Authored by the expert who managed and guided the team behind the Germany Property Pack
Yes, the analysis of Frankfurt's property market is included in our pack
Why is Frankfurt emerging as a prime destination for property investment in 2025? Is it the robust rental market, the city's status as a financial hub, or the relative affordability compared to other European capitals? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Frankfurt's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Frankfurt’s safe and stable market makes it a top choice for global real estate investors
Frankfurt is a magnet for global real estate investors because of its safe and stable investment environment.
Being part of the strong German economy, Frankfurt stands out even when times get tough. The city boasts a low unemployment rate, hinting at a thriving local economy. Plus, having the European Central Bank right in the city highlights its global financial significance, drawing in investors from all over.
Property values in Frankfurt are on the rise, with apartment prices jumping 4.33% in 2024 compared to the previous year. This uptick is fueled by a high demand for office space, thanks to international companies and businesses moving to Frankfurt after Brexit.
Frankfurt's location in Europe and its top-notch connectivity make it a prime spot for international businesses. The city offers a stable political environment and a strong legal framework that protects property rights, ensuring a secure investment landscape.
With a high quality of life and excellent infrastructure, Frankfurt continues to see a steady demand for residential properties. These factors, combined with its strategic position, make it a hub for investors looking for reliable returns.
Sources: BNP Paribas Real Estate, Global Property Guide, Deloitte Insights, European Commission
2) In Frankfurt, limited land in the city center means property prices keep rising
Frankfurt's city center property prices have soared due to limited land and high demand.
From 2015 to 2024, the average price per square meter jumped by 79%, reaching €6,937. This surge is largely because undeveloped land is scarce in central Frankfurt. The city's 2030 urban plan highlights the need to manage land use wisely to address urbanization and environmental concerns.
Frankfurt's appeal as a major financial hub and its high quality of life drive the demand for both residential and commercial properties. This demand, combined with the limited availability of land, keeps pushing prices up.
In the heart of the city, finding new plots for development is like searching for a needle in a haystack. This scarcity means that existing properties become more valuable, further inflating prices.
Investors and homebuyers are drawn to Frankfurt not just for its economic opportunities but also for its vibrant culture and excellent infrastructure. However, the limited space for expansion in the city center means that prices are likely to continue their upward trend.
For those considering buying property in Frankfurt, understanding these dynamics is crucial. The city's unique blend of financial prowess and limited land makes it a challenging yet potentially rewarding market.
Sources: EBP Global, DZ HYP Residential Market Report, Tranio
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) Frankfurt’s diverse job market means there’s a home for every budget
Frankfurt's job market is incredibly diverse, supporting a wide range of housing needs and price points.
The city is bustling with industries like finance, technology, and healthcare, offering numerous job opportunities for people with various skills. This attracts professionals with unique housing preferences and budgets. Imagine the international financial giants like Deutsche Bank and Commerzbank; they create a demand for housing that suits both high-income professionals and those in technical roles.
Tech companies such as Fraport AG add to this mix, while the healthcare sector's need for medical and nursing staff further diversifies the job market. These specialists often seek different types of housing, adding to the city's vibrant real estate scene.
As employment rates rise, so does the demand for housing. This is especially true for professionals who value flexible working models, like remote work, which is quite common in Frankfurt. The city's housing market is adapting by offering a variety of living styles and building types.
From tech-smart apartments to larger suburban homes, Frankfurt's real estate options are designed to meet the needs of its diverse population. This flexibility is a direct response to the city's varied job market, which supports a wide range of housing needs.
Sources: Frankfurt Tipp, Stadtplanungsamt Frankfurt, CBRE
4) Frankfurt’s trade fairs draw business travelers, making short-term rentals in high demand
Frankfurt's trade fairs and events are a magnet for business travelers, driving up demand for short-term rentals.
When these events roll into town, short-term rentals in Frankfurt see a surge in bookings, often reaching full occupancy. On average, a typical rental is booked for 219 nights a year, with a median occupancy rate of 60%. This means that during peak event times, finding a place can be quite the challenge.
