Authored by the expert who managed and guided the team behind the Germany Property Pack
Yes, the analysis of Düsseldorf's property market is included in our pack
What is happening in Düsseldorf’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are local government policies shaping real estate taxes and regulations in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Düsseldorf and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Düsseldorf real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Outer districts will see slower price growth as buyers focus on central locations
In Düsseldorf, central areas are seeing faster price growth compared to the outer districts.
Why? Well, it's all about the money. In the heart of the city, rental yields are higher. For instance, a 1-bedroom apartment in the city center can give you a gross rental yield of about 3.51%. That's a better return than what you'd get in the outskirts, making central properties a hot pick for investors.
Düsseldorf is evolving into a service-based hub, which means more people want to live centrally. The city's booming economy and vibrant culture are pulling in both local and international buyers. Media buzz about the city's appeal only adds fuel to the fire, making central Düsseldorf even more desirable.
Getting around is easier too. With improved public transportation, central areas are more accessible and convenient. This naturally draws more buyers who want the ease of city living without the hassle of long commutes.
The government is also in on the action, focusing on urban development in these central spots. Their plans aim for balanced growth, ensuring that these areas remain attractive and sustainable for the long haul.
Sources: JLL Germany, Global Property Guide, Urbact
2) Rising student numbers will increase demand for rentals near universities
Düsseldorf's student population is booming, and it's shaking up the rental market near universities.
In recent years, especially during the 2023 and 2024 academic periods, international student enrollments have surged. This trend is set to continue with a projected 7% increase for 2024-25, meaning more students are on the hunt for housing.
Neighborhoods like Wersten and Friedrichstadt are hot spots because of their close proximity to universities. The city's housing market is tight, with some areas showing a vacancy rate as low as 0.2%, making rental properties highly sought after.
Students love living near campus for the convenience and easy access to university facilities. Düsseldorf University of Applied Sciences offers smart, high-quality furnished apartments right on campus, which are a big draw.
Local universities are expanding and actively working to attract more international students, which is only going to increase the demand for student accommodation even further.
Sources: ICEF Monitor, Erasmus Play, DZ HYP Residential Market Report, Campus Living Düsseldorf
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) Tax incentives for green buildings will shape property development choices
Tax incentives for green buildings can significantly influence property development choices by making sustainable construction more financially attractive. In 2023, Germany allocated a substantial EUR 57 billion for green infrastructure, which supports green building projects in cities like Düsseldorf. This funding helps developers offset the costs associated with sustainable construction, making it a more viable option.
Moreover, the investment volume in certified green buildings in Germany remained high at approximately €11.2 billion in 2022, indicating that tax incentives are already encouraging substantial investments in this area. Developers are increasingly interested in sustainable construction, with over 72% of insurance companies investing in green buildings in 2022. This trend suggests that tax incentives are a key factor in driving developer interest.
Additionally, successful projects like the "Kö-Bogen 2" in Düsseldorf demonstrate the benefits of green buildings, such as reduced carbon emissions and enhanced urban sustainability. These projects not only contribute to environmental goals but also enhance the city's appeal, further motivating developers to choose green building options. The growing consumer demand for eco-friendly living spaces also plays a role, as people are more aware of climate change and prefer sustainable living environments.
Sources: UBM Development, BNP Paribas Real Estate, Building Innovation Hub, Mordor Intelligence
4) New environmental rules will promote energy-efficient building practices
In recent years, new environmental regulations have played a significant role in encouraging energy-efficient building practices. In Düsseldorf, for example, energy performance certificates have become a legal requirement for selling, renting, or leasing properties. This has led to an increase in the number of buildings receiving these certifications, which assess energy efficiency and CO₂ emissions on a scale from A (very efficient) to G (less efficient).
The "Climate-friendly living and working in Düsseldorf" funding program has been another driving force. It aims to modernize around 55,000 residential buildings, focusing on energy-efficient refurbishments. This initiative has significantly increased the number of energy-efficient buildings constructed in recent years. Additionally, the program provides subsidies for using sustainable materials, such as domestic wood or PVC-U profiles with a high recycled content, further encouraging energy-efficient practices.
