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Buying a property in Frankfurt: a complete guide

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property investment Frankfurt

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

Are you considering investing in real estate in Frankfurt? You're not alone!

Many people find Frankfurt's financial hub appealing and fantasize about owning a stylish apartment or a modern penthouse in this city.

Still, would it be a smart investment? Are property prices increasing in Frankfurt? What is the current trend? Should you consider investing in the Westend or Sachsenhausen? What about the taxes? What rental yields should I expect?

We've figured it out for you.

The Investropa team knows this market inside and out. Actually, we have condensed all our findings in a pack. Get it now.

In this article, we'll provide you with helpful information.

How's the real estate market in Frankfurt?

Are property prices rising or falling? Let's consult the most recent data and stats.

Property types

In Frankfurt, you can find various types of properties for sale, including apartments, houses, condos, and commercial spaces.

Apartments are usually located in multi-story buildings and are great for individuals or small families. Houses offer more space and a yard, suitable for larger families or those who value privacy. Condos provide a mix of apartment convenience and ownership benefits.

Commercial spaces are available for businesses looking to establish a presence in the city.

Whether you're looking for a cozy home or a place to start your business, Frankfurt has a range of property options to explore.

What's better: buy or rent?

(In case you want it for yourself, not for rental purposes)

Whether you're considering settling in Frankfurt or already living there, you might be thinking about the pros and cons of buying versus renting a property in this vibrant German city.

Generally, buying is a better choice than renting in Frankfurt due to the city's strong real estate market and low mortgage rates.

Still, if flexibility is key, consider going for renting.

Property pricing in Frankfurt

On average, according to the last data from Europace AG, Germany, purchasing a property in Frankfurt would cost you around $8,000 per square meter.

Naturally, prices are quite spread out. The value of a square meter for a city-center apartment in Frankfurt might differ from a suburban house in Sachsenhausen. You'll get a more detailed in our pack for buying property in Frankfurt and in Germany.

To give you a sense of scale, it is similar to the prices you can find in a city like Rome.

Also, housing prices in Frankfurt are 13% cheaper than in Munich.

The most expensive neighbourhoods in Frankfurt are probably Westend, Nordend, and Sachsenhausen, while the cheapest are likely Bockenheim, Niederursel, and Bergen-Enkheim.

Frankfurt Property Price per Square Meter


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.

Don't overlook this while weighing the pros and cons of buying a property in Frankfurt.

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 Frankfurt 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.

But, based on the information from the UBS Global Real Estate Bubble Index, the property market in Frankfurt is considered to be too expensive right now and there's a potential risk of a housing bubble. The index is at 2.12, and a score above 1.5 indicates a bubble risk.

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 Frankfurt

It is difficult to buy property in Frankfurt due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Frankfurt and in Germany.

Buying process

In the pack of documents we have built, we've covered everything about buying a property, from the contacts you'll need to the taxes that need to be paid, and even where to look for available properties.

Now, we're presenting a simpler version to make it easier for you to understand and follow along.

This is the step-by-step process to purchase a property in Frankfurt:

  1. Check residency requirements as they can affect property purchase.
  2. Obtain a tax number (Steueridentifikationsnummer) from the local tax office.
  3. Research financing options from German banks or international lenders.
  4. Engage a licensed real estate agent (Immobilienmakler) familiar with Frankfurt's market.
  5. Provide a valid passport and residency permit (Aufenthaltstitel) when making an offer.
  6. Negotiate the "Kaufvertrag" (purchase contract) with the seller and include a cooling-off period.
  7. Pay a deposit (Anzahlung) into an escrow account.
  8. Arrange for a notary (Notar) to oversee the contract signing and property transfer.
  9. Obtain a "Grundbuchauszug" (land registry extract) to verify property ownership and debts.
  10. Complete a thorough property inspection (Bauabnahme) and an appraisal (Immobilienbewertung).
  11. Finalize mortgage approval (Hypothekenzusage) and submit required documents.
  12. Register the property with the local authorities (Bürgeramt) to finalize the purchase.

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.

Make a profitable investment in Frankfurt

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buying property in Frankfurt

Where to find a property

Explore these websites to find properties in Frankfurt:

  • 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.

Properties & Budget

As mentioned before, the average price per sqm in Frankfurt is $8,000. A 1-bedroom property with 60 square meters would cost approximately $480,000, and a 2-bedroom with 85 square meters would cost around $680,000.