Prices also climb during these bustling periods. Normally, the average daily rate for a short-term rental is around €78, but during trade fairs, it can spike significantly. Business travelers, eager to be close to the action, are willing to pay these higher rates, which further fuels the demand.
The Frankfurt Book Fair is a prime example, drawing in about 230,000 visitors in 2024. Many of these attendees are business travelers, and their presence directly boosts the need for short-term rentals. It's not just about the numbers; it's about the convenience and flexibility these rentals offer.
Local tourism boards consistently report high visitor numbers during these events, underscoring the strong demand for accommodations. Surveys reveal that business travelers often choose short-term rentals over hotels for their flexibility and personalized experiences, making them a preferred option during these busy times.
Sources: Airbtics, Statista, Grand View Research
5) In Frankfurt, you’ll find a strong rental market with steady income opportunities for investors
Frankfurt's rental market is a top choice for investors looking for steady income.
Rental prices in Frankfurt are on the rise, even after a slight dip in early 2022. The median rent stayed above the five-year average, and in the high-end market, prices climbed to 18.30 euros per square meter per month. This shows a strong market with promising returns.
Office spaces in Frankfurt are in high demand, with vacancy rates dropping to around 7.2% by mid-2024, down from 7.8% at the end of 2023. This is due to active leasing and limited new office developments, indicating a healthy appetite for rentals.
As a financial hub, Frankfurt draws in professionals and expatriates, boosting rental demand. Areas like Sachsenhausen, Westend, and Nordend are particularly appealing, offering a blend of modern living and historical charm, making them prime spots for property investment.
The city's robust economy and job growth further fuel the housing demand. With numerous international banks and financial institutions, Frankfurt's economy stays strong, ensuring consistent rental income for property owners.
Investors can feel confident in Frankfurt's market, where the combination of rising rents, low vacancy rates, and a thriving economy creates a reliable environment for rental income.
Sources: JLL Germany, IP Global, CIJ Europe
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6) Frankfurt’s urban projects boost property values in up-and-coming areas
Frankfurt is buzzing with urban development, and it's shaking up property values in emerging neighborhoods.
In Sachsenhausen, luxury housing projects are drawing in international buyers, which is driving up demand and property prices. Over in Westend, the limited housing stock and renovations of heritage buildings are making prime properties even more appealing, pushing prices higher.
Bornheim is also seeing a boost, thanks to large-scale urban regeneration projects and better public transport access. The city's focus on upgrading public transportation, like the bus ticketing system, is enhancing connectivity and making certain areas more attractive to potential buyers.
Frankfurt is tackling housing pressure by constructing 2,000 new apartments, including energy-efficient buildings and public facilities. This development is part of the city's housing policy and not only addresses housing needs but also adds to the city's overall appeal, further boosting property values.
These projects are transforming neighborhoods and making them more desirable, which is great news for potential property buyers. The ongoing urban development is a key factor in the rising property values, especially in areas that are becoming more connected and accessible.
Frankfurt's urban development is a game-changer, and it's worth keeping an eye on these emerging neighborhoods if you're considering buying property in the city.
Sources: AS+P Albert Speer + Partner GmbH, INIT SE, Mayors of Europe
7) Frankfurt’s history and architecture draw tourists, making it easy to rent out your property short-term
Frankfurt's rich history and stunning architecture have always drawn tourists in droves.
In 2023, the city celebrated its second-best tourism year ever, with over 10 million overnight stays and nearly 6 million guests. This surge highlights Frankfurt's growing charm and appeal to visitors.
The demand for short-term rentals is booming, with 1,058 active Airbnb listings as of September 2024. These properties are typically booked for 219 nights annually, boasting a 60% occupancy rate, which underscores the strong demand fueled by the tourist influx.
Germany's tourism revenue has been climbing, with a 14.2% increase in December 2023, following a massive rise the previous year. Frankfurt, with its historical and architectural allure, plays a significant role in this growth.
Frankfurt's bounce back to surpass pre-pandemic tourism levels showcases its lasting appeal. The city's rich history and architectural wonders are frequently spotlighted in media, enhancing its status as a must-visit spot.