Moreover, the Building Energy Act (GEG) in Germany sets mandatory efficiency standards, ensuring that new constructions meet stringent energy efficiency requirements. For instance, from 1 January 2030, new buildings must be heated entirely by renewable energies to qualify as zero-emission buildings. This legislation ensures that energy efficiency remains a priority in new building projects.
Sources: Wüest Partner, Kömmerling, Gleiss Lutz
5) Central Düsseldorf will see higher rental yields as demand for city living rises
Rental yields in central Düsseldorf are on the rise as more people flock to city life.
In recent years, property prices in Düsseldorf have surged, especially in the prime areas. Back in the first half of 2022, the median asking price jumped by 13.1%, which is quite a leap compared to the usual 4.6% increase over the past five years. This makes buying property a bit more challenging, nudging people towards renting instead.
With more folks moving to the city, Düsseldorf's population has swelled to over 980,300 by 2021, growing by more than 5,000 people each year. This influx is putting a squeeze on housing and public transport, making rental properties even more attractive.
Many are finding that renting is the way to go, especially with the rising costs of housing and commuting. In 2023, rental prices in Germany have climbed by 5.1% to 5.8%, and for those moving into new buildings for the first time, it's even higher at 6.5%. This trend is likely to stick around as city living becomes more appealing.
For those considering a move, the convenience of city life in Düsseldorf is a big draw. With everything from work to entertainment within easy reach, it's no wonder people are choosing to rent here.
As demand continues to grow, rental yields are expected to keep climbing, making it a potentially lucrative market for property investors.
Sources: JLL Germany, City Population, Deutsche Wealth
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6) Rental yields for older properties in less connected areas will decline
In recent years, we've seen a noticeable shift in tenant preferences towards newer properties that offer modern amenities. These amenities, such as high-speed internet and energy-efficient systems, are often lacking in older properties, making them less attractive to potential renters.
Additionally, significant investments in transportation infrastructure have been concentrated in more connected areas. This has improved the livability and accessibility of these regions, drawing tenants away from less connected areas where older properties are typically located.
Demographic changes also play a role, as younger populations increasingly prefer urban living with its convenience and cultural offerings. This trend further diminishes the demand for older properties in less connected areas, as these locations do not meet the lifestyle preferences of this demographic.
Moreover, older properties come with higher maintenance costs, which can impact their profitability. This makes them less competitive compared to newer developments that require less upkeep. Consumer surveys and real estate market analyses consistently show a preference for properties with better connectivity, which drives demand towards more connected areas.
Data from past years indicates that rental prices in less connected areas are either stagnating or declining. For example, while the median rent in Düsseldorf has risen, this increase is primarily due to demand in more connected areas, leaving older properties in less connected areas behind.
Reports on urban sprawl and government policies promoting development in well-connected areas further highlight the challenges faced by older properties in less connected regions. These factors collectively contribute to a decrease in rental yields for such properties.
Sources: DZHYP Residential Market Report, Urbact Düsseldorf Report, Avison Young Real Estate Market Report, JLL Residential City Profile
7) Central Düsseldorf rents will increase as urban living becomes more popular
In recent years, Düsseldorf has seen a rapid increase in its population, with the city growing to a bustling metropolis of a million people on working days. This surge in population highlights a strong demand for urban living spaces, as more people are drawn to the city for its economic opportunities and vibrant lifestyle.
New developments like the Grand Central, Duessel-Terrassen, and Seestadt projects are adding thousands of new apartments to the city. These projects, along with the KöTower, which offers modern office spaces and amenities, make central Düsseldorf even more appealing to potential residents. This influx of new housing and amenities indicates a growing preference for urban lifestyles.
Moreover, the average price of apartments in Düsseldorf has risen significantly over the past three decades, with a 175.4% increase. This trend suggests that central Düsseldorf is becoming increasingly desirable, which can lead to higher rents as more people seek to live in these attractive urban areas.
