be priced at $1,190,000.
Still, some spots are easier on your budget. You may find an apartment in Flingern for $220,000, or an apartment in Oberbilk priced only at $180,000.
We give more details about property types and areas in our full pack for buying property in Germany.
Common mistakes
Here are the main pitfalls when buying property in Düsseldorf, Germany:
- Historic building regulations: Preserving heritage may limit renovation options and increase costs.
- Emission zone rules: Ensure your vehicle complies with environmental standards to avoid fines.
- "Makler" fees: Factor in real estate agent commissions (usually 3-6% of the property price).
- Ground rent ("Erbpacht"): Verify if the property is subject to long-term land lease payments.
- Energy efficiency standards: Older properties may need upgrades to meet stringent energy requirements.
- Noise restrictions: Check local noise regulations, as certain areas may have specific limitations.
- Currency exchange risks: Fluctuations in exchange rates can affect the overall property cost (if buying from abroad).
- Grunderwerbsteuer (property transfer tax): Be aware of additional taxes that vary among German states.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Germany Property Pack
Living in Düsseldorf
Living in Düsseldorf is a great experience, offering a vibrant city life, with plenty of cultural attractions and a high quality of life.
Cost of living
The cost of living in Düsseldorf is relatively high compared to other cities in Germany, but it is still affordable for those on a moderate budget. Prices for living essentials such as food and housing are generally higher than in other cities, but the city also offers a wide range of leisure activities and entertainment that can be enjoyed at relatively low cost.
Here are some examples to better understand the cost of living in Düsseldorf:
- Monthly rent for a modern apartment in the hip Medienhafen district: €1,200-€2,000.
- A glass of local Düsseldorf Altbier at a traditional brewery (e.g., Uerige or Füchschen): €2-€4.
- Monthly transportation pass covering zones A and B: €80-€100.
- A bottle of local Düsseldorf mustard (e.g., Löwensenf) from a supermarket: €2-€4.
- Admission to the Kunstsammlung Nordrhein-Westfalen art museum: €10-€15.
- Monthly membership at a Düsseldorf-based gym or yoga studio: €50-€100.
- Fresh produce from the Carlsplatz farmers' market for a week: €30-€50.
- A bottle of local Düsseldorf Killepitsch liqueur from a liquor store: €10-€20.
Neighbourhoods
We like to show information in an easy-to-understand way. So, we made a table that lists the different areas in Düsseldorf. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Pempelfort | Pempelfort is a vibrant neighborhood known for its trendy cafes, boutique shops, and cultural events. | Great cultural scene, lively atmosphere, and excellent public transportation connections. | Parking can be challenging, and some areas might be noisy due to its popularity. |
Flingern | Flingern is an up-and-coming neighborhood with a mix of art galleries, vintage stores, and diverse dining options. | Artistic and creative community, affordable housing options, and good accessibility to the city center. | Not as well-developed infrastructure compared to other areas, and it might lack green spaces. |
Bilk | Bilk is a lively district popular among students and young professionals, offering a wide range of bars, restaurants, and entertainment venues. | Close proximity to universities, affordable housing, and a vibrant nightlife scene. | Noisy at times due to its nightlife, and traffic congestion can be an issue. |
Oberkassel | Oberkassel is an upscale residential area known for its elegant architecture, riverside promenade, and high-end shopping. | Beautiful scenery along the Rhine, upscale housing options, and well-maintained parks. | Higher cost of living, limited public transportation options, and potential traffic during rush hours. |
Altstadt (Old Town) | Altstadt is the historical heart of Düsseldorf, featuring charming narrow streets, traditional pubs, and iconic landmarks. | Rich cultural heritage, a wide variety of restaurants and bars, and great opportunities for shopping. | Can get crowded with tourists, limited modern housing, and parking restrictions. |
Derendorf | Derendorf is a residential neighborhood with a mix of modern apartments, green spaces, and local shops. | Quiet and family-friendly environment, good public transport links, and proximity to supermarkets and schools. | Relatively limited nightlife and entertainment options. |
Golzheim | Golzheim is an elegant district with beautiful parks, a marina, and upscale residences. | High-quality living, scenic river views, and close to the city center. | Higher living costs and limited availability of affordable housing. |
Grafenberg | Grafenberg is a peaceful area known for its large park, Grafenberger Wald, and recreational opportunities. | Green and tranquil surroundings, ideal for outdoor activities, and good public transportation connections. | Can be distant from certain amenities and city attractions. |
Stadtmitte | Stadtmitte is the city center of Düsseldorf, offering a mix of shopping streets, cultural venues, and business centers. | Central location, excellent shopping and dining options, and great public transport connections. | Noisy and crowded at times, limited green spaces, and higher rent prices. |
Unterbilk | Unterbilk is a trendy district with a thriving art scene, trendy bars, and modern apartments. | Hip and vibrant atmosphere, diverse dining options, and proximity to the Media Harbor. | Parking can be difficult, and some areas may experience nightlife noise. |
Life in Düsseldorf
Düsseldorf is a major financial and business hub in Germany, with a strong focus on the services industry. It is home to a number of international corporations and is a popular destination for foreign investment.