Sources: Frankfurt Records Second Strongest Tourism Year Ever in 2023, Frankfurt Airbnb Market Statistics, Germany Tourism Revenue Growth
8) Frankfurt’s financial hub status draws many professionals looking for homes
Frankfurt is a top choice for professionals looking for housing due to its status as a major financial hub.
Since Brexit, many financial institutions have relocated to Frankfurt, bringing a wave of job opportunities. This influx naturally draws professionals from around the globe, eager to advance their careers in a thriving environment.
The city's population is steadily growing, reflecting the abundance of jobs in finance. With 202 banks and 7,900 financial services companies, Frankfurt offers a rich landscape of employment options, making it a hotspot for career-driven individuals.
Institutions like the European Central Bank and Deutsche Bank not only boost Frankfurt's financial clout but also attract a diverse mix of international professionals and expatriates. This diversity adds to the city's vibrant and dynamic atmosphere.
Living in Frankfurt means being part of a bustling community where career opportunities in finance are plentiful. The city's appeal is further enhanced by its cosmopolitan vibe, making it an attractive place for those seeking both professional growth and a lively lifestyle.
Sources: Global Connect Admin, JLL, Euronews
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) With efficient public transport, every area in the city becomes a desirable property location
Frankfurt's public transportation system is incredibly efficient, with a ridership of 147.9 million passengers in 2023.
In Germany, living near public transportation hubs often means higher property values. The introduction of the Deutschlandticket in 2023 boosted public transport use, which is linked to increased property values in well-connected areas. This trend shows that being close to public transport can make properties more desirable.
Real estate market reports frequently highlight the premium on properties near public transportation. In Frankfurt, areas like the Westend and Diplomatic Quarter have high property prices due to their excellent connectivity. People are willing to pay more for the convenience of easy access to public transport.
Efficient public transportation systems reduce commute times, making city living more appealing. In cities like Frankfurt, where public transport is well-developed, reduced commute times enhance the desirability of living in the city.
Frankfurt's public transport system makes all areas accessible, enhancing property desirability. The city's efficient network means that residents can easily reach any part of the city, making it a prime location for potential property buyers.
For those considering buying property in Frankfurt, the city's public transportation system is a major selling point. With such a robust network, the convenience of getting around adds significant value to properties in the area.
Sources: Clean Energy Wire, Engel & Völkers, Statista
10) Frankfurt’s prime location boosts real estate demand as a major business and trade hub
Frankfurt's central spot in Europe makes it a magnet for business and trade, driving up real estate demand.
With the European Central Bank headquartered here, Frankfurt is a financial powerhouse. This attracts banks and finance pros, pushing up the need for office spaces. The financial sector's low vacancy rate of 6% shows just how hot the market is for office space and data centers.
Frankfurt Airport is a major player, being Germany's busiest and Europe's 6th busiest airport. It links to 330 destinations worldwide, making Frankfurt a prime spot for global business. The airport's heavy cargo traffic adds to its strategic clout.
Even with a dip in space take-up, there's still a buzz for top-notch office spaces, especially downtown. The rise in prime rent points to a strong real estate scene. Plus, Frankfurt's property prices keep climbing, and the city offers high rental yields compared to other European hotspots, making it a smart investment choice.
Sources: World Population Review, Avison Young, Wikipedia, CBRE
11) Living near the Rhine-Main region in Frankfurt gives you extra lifestyle and recreational perks
Frankfurt's closeness to the Rhine-Main region offers a fantastic lifestyle and recreational perks for its residents.
In recent years, Frankfurt has consistently ranked high in quality of life, snagging the 6th spot in the Mercer Quality of Living City Ranking and being named the 7th-best international city for quality of living. This high standard is largely thanks to its prime location.
The area is famous for its abundant green spaces and parks, which locals and tourists love. Frankfurt shines in green space availability, making it a haven for outdoor lovers. Plus, the stunning Rhine River is just a stone's throw away, offering breathtaking views and fun activities like river cruises.