Sources: Global Property Guide, Urbact, Catella
8) Rental prices will spike in newly developed areas due to modern facilities
In recent years, particularly in 2023 and 2024, Düsseldorf has seen a noticeable increase in rental prices in newly developed areas. This trend is largely due to the modern facilities and amenities that these areas offer.
The city has experienced a surge in population, driven by its strong job market and cultural appeal. This influx of people, especially young professionals and expatriates, has fueled demand for housing with modern amenities. As a result, newly developed areas with contemporary living spaces are becoming more desirable.
Moreover, the German residential real estate market report for 2024 highlighted that rents are expected to rise due to low volumes of new construction, particularly in city centers where demand is growing. This indicates a comparative increase in rental prices between older and newly developed areas, where modern facilities are more prevalent.
Additionally, media reports have often highlighted the appeal of modern infrastructure in new developments, contributing to higher rental prices. The city's ongoing urban development projects aim to strengthen city districts by providing modern amenities and housing options, further driving up demand.
Sources: DZ HYP Report, Urbact, OECD Cogito
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) Virtual reality tours will become a standard tool in property marketing
Virtual reality tours are now a staple in property marketing.
Imagine the convenience of exploring a potential new home without leaving your couch. This is becoming the norm as the global virtual tours market is booming, with projections showing it could grow from $1 billion in 2023 to a whopping $18 billion by 2035. This surge is a clear sign that more people are embracing VR technology in real estate.
Buyers' habits are changing fast. By 2024, a significant 77% of potential buyers prefer using virtual reality to check out properties from afar. It's not just a trend; it's a shift in how people want to experience home shopping. Homeowners are on board too, with 65% saying VR tours give a better feel for a property's layout, making it a win-win for everyone involved.
Properties with virtual tours are getting a lot more attention. Listings that include VR tours see 87% more views, and potential buyers linger longer on these listings. This isn't just about more clicks; it's about making sales happen faster. Homes with virtual tours are selling for an average of 9% more and closing 31% quicker than those using old-school methods.
In the competitive world of real estate, standing out is crucial. Virtual reality tours are not just a fancy add-on; they're becoming essential. They offer a way to engage buyers more deeply and speed up the sales process, which is a game-changer for sellers looking to make a quick and profitable sale.
As technology continues to evolve, the real estate market is adapting. Virtual reality tours are at the forefront of this change, offering a new way to experience properties that is both innovative and effective. It's clear that this technology is here to stay, reshaping how we buy and sell homes.
Sources: PhotoUp, The Luxury Playbook, Numalis
10) Smart home technology will be a major selling point in new developments
Smart home technology is becoming a key selling point for new developments, especially in places like Düsseldorf, due to several compelling reasons.
First, the increasing adoption rates of smart home devices in Germany highlight a growing market. The German smart home market was valued at USD 3.42 billion in 2023 and is projected to reach USD 11.75 billion by 2030, with a significant growth rate. This indicates a strong consumer interest and a promising future for smart home technology.
Additionally, there is a rising consumer demand for energy-efficient and sustainable living solutions. Germany's ambitious goals to achieve 100% renewable energy by 2035 and carbon neutrality by 2050 align with the benefits offered by smart home systems, which enhance energy efficiency and sustainability.
Moreover, surveys show a clear buyer preference for homes with integrated smart technology. A large majority of home buyers in Germany are willing to pay more for smart homes, reflecting a shift in consumer priorities towards convenience, security, and energy efficiency.
Sources: NextMSC, Green City Times, Exploding Topics, ElectroIQ
11) Asian investors will increasingly target Düsseldorf’s residential market
In recent years, we've seen a notable increase in Asian investments in European real estate. Back in 2023, there was a 26% rise in cross-border capital investment from Asia and the Pacific into Europe. This trend suggests a growing interest in European markets, which could naturally extend to cities like Düsseldorf.