However, prices will change based on both the property itself and its location.

Prices are higher in the upscale parts of Frankfurt. For approximately $1,510,000, you could get a house in Westend, but a house in Nordend might be priced at $1,400,000.

Certain places come obviously with a lower price tag. You could find an apartment in Griesheim for $260,000, or you may come across onet in Höchst priced at $220,000.

Find a more detailed price list in our full pack for buying property in Germany.

Mistakes to avoid

Here are the main pitfalls when buying a property in Frankfurt, Germany:

  • Property transfer tax: Germany imposes a 3.5-6.5% tax on property purchases, increasing overall acquisition costs.
  • "Kaltmiete" vs. "Warmmiete": Beware of additional utility costs (Warmmiete) not included in the rent (Kaltmiete) for rental properties.
  • Rent cap regulation: Frankfurt had a rent cap law, which might impact rental income and investment returns.
  • "Erbbaurecht" properties: Some properties are subject to leasehold agreements, not full ownership, affecting long-term investments.
  • Heritage-protected properties: Historical buildings come with strict renovation regulations and potential cost burdens.
  • Energy performance certificate: Ensure the property has a valid energy certificate, as it's required by law during property transactions.
  • German language contracts: Legal documents may be in German, requiring translation or legal assistance for non-German speakers.
  • Capital gains tax: Selling within ten years of purchase can result in a capital gains tax liability on the property's appreciation.

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.

real estate Germany

Everything you need to know is included in our Germany Property Pack

Living in Frankfurt

Frankfurt is a vibrant city with a strong economy, excellent public transportation, and a wide range of cultural and leisure opportunities, making it an ideal place to buy property.

Cost of living

The cost of living in Frankfurt is generally quite high, especially for rent. Prices for food, clothing, and entertainment are also higher than in many other cities in Germany.

Here are some examples to better understand the cost of living in Frankfurt:

  • Monthly rent for a modern apartment in the trendy Sachsenhausen neighborhood: €1,200-€2,500.
  • A glass of Ebbelwoi (Frankfurt's apple wine) at a traditional Apfelweinwirtschaft: €3-€5.
  • Monthly transportation pass for zones 1-5, including RMV regional trains: €100-€150.
  • A bottle of local Frankfurter Grüne Soße (green sauce) from a market: €2-€4.
  • Admission to the Städel Museum: €10-€15.
  • Monthly membership at a Frankfurt-based fitness studio or CrossFit box: €50-€100.
  • Fresh produce from the Kleinmarkthalle for a week: €30-€50.
  • A bottle of local Apfelkorn (apple liqueur) from a liquor store: €10-€20.


Since we aim to make information easy to understand, we've created a summary table outlining the different neighborhoods in Frankfurt. For yields, prices and rents, check our property pack.

Neighborhood Description Strengths Weaknesses


Sachsenhausen is a historic neighborhood known for its charming old buildings and lively nightlife.

Rich cultural heritage, vibrant entertainment options.

Parking can be challenging, can get crowded during weekends.


Bornheim is a trendy area with a mix of young professionals and families, offering various boutique shops and cafes.

Hip atmosphere, diverse dining choices.

Rising property prices, limited green spaces.


Nordend boasts beautiful parks, spacious squares, and a thriving community of artists and intellectuals.

Abundant green spaces, vibrant arts scene.

Can be expensive to live in, limited parking.


Westend is an upscale area with luxurious apartments, embassies, and the Palmengarten botanical garden.

Elegant architecture, proximity to parks.

High living costs, limited affordable housing.


Bockenheim is a lively student quarter with the Goethe University and a wide range of international eateries.

Diverse food options, vibrant student life.

Noisy at times, can get crowded during peak hours.


Ostend is an up-and-coming neighborhood with a mix of industrial and residential areas, attracting young professionals and artists.

Artistic vibe, growing cultural scene.

Some areas may still be underdeveloped, limited public transportation options.


Rödelheim is a family-friendly neighborhood with a village-like atmosphere, offering good schools and parks.

Quiet and peaceful, strong sense of community.

Limited nightlife options, longer commute to the city center.


Sindlingen is a green and tranquil area with a mix of residential and rural landscapes, attracting nature lovers.