Wine enthusiasts will be thrilled with the Rhine-Main region's renowned vineyards and wine culture. You can indulge in wine tasting and explore the local wine scene. The nearby Taunus and Odenwald mountain ranges are perfect for hiking and soaking in nature, ideal for those who crave outdoor adventures.
Living in Frankfurt means having easy access to these natural wonders and cultural experiences, enhancing everyday life. The city's strategic location not only boosts its charm but also offers a unique blend of urban and natural attractions.
Sources: Place Brand Observer, Viator, Viva Cruises, IAmExpat
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12) Frankfurt’s airport boosts connectivity, attracting global investors
Frankfurt's international airport is a key player in global connectivity, attracting investors worldwide.
In 2023, the airport saw a 21.3% jump in passenger numbers, reaching 59.4 million. This impressive recovery highlights Frankfurt's role in global air travel. The airport isn't just about passengers; it's also Europe's busiest for cargo traffic, making it a vital hub for moving goods globally.
Frankfurt Airport's extensive network of international destinations makes it a strategic choice for businesses aiming to expand. The presence of major airlines, especially Lufthansa, which uses Frankfurt as its main hub, ensures access to a wide range of destinations. This connectivity is a big draw for investors looking to tap into international markets.
Located near major business districts and financial centers, the airport offers easy access to key economic areas. This proximity enhances its appeal, providing a seamless connection between air travel and business opportunities.
Frankfurt's airport is not just a transit point; it's a gateway to global business. Its strategic location and robust infrastructure make it an attractive option for investors. The airport's ability to connect people and goods across the globe is a testament to its importance in the world of international travel and commerce.
Sources: AJOT, International Airport Review, AviTrader
13) Frankfurt’s strong healthcare system makes it appealing for both retirees and families
Frankfurt's healthcare system is a big draw for retirees and families because of its top-notch hospitals and medical facilities.
The University Hospital in Frankfurt stands out with its exceptional care and cutting-edge treatments, making it one of Germany's top medical institutions. This isn't just talk; it's backed by high national rankings that reflect its stellar reputation.
Frankfurt is packed with healthcare options, including the well-known Helios Hospital Berlin-Buch, which has over 60 departments offering comprehensive care. This means residents can easily find specialists for all sorts of health needs, ensuring they get the right care when they need it.
Investments in healthcare infrastructure are also a big plus. For instance, the 5G network at Frankfurt University Hospital boosts the efficiency and accessibility of medical services. This tech upgrade allows for quick and secure communication among healthcare providers, which is a game-changer for patient care.
With so many medical professionals and facilities, residents enjoy specialized outpatient care that covers a wide range of health issues. This abundance of resources makes it easier for families and retirees to manage their health effectively.
Frankfurt's healthcare system is not just about quantity but quality, with a focus on advanced technology and infrastructure that supports better patient outcomes. This makes the city an attractive option for those considering a move.
Sources: Booking Health, Commonwealth Fund, Vodafone
14) Frankfurt’s top-notch digital infrastructure boosts remote work, driving up demand for homes
Frankfurt's digital infrastructure is a major draw for those considering buying property in the city.
In recent years, internet speeds in Frankfurt have surged by 73%, making it a haven for remote workers. This boost means many residents now enjoy lightning-fast connections, perfect for working from home. With such reliable internet, people can easily set up efficient home offices, a necessity in today's work-from-anywhere world.
The shift towards remote work is not just a trend; it's becoming the norm. Many companies in Germany are embracing hybrid and remote-first models, driven by the desire for better work-life balance and flexibility. This change has naturally led to a higher demand for homes that can double as workspaces, as more people seek properties that accommodate their new work lifestyles.
Germany's coworking spaces have nearly doubled in size, reflecting a growing need for flexible work environments. This trend highlights that people are not just looking for a place to live but a space that supports their professional needs. The German government is also playing a part by investing in expanding broadband coverage, ensuring that remote workers have the infrastructure they need to thrive.
Frankfurt's appeal is further enhanced by its efficient digital setup, which supports remote work seamlessly. This has made the city a hotspot for those looking to buy residential properties