Düsseldorf is home to a significant Asian community, including around 6,500 Japanese citizens. The presence of Japanese companies and cultural institutions, such as the EKO-Haus and the Buddhist temple in Niederkassel, highlights strong cultural and economic ties between the city and Asia. This existing connection can make Düsseldorf an attractive destination for Asian investors.
Moreover, media coverage often portrays Düsseldorf as an appealing investment destination. This positive attention can draw more Asian investors who are exploring opportunities in European markets. Additionally, collaborations between Düsseldorf real estate agencies and Asian investors can facilitate investment processes, making it easier for Asian investors to enter the market.
Sources: Statista, Düsseldorf Tourism, Asia Real Estate Summit
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12) Foreign investors will target luxury properties in prime locations
Foreign investors are eyeing Düsseldorf's luxury real estate market, especially in prime locations.
Even though European cross-border investments dipped in 2023, American and Asian investors kept their focus on Europe, particularly in Düsseldorf. They are drawn to the city's prime spots, despite the ups and downs in overall investment volumes.
Luxury properties in Düsseldorf are selling well, with areas like Düsseldorf-Benrath being highly desirable. These homes are not just any properties; they are renovated to perfection with unique interior designs, making them excellent investment opportunities.
Düsseldorf is a top economic hub in Germany, famous for its lifestyle and fashion scene. Prime areas like Oberkassel and Golzheim are in high demand among both local and international buyers. These neighborhoods offer spacious, well-refurbished apartments in charming older buildings.
Investors are particularly interested in these areas because they offer a blend of modern luxury and historical charm. The demand for such properties is strong, and the potential for value growth is significant.
For those looking to invest in Düsseldorf, focusing on these prime locations could be a smart move. The city's reputation and the quality of its luxury properties make it a standout choice for savvy investors.
Sources: BNP Paribas Real Estate, Le Figaro Properties, Engel & Völkers
13) Düsseldorf will attract more foreign buyers due to its stable economy and high quality of life
Foreign buyers are increasingly targeting Düsseldorf due to its stable economy and high quality of life. In recent years, property prices in Düsseldorf have been on the rise, indicating a growing demand for real estate. For example, between 2019 and 2020, the rent for existing properties increased by 3.75%, and over a five-year period, rental prices rose by 14.89%.
This trend suggests that foreign buyers see Düsseldorf as a stable investment opportunity. Additionally, the city is a hub for international companies, which contributes to its stable economy. Düsseldorf's strategic location and business-friendly environment make it an attractive place for foreign investors and companies.
The growing expatriate community in Düsseldorf further highlights its appeal. As of 2019, 23.6% of the population were foreigners, indicating a significant expatriate presence. This community often drives demand for real estate and other services, making the city even more attractive to foreign buyers.
Sources: Ilkay Koenec, Wikipedia
14) Updated property tax laws will impact investment strategies
Changes in property tax laws can significantly influence investment strategies, especially in real estate. When property tax rates increase, as anticipated in Germany starting January 2025, it directly impacts the cost of owning property. For example, a resident in Berlin's Mahlsdorf district is expected to see their annual tax jump from EUR273 to EUR913. This kind of increase can make owning property more expensive, which might deter some investors from purchasing properties in certain areas.
Moreover, the recalculation of property tax in Germany, set to affect almost 36 million properties, aims to make the tax more location-based. This means that properties in booming communities and cities like Hamburg could face higher costs. Investors might need to reconsider their strategies, possibly shifting focus to areas where the tax burden is lower. This shift towards a value-based calculation model suggests that properties in structurally weak areas might become more attractive under the new system.
Economists generally agree that changes in tax laws can significantly impact real estate investment. The upcoming changes in Germany’s property tax system are expected to affect millions of property owners, potentially altering investment strategies as investors weigh the costs and benefits of different locations. Comparative studies between cities with different tax regimes can provide valuable insights into how these changes influence investment strategies.