What expats usually like the most in Düsseldorf is the city's great cultural attractions, from the Kunstsammlung and the K20 to the Old Town and the Rhine promenade. They also appreciate the city's vibrant nightlife, with its many bars and restaurants.
A good point for a property investor - Düsseldorf has an extensive public transport system with U-Bahn (underground), S-Bahn (overground) and tram lines.
Düsseldorf offers excellent access to healthcare, with a wide range of public and private healthcare providers, and a comprehensive health insurance system.
Finally, it is worth noting that the Heinrich Heine University Düsseldorf ranks among the top 300 universities in the world.
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Renting out in Düsseldorf
This section is for you if your goal is to buy a property and rent it out to generate income.
Long-term
Tenant Profiles in Düsseldorf
According to the data reported by Wikipedia, the home ownership rate in Germany is 49%, which is quite low.
It means that, if you decide to buy and rent out in Düsseldorf, there will be a significant tenant pool. It's a good thing.
If you decide to buy and rent out to long-term tenants, you should target young professionals, expats, and families looking for a convenient lifestyle in a vibrant city such as Düsseldorf. Additionally, students looking for a place to stay near universities and other educational institutions are also a potential tenant profile.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Stadtmitte | Professionals, students | Central location, urban lifestyle | $800 - $2,000 |
Studio in Pempelfort | Youth, young professionals | Trendy area, cafes | $700 - $1,500 |
House in Oberkassel | Families, expats | Residential area, schools | $1,000 - $2,500 |
Condo in Bilk | Young professionals, couples | Modern living, parks | $800 - $2,000 |
2-Bedroom Apartment in Derendorf | Families, working professionals | Urban convenience, schools | $900 - $2,200 |
Penthouse in Golzheim | Executives, upscale renters | Luxury living, river views | $1,500 - $3,500 |
1-Bedroom Apartment in Flingern | Singles, young professionals | Artsy area, shops | $700 - $1,500 |
Rental yields
Nowadays, rental yields in Düsseldorf are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.
Properties located in the city centre of Düsseldorf tend to give the best rental yields due to the high demand for rental housing in the area. Additionally, properties located near public transportation and other amenities such as shops and restaurants tend to be more desirable, thus increasing rental yields.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Düsseldorf are taxed at 10%, which is very advantageous.
Short-term
You could also decide to rent short-term to business travelers, tourists, or students visiting Düsseldorf for a short period of time. Additionally, you could rent to those relocating to the city for a few months.
If you decide to go with that option, look for properties in the Old Town (Altstadt), the Media Harbour (Medienhafen), and the Pempelfort district. These areas are known for their lively atmosphere and high demand for short-term rentals.
Currently, there are approximately 1,805 active Airbnb listings in Düsseldorf, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $118.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Düsseldorf can make around $1300 per month. Also, the average occupancy rate is estimated at 58%.
Is it worth buying real estate in Düsseldorf then?
Buying property in Düsseldorf can be a fantastic choice if you're in it for the long haul. The city's stable economy and promising forecasts suggest that property values could continue to rise over time, potentially leading to solid returns on your investment.
Plus, if you're planning to settle down in Düsseldorf, owning a property provides a sense of security and a place you can truly call home. The diversity of property types available, from apartments to houses and commercial properties, means you can find a place that suits your specific needs and preferences.
However, if you're looking for a quick buck or value flexibility above all else, Düsseldorf's property market may not be your best bet. Rental yields are on the lower side, which might not meet your expectations if you're after rapid returns.
Additionally, buying a property ties you down, making it less suitable for those who prefer to keep their options open and have uncertain future plans. Moreover, navigating local regulations and potential currency risks can be challenging, so if you're not prepared for these complexities, you might want to think twice.
In a nutshell, Düsseldorf offers promising investment opportunities for the long term, but if you're seeking quick gains or value flexibility, you might want to explore other options.
Make sure you understand the real estate market in Düsseldorf
Don't rush into buying the wrong property in Germany. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.