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What will happen in Düsseldorf’s real estate market? Will prices rise or fall? Is Düsseldorf still a prime location for international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
We’re frequently asked these questions because we’re deeply engaged in this market. Through our collaborations with real estate agents, property developers, and clients purchasing properties in Düsseldorf, we’ve gathered firsthand insights.
That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.
Our aim is straightforward: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Foreign investment in Düsseldorf's residential properties will grow as the city becomes a more appealing business hub
In recent years, Düsseldorf has become a magnet for foreign investment in residential properties, largely due to its growing reputation as a business hub. In 2024, the German investment market for multifamily properties saw a significant transaction volume of €5.3 billion, marking a 16% increase from the previous year. This surge indicates a rising interest from foreign investors in Düsseldorf's real estate market.
The city's strong economic performance, despite a slight contraction in Germany's overall GDP in 2023, has been a key factor in driving up property values. Düsseldorf's thriving industries and job market continue to attract professionals and families, maintaining a high demand for housing. This demand is further supported by the city's focus on improving infrastructure and transportation links, which enhances accessibility and quality of life.
Moreover, property prices in Düsseldorf are expected to rise by 3% to 6% in 2025, driven by high demand and limited housing supply. The ongoing shortage of housing construction permits, coupled with a surge in infrastructure projects, supports this upward trend. Additionally, the city's appeal as a cultural and lifestyle destination is drawing in international buyers and investors, further boosting demand for properties.
Sources: CEIC Data, CBRE Germany Real Estate Market Outlook 2024, CBRE News
2) Property prices on Düsseldorf's outskirts will rise gradually as people look for larger homes outside the city center
The outskirts of Düsseldorf are seeing a steady rise in property prices as more people look for larger living spaces outside the city center.
With the shift to remote work, there's a growing demand for spacious homes in suburban areas. People working from home often prefer houses with more room, which are more readily available outside the city. This trend has been a key driver of house price growth in recent years.
As property prices in Düsseldorf's city center climb, buyers are increasingly seeking more affordable options on the outskirts. The cost per square meter in the city center is significantly higher, making suburban areas a more attractive choice for those looking for better value.
Urban planning reports highlight a focus on developing suburban areas, enhancing their appeal. Improvements in transportation infrastructure are making commuting from these areas more feasible, further boosting their attractiveness. Families, in particular, are drawn to suburban living for its better quality of life and more green space, driving demand for larger homes.
Suburban areas are becoming more desirable due to these developments, and the trend is expected to continue. The combination of remote work, rising city center prices, and improved infrastructure is creating a perfect storm for increased demand in the outskirts.
As more people seek larger living spaces, the outskirts of Düsseldorf are poised for a gradual price increase, making them a hot spot for potential buyers.
Sources: Johannes Wieland, URBACT, Properstar
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Germany versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Düsseldorf’s home prices will keep rising due to low supply and high demand
In recent years, we've seen a noticeable rise in property prices in Düsseldorf. For instance, the median rent increased to €12.35 per square meter per month, with a significant boost in the prime rental segment. Purchase prices have also climbed, with top prices reaching €8,480 per square meter in 2022, and the lower price segment growing by 14.9%.
One of the main reasons for this price increase is the low vacancy rates in the housing market. There are more buyers than sellers, which means the demand for homes often exceeds the available supply. This imbalance naturally pushes prices up.
Another factor is the growing population and urbanization in Düsseldorf. The city has become a magnet for people due to its strong job market and cultural appeal. Even after a population dip in 2021, net migration has helped the population grow, adding to the demand for housing.
Adding to the supply issue is the limited availability of land for new developments. There simply isn't enough space to build new homes to meet the demand, especially in popular areas. This scarcity of land, combined with regulatory challenges, restricts the supply of new housing.