Sources: The Munich Eye, Weiss Immobilien
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) Unterbilk will become more popular for its mix of historic charm and modern amenities
Unterbilk is becoming a popular district because it beautifully combines historic charm with modern conveniences. This blend is evident in the ongoing construction projects, such as the development of 150 apartments and a daycare center next to a new office tower. These projects show significant investment in both residential and commercial infrastructure, making the area more appealing to potential residents and businesses.
The district is also known for its unique storefronts, cafes, and restaurants, which add to its charm. Places like Nudel Quelle, offering handmade tagliatelle, and MY Gemüse Doner, known for vegan and vegetarian options, highlight the area's culinary diversity. This variety of dining options attracts both locals and visitors, enhancing Unterbilk's reputation as a vibrant and trendy neighborhood.
Improved public transportation links further contribute to Unterbilk's growing popularity. The Düsseldorf tram network, with projects like the Wehrhahn line, makes the area more accessible and convenient. This ease of access is crucial for attracting young professionals and families, who are increasingly moving to the district, as suggested by the presence of amenities like daycare centers.
Local government initiatives also play a role in preserving Unterbilk's historic sites while promoting modern living. The new developments are designed with future needs in mind, offering flexible floor plans and modern amenities. This thoughtful approach ensures that Unterbilk retains its unique character while adapting to contemporary lifestyles.
Sources: Studio Caspar, Life in Düsseldorf, Railway Technology
16) Golzheim will become more desirable for its riverside location and luxury developments
Golzheim is becoming a hot spot for property buyers thanks to its riverside location and luxury developments.
In recent years, property prices in Golzheim have been climbing. For instance, in 2023 and 2024, existing homes were priced at about €8,312 per square meter, while new builds were around €4,100 per square meter. This upward trend shows that more people are eyeing Golzheim compared to other parts of Düsseldorf.
Luxury developments are a big part of Golzheim's charm. Take Kentenich Hof, for example, which was completed in 2017. It features elegant art deco designs and bright living spaces, perfectly blending urban luxury with the natural beauty of the nearby Rheinpark. More luxury projects are on the horizon, which will likely boost Golzheim's appeal even further.
People are particularly drawn to properties with river views. Apartments like the 70 m² Luxury Apartment Near Trade Fair are in high demand. This trend is often highlighted in surveys and media, showing that Golzheim's allure is on the rise.
Golzheim's riverside location is a major selling point. The neighborhood offers a unique blend of urban living and natural beauty, making it a prime choice for those seeking a luxurious lifestyle. The proximity to the Rheinpark adds to its upscale vibe, attracting buyers who value both convenience and aesthetics.
With more luxury projects planned, Golzheim is set to become even more desirable. The combination of strategic location and high-end developments makes it a standout choice for property investors looking for value and prestige.
Sources: Living in Golzheim (Düsseldorf), Luxury Development Kentenich Hof, Düsseldorf Vacation Apartment Rentals
17) Rental yields in suburban areas will drop as more people relocate to city centers
In recent years, we've seen a noticeable shift in where people prefer to live, especially in cities like Düsseldorf. More people are moving towards the city center, and this trend is having a direct impact on rental yields in suburban areas.
One of the main reasons for this shift is the increasing rental prices in the city center. For example, a furnished one-bedroom apartment in Stadtmitte can cost between €950 to €1,380 per month, which is significantly higher than in the suburbs. This indicates a strong demand for city center living, which often leads to higher rental yields in these areas.
Additionally, the population in Düsseldorf has been steadily increasing, with a 0.16% rise from 2023 to 2024. This growth suggests a growing preference for urban living, driven by factors like proximity to work, social activities, and improved amenities. Younger demographics, in particular, are drawn to the vibrant lifestyle that city centers offer.
Infrastructure developments and investments in the city center also play a crucial role. With better public transportation and enhanced services, city living becomes more accessible and attractive, further drawing people away from suburban areas. As a result, the demand for suburban rentals declines, leading to lower rental yields.
Sources: Global Property Guide, Macrotrends, Cushman & Wakefield
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.