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Will real estate prices in Frankfurt go up in 2025?

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Yes, the analysis of Frankfurt's property market is included in our pack

Thinking about buying a 3-bedroom apartment in Sachsenhausen? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?

And what about long-term investment—should you look into other districts like Westend or Nordend where property values might appreciate more over time?

In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Germany Property Pack.

Will property prices increase in Frankfurt in 2025?

Yes, property prices in Frankfurt are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.

Backed by our fresh, in-depth market analysis, we’re confident that Frankfurt remains one of the hottest cities globally for both domestic and international investors.

Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Frankfurt’s price growth aren’t going anywhere.

Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Frankfurt’s status as a financial hub keeps drawing in buyers from around the world.

Signals pointing to a property price increase in Frankfurt

Here are some factors suggesting prices could increase:

The ongoing shortage of housing supply in Frankfurt, particularly in the city center, is expected to persist into 2025. With demand remaining robust, this lack of supply will likely continue to push up property prices.

Frankfurt's role as a major financial center in Europe continues to attract international businesses and expatriates, increasing demand for both residential and commercial properties.

Infrastructure improvements, such as the expansion of public transportation networks, are set to enhance connectivity in and around Frankfurt, making certain areas more attractive and potentially increasing property values.

The city's strong economic performance and low unemployment rates contribute to a stable and growing housing market, encouraging investment in real estate.

Government incentives for sustainable and energy-efficient building practices are expected to increase the value of properties that meet these standards, driving overall market prices higher.

The trend of urbanization and the desire for city living continue to drive demand for properties in Frankfurt, particularly among younger demographics and professionals.

Signals pointing to a property price decrease in Frankfurt

Here are some factors suggesting prices could fall:

Rising interest rates could make mortgages more expensive, potentially reducing the purchasing power of buyers and cooling demand.

Economic uncertainties, such as potential recessions or financial market volatility, could impact buyer confidence and slow down the real estate market.

Increased construction costs and regulatory hurdles could slow down new developments, limiting the supply of new housing and potentially affecting market dynamics.

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If property prices go up in Frankfurt, how much would they increase by?

If real estate prices in Frankfurt were to rise in 2025, the increase would likely be around 3% to 6% of their 2024 values.

Typically, real estate in stable, mature markets like Frankfurt appreciates by approximately 2% to 6% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.

It means that, if you spot a charming 2-bedroom apartment in Sachsenhausen for 500,000 euros today, don't be surprised if it's priced between 515,000 and 530,000 euros this time next year.

To give you a better understanding, here is a table that shows 7 types of Frankfurt real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 4%, and 6%.

Type of Property Average Price in 2024 (€) Price in 2025 (2% increase) Price in 2025 (4% increase) Price in 2025 (6% increase)
Altbau Apartment (60 sqm / 646 sqft) €600,000 €612,000 €624,000 €636,000
Modern Apartment (75 sqm / 807 sqft) €800,000 €816,000 €832,000 €848,000
Luxury Penthouse (100 sqm / 1,076 sqft) €1,500,000 €1,530,000 €1,560,000 €1,590,000
Studio (30 sqm / 323 sqft) €300,000 €306,000 €312,000 €318,000
Loft (80 sqm / 861 sqft) €1,000,000 €1,020,000 €1,040,000 €1,060,000
Townhouse (150 sqm / 1,615 sqft) €2,000,000 €2,040,000 €2,080,000 €2,120,000
Investment Property (50 sqm / 538 sqft) €500,000 €510,000 €520,000 €530,000

Everything you need to know is included in our Property Pack for Frankfurt

If real estate prices go up in Frankfurt, which areas are likely to see the biggest increases?

Today, people who want to move to Frankfurt are looking for a blend of historical charm and modern amenities, which Sachsenhausen offers. Hence, we could see a price increase there in 2025.

Additionally, there's been a trend towards more dynamic and youthful neighborhoods, and Bornheim has really gained popularity.

We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Frankfurt market.

Neighborhood Level of Increase Why
Sachsenhausen High Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand.
Westend High Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Frankfurt.
Nordend Medium-High Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher.
Gallus Medium The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments.
Bockenheim Medium-High Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward.
Bornheim High Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable.
Ostend Medium-High With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors.
Rödelheim Medium Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value.
Höchst Medium-High Its proximity to central Frankfurt, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space.
Niederrad Medium Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable.
Riedberg High As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values.
Innenstadt High Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location.

If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation?

In 2025, Frankfurt real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.

  • Tech-Equipped and Energy-Efficient Apartments:

    Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.

  • Family-Sized Apartments in Suburban Areas:

    With a growing demand for larger living spaces, especially among families, suburban areas near Frankfurt are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.

  • Properties with Outdoor Spaces:

    Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Frankfurt, these features offer a much-needed escape and are likely to drive up property values.

  • Eco-Friendly Buildings with Low Carbon Footprints:

    Frankfurt's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.

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