Sources: JLL Germany, Urbact, Cushman & Wakefield
4) Property prices in Düsseldorf's city center will drop moderately as more people move to the suburbs
In recent years, Düsseldorf's city center has seen a moderate decline in property prices as more people have opted for suburban living. This shift is largely due to the growing preference for larger living spaces, which became more pronounced after the COVID-19 pandemic encouraged remote work. People are now seeking homes that offer more space and a better work-life balance, which are often found in suburban areas.
Additionally, consumer surveys and real estate market analyses have shown a clear preference for the lifestyle benefits of suburban living. These benefits include more space, better schools, and a higher local recreation factor, making suburban areas more attractive to families and professionals. Improved infrastructure and amenities in suburban areas, such as better public transportation and more pedestrian-friendly zones, have further enhanced their appeal.
Moreover, the comparative affordability of suburban properties, combined with government incentives for suburban development, has made these areas even more enticing. As a result, there has been a noticeable trend in new housing developments focusing on suburban areas, reflecting the growing demand for suburban living. This shift in buyer preferences has contributed to the decline in property prices in Düsseldorf's city center.
Sources: JLL Germany, Macrotrends, Objective Earth
5) Demand for senior-friendly housing in Düsseldorf will grow as the population ages
Germany's aging population is on the rise, and it's making waves in cities like Düsseldorf.
As people live longer, there's a growing need for homes that suit seniors. Many older folks want to stay put as they age, a trend known as "aging in place." This is especially true in bustling cities like Düsseldorf, where the desire to remain in familiar surroundings is strong.
By 2035, the number of people aged 67 or over is expected to increase significantly, and this will drive up the demand for senior-friendly housing. However, the supply of such housing is projected to fall short by about two million units. This gap underscores the pressing need for more accessible homes.
The German government is aware of this challenge and has rolled out programs to modernize homes. These initiatives aim to make residences more age-appropriate and barrier-free, ensuring that seniors can live comfortably and safely. Efforts to adapt existing housing stock are crucial to meet the needs of an aging population.
In Düsseldorf, this trend is particularly relevant. The city is already seeing a shift towards more senior-friendly living spaces. Developers and policymakers are working together to create environments that cater to older adults, recognizing that the demand for accessible housing will only grow.
For potential property buyers, this means that investing in senior-friendly housing could be a smart move. As the population ages, the value of accessible homes is likely to increase, making them a wise investment for the future.
Sources: Destatis, Vonovia Report, AARP International
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6) Property prices in some Düsseldorf areas will drop slightly as affordable housing projects boost supply
In 2023 and 2024, Düsseldorf saw a significant push towards affordable housing projects, such as the "Grüne Mitte" development, which introduced 500 new apartments, with half designated as affordable housing. This increase in supply is crucial because it directly impacts the housing market dynamics.
Historically, when more housing becomes available, prices tend to stabilize or even decline slightly. In Düsseldorf, the vacancy rate was only 1.4%, indicating that the existing supply was already meeting demand. By adding more affordable housing, the pressure on prices could be reduced, leading to a slight decline in certain areas.
Real estate agencies have observed that while demand remains high, the shortage of housing construction permits has limited new developments, especially in desirable areas. However, the introduction of affordable housing projects could change this scenario, potentially leading to a more balanced market and slight price declines.
Additionally, demographic studies have shown shifts in population distribution due to new housing availability. With more affordable options, areas that were previously less accessible might see increased interest, further contributing to a balanced market and potential price reductions.
Sources: ArchDaily, JLL, Ilkay Koenec
7) Property prices in Unterbilk will rise significantly as it transforms into a cultural and culinary hotspot
The Unterbilk area in Düsseldorf is poised for a notable increase in property prices as it transforms into a cultural and culinary hub. This trend is part of a broader pattern observed in neighboring areas, such as District 4, where property prices have already reached high levels, indicating strong demand.
Significant investments in local infrastructure, like the extension of tram lines and renovation of historic areas, are enhancing Unterbilk's appeal. These improvements are expected to attract more residents and businesses, further driving up property prices. Additionally, the opening of new cultural venues, including galleries and theaters, is contributing to the area's cultural vibrancy, making it more attractive to potential homebuyers and investors.