Beautiful natural surroundings, peaceful environment.

Farther from the city center, limited shopping and dining options.

Life in Frankfurt

Frankfurt is the financial hub of Germany, with a strong economy and a highly developed infrastructure. It is home to the European Central Bank, and is a major banking and finance center in Europe, with many international companies based there.

What expats usually like the most in Frankfurt is the unique mix of modern architecture and traditional German culture, as well as the city's vibrant nightlife and excellent transportation system.

Unfortunately, there is still a bit of crime in Frankfurt (the crime rate index is around 45, which is not so favorable. Examples of crimes in Frankfurt include theft, vandalism, drug possession and trafficking, assault, and fraud, which are all crimes that occur among the local population and do not typically affect the expat population.

A good point for a property investor - Frankfurt has a comprehensive network of U-Bahn (underground) and S-Bahn (suburban rail) lines for rapid transit.

Access to healthcare in Frankfurt is excellent, with a Healthcare Index of 74. A strong healthcare system and infrastructure will always make a place more attractive, which is positive for real estate.

Finally, it is worth noting that the Goethe University Frankfurt ranks among the top 300 universities in the world.

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Renting out in Frankfurt

This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.


Tenant Profiles in Frankfurt

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 Frankfurt, 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 to move to the city. Frankfurt also has a large student population, so student tenants may be an option as well.

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 Sachsenhausen

Professionals, students

Central location, culture

$800 - $2,000

Studio in Westend

Youth, young professionals

Urban living, amenities

$700 - $1,500

House in Niederrad

Families, expats

Suburban area, green spaces

$1,000 - $2,500

Condo in Bockenheim

Young professionals, couples

Modern living, university

$800 - $2,000

2-Bedroom Apartment in Bornheim

Families, working professionals

Residential area, facilities

$900 - $2,200

Penthouse in Nordend

Executives, upscale renters

Luxury living, city views

$1,500 - $3,500

1-Bedroom Apartment in Gallus

Singles, young professionals

Urban lifestyle, accessibility

$700 - $1,500

Rental yields

As of today, rental yields in Frankfurt are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.

Rental yields in Frankfurt are usually best for properties that are centrally located, close to amenities such as transport links, shops, and restaurants, as these tend to be the most desirable and sought-after locations. Additionally, properties located in student-heavy areas tend to have higher yields due to the higher demand for rental accommodation.

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 Frankfurt are taxed at 10%, which is very advantageous.


You could also decide to rent short-term to business travelers, tourists, and students visiting Frankfurt. Additionally, you could target young professionals relocating to the city for work.

If you decide to go with that option, look for properties in the Sachsenhausen and Nordend districts of Frankfurt. Both areas are popular with tourists and have a lot of short-term rental opportunities.

Currently, there are approximately 1,530 active Airbnb listings in Frankfurt, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $113.

You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Frankfurt can make around $1100 per month. Also, the average occupancy rate is estimated at 50%.

Is it worth buying real estate in Frankfurt then?

Buying property in Frankfurt can be a fantastic idea if you're planning to settle down in the city for the long haul. Frankfurt boasts a robust real estate market, offering a stable investment opportunity with the potential for capital appreciation. The city's low mortgage rates make owning property financially advantageous compared to renting, particularly if you're considering a permanent residence.

Moreover, the diverse range of property types, from apartments to houses and commercial spaces, ensures you can find a property that suits your needs.

Investing in Frankfurt's real estate can also provide a reliable source of rental income, especially if you target young professionals, expats, students, or tourists. Despite moderate rental yields, the steady demand for rental properties can offer consistent returns.

The city's strong infrastructure, including excellent public transportation, healthcare facilities, and educational institutions, makes it a desirable location for both residents and renters. Additionally, favorable taxation on rental income, with a low 10% rate, sweetens the deal for property investors.

However, if your stay in Frankfurt is short-term, or you're on a tight budget, buying property may not be the most practical choice. Market conditions should also be monitored closely, as there's a potential risk of a housing bubble. Furthermore, navigating the complex process of purchasing property in Germany, without local knowledge, can lead to unexpected costs and challenges.

So, while buying property in Frankfurt is a strong proposition for long-term residents and investors, it may not be the best fit for everyone, depending on their circumstances and goals.

Make sure you understand the real estate market in Frankfurt

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.

real estate market Frankfurt

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.