The growth of high-end restaurants and cafes in Unterbilk is another key factor. This culinary expansion is drawing increased interest from both residents and investors, as the area becomes known for its trendy dining scene. Media coverage highlighting Unterbilk as an emerging cultural district is also boosting its appeal, potentially attracting more tourists and homebuyers.
Sources: JLL Germany, DZHYP Residential Market Report
8) Rents in Düsseldorf’s city center will rise due to high demand and limited availability from professionals
Rents in Düsseldorf's city center are climbing steadily, and this trend shows no signs of slowing down.
Over the past year, rental prices have jumped by 3.8%, with some prime areas experiencing an even steeper increase of 8.6%. This isn't just a blip; it's a clear sign of rising costs. The city's population is on the upswing, with an estimated 641,451 residents expected in 2024. More people mean more demand for housing, especially in central areas where everything is within reach.
New housing developments are few and far between, adding to the pressure. There's a persistent shortage of new homes, particularly in the most sought-after neighborhoods. This scarcity is a major reason why rental prices keep going up. Professionals are flocking to Düsseldorf, drawn by its strong economy and job market. This influx is keeping the demand for housing high, especially in the city center where being close to work and amenities is a big draw.
With limited new housing and a growing population, the existing properties are in high demand. This is a key factor driving up rental prices. The city's economic growth is attracting more professionals and families, who prioritize living close to work and lifestyle amenities. This trend is particularly notable in the city center, where the demand is highest.
As more people move in, the competition for housing intensifies, pushing rents even higher. The limited availability of new developments means that existing properties are snapped up quickly. This is especially true in central areas, where the lifestyle and job opportunities are most appealing.
Sources: JLL Germany, World Population Review, Urbact
We have made this infographic to give you a quick and clear snapshot of the property market in Germany. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Competition for prime properties in Düsseldorf will rise as foreign buyer demand increases
The demand from foreign buyers in Düsseldorf is leading to increased competition for properties in prime locations due to several key factors. First, international investors are significantly involved in Germany's residential real estate market, with 30% of transactions driven by foreign buyers, particularly in Düsseldorf. This influx of international interest naturally heightens competition for available properties.
Additionally, Düsseldorf's strong economic performance and thriving industries attract professionals and families, sustaining high demand for housing. The city's appeal is further enhanced by its ranking in the Working Abroad Index, where expats express high satisfaction with their careers and job security. This positive perception encourages more expatriates to settle in the city, increasing the demand for residential properties.
Moreover, Düsseldorf is experiencing a surge in infrastructure projects, which are expected to boost property values, especially in areas with improved connectivity and amenities. This makes prime locations even more desirable to foreign buyers looking for long-term investment opportunities. The trend of remote working also plays a role, as more people seek a high quality of life in vibrant urban environments like Düsseldorf, further driving demand.
Sources: Internations, Cushman & Wakefield
10) More Asian investors will diversify Düsseldorf's real estate market
In recent years, Düsseldorf's real estate market has been experiencing a noticeable diversification of foreign buyers, particularly with increased interest from Asian investors. This trend is part of a broader pattern seen across Germany, where about 30% of residential real estate deals involve international buyers. Germany's stable economy and attractive rental yields make it a top choice for global investors, including those from Asia.
Reports from real estate agencies and economic analyses have highlighted a growing interest from Asian investors in European real estate markets. For instance, Savills projected a 7% rise in global real estate investment in 2024, with further growth expected in 2025. This growth is driven by various factors, including demographic trends and technological developments, which are making European markets more appealing to Asian investors.
Additionally, stronger economic ties between Germany and Asian countries have been reported, which include increased trade, investment, and cultural exchange. These ties create a more favorable environment for Asian investors in Düsseldorf. Furthermore, media coverage often emphasizes Düsseldorf's attractiveness as a business hub for Asian companies, highlighting its infrastructure, business climate, and cultural events.
Improved connectivity, such as direct flights between Düsseldorf and major Asian cities, also enhances the city's appeal to Asian investors. This increased accessibility makes it easier for them to visit, invest, and manage their properties in the city. Cultural exchange programs and partnerships between Düsseldorf and Asian regions further foster a welcoming environment for Asian investors, building relationships and trust.
Sources: Global Property Guide, Savills
11) Demand for home office spaces in Düsseldorf will grow as remote work becomes more popular
In 2023, a significant portion of the workforce in Germany, about 23.5%, was already working from home, with many doing so regularly. By 2024, this trend had only grown stronger, with 88% of companies in the information economy offering at least one home office day per week. This shift towards remote work has naturally led to a greater need for home office spaces.
Surveys conducted in 2024 showed that employees in 82% of companies in the information economy worked from home at least once a week. This indicates a strong preference for remote work, which in turn drives the demand for properties that can accommodate such needs. In the manufacturing industry, the number of companies offering home office options has also increased significantly, further supporting this trend.
Real estate listings in Düsseldorf have started to highlight home office features, such as dedicated workspaces and high-speed internet. This change in listings reflects the growing interest from potential buyers who are actively seeking properties that support their remote work needs. Additionally, real estate agents in Düsseldorf have reported a noticeable increase in buyer interest in properties with home office capabilities.
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12) Rental yields in Düsseldorf will dip slightly as new developments increase property availability
In 2023, Düsseldorf saw a slight increase in the number of completed apartments, with 2,361 new units, marking a 2.2% rise from the previous year. This indicates a growing supply of residential properties.
Several large residential projects, such as Quartier Westfalenstraße Nord Rath and Quartier Ulmer Höh Derendorf, are underway, further boosting the housing supply. These developments are expected to add hundreds of new units to the market.
The German residential real estate market report by DZ HYP suggests that the increasing supply of new apartments could lead to a decrease in rental yields. This is because more available properties might mean less competition among renters, potentially stabilizing or lowering rental prices.
While specific data on rental demand isn't provided, the trend of more people preferring to buy rather than rent could also contribute to a decrease in rental demand. This shift in preference, combined with the growing supply, might lead to higher vacancy rates, further impacting rental yields.
Sources: JLL Germany, DZ HYP
13) Rental yields in Düsseldorf's suburbs will increase as families seek more spacious homes
Families are craving more space and are flocking to the suburbs of Düsseldorf.
Since the pandemic, there's been a noticeable shift in how people want to live. Many families now prefer larger homes, and this has boosted the demand for properties in suburban areas around major cities like Düsseldorf. The main reason? People are looking for more room and a better quality of life.
Remote work is another big driver of this trend. With more people working from home, quieter and more spacious environments are in high demand, and these are often found in the suburbs. As remote work continues to be popular, this shift is likely to stick around.
High property prices in central Düsseldorf are also pushing families to explore the suburbs. Suburban areas offer better value for money, making them an attractive option for those seeking larger homes. Plus, ongoing infrastructure developments, like new schools and parks, are making suburban living even more appealing.
Suburban areas of Düsseldorf are set to see a rise in rental yields as families look for more spacious living options. This trend is supported by the fact that suburban living offers a blend of affordability and quality of life that city centers can't match.
Sources: ASEAN UP, URBACT, DZ HYP
14) Rental yields in Düsseldorf will rise as young professionals continue to drive strong demand for rentals
Rental yields in Düsseldorf are climbing, with the average gross rental yield hitting 3.66% in the third quarter of 2024.
Düsseldorf is buzzing with a growing number of young professionals, thanks to both local and international arrivals. This influx is boosting demand for residential properties, especially among young professionals and families.
The city's job market is thriving, with industries like fashion, advertising, finance, and telecommunications drawing in a skilled workforce. This economic diversity is driving up the need for housing, particularly in urban areas where young professionals want to be near their jobs and city life.
New housing developments are scarce, so the demand for rentals is outstripping supply, which is pushing rental prices and yields higher. As property prices rise, buying a home becomes tougher, nudging more people towards renting.
Sources: The Stepstone Group, DWS, Global Property Guide
We made this infographic to show you how property prices in Germany compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Interest in historic properties in Düsseldorf will drop as maintenance and energy efficiency concerns grow
In recent years, the interest in historic properties in Düsseldorf has been facing challenges due to rising maintenance costs and energy efficiency concerns. Property maintenance costs in Germany have been increasing, making it more expensive to maintain historic properties. For example, property tax and insurance for a standard apartment can range significantly, adding to the financial burden on property owners.
Energy prices in Germany have also been on the rise, and this trend is expected to continue as the country transitions to renewable energy sources. This makes it more costly to maintain and renovate historic properties, which often require significant energy to heat and cool. Additionally, Germany has introduced stricter energy efficiency regulations, including a ban on fossil-based heating systems starting from January 2024. Historic properties, which may not be equipped with renewable energy systems, will find it challenging to comply with these new regulations.
Consumer preferences are also shifting towards energy-efficient homes. Surveys indicate that home buyers are increasingly valuing building efficiency, and properties with low energy efficiency could lose a significant portion of their value over time. This shift in buyer preferences is further supported by the growing popularity of modern, energy-efficient housing developments in Düsseldorf, which suggests that sustainability is becoming a priority over historical charm.
Sources: Tranio, AOShearman, Energi Media, Numbeo
16) Yields on high-end rentals in Düsseldorf will rise as expats and business travelers look for premium accommodations
High-end rental properties in Düsseldorf are set to see a boost in yields thanks to a few key factors.
Düsseldorf has become a magnet for international companies, which means there's a growing need for premium housing for their employees. This influx of businesses is a big reason why the demand for high-end housing is on the rise.
The city is seeing more expatriates, with a significant chunk of the population being foreigners. Many of these expatriates are looking for luxury living spaces that offer both comfort and convenience, which directly fuels the need for high-end rental properties.
Düsseldorf's economy is thriving, thanks to its strong industrial and commercial sectors. This economic boom is attracting more business travelers who often look for premium accommodations, further driving up the demand for high-end rentals.
New luxury residential projects are popping up around the city, showing a proactive approach to meeting this demand. This development is likely to lead to higher rental yields as the city caters to this upscale market.
Sources: Global Property Guide, Wikipedia, DZ Hyp Residential Market Report
17) Demand for co-living spaces in Düsseldorf will grow as young professionals look for affordable and flexible housing options
In recent years, rental prices in Düsseldorf have been on the rise, making traditional apartments less affordable for many people. This is largely due to a shortage of housing supply, which has led to higher rents for new contracts and first occupancies. As a result, many young professionals are looking for more affordable living options.
Düsseldorf is a thriving economic hub, attracting young professionals with competitive salaries, especially in sectors like technology and finance. The city's economic vitality makes it an attractive destination for those starting their careers, but the high cost of living can be a challenge.
Millennials and Gen Z, who make up a significant portion of the young professional demographic, often prefer flexible living arrangements. Co-living spaces offer shared amenities and flexible rental terms, which align well with the lifestyle preferences of these groups. This preference for flexibility and community living is driving the demand for co-living spaces.
In Düsseldorf, the co-living market is experiencing significant growth. This is part of a broader trend seen in other major cities, where co-living spaces are becoming popular due to their affordability and flexibility. As urban areas become denser, more people are prioritizing sustainable and community-based living arrangements.
Additionally, there is a noticeable increase in single-person households in Germany, particularly in urban areas. Co-living spaces provide an attractive solution for these individuals, offering both affordability and a sense of community. The social and networking benefits of co-living are also appealing to young professionals who are new to the city and looking to build connections.
Sources: DZHYP Residential Market Report, Kummuni, Green Ocean Property Management, Grand View Research, Kummuni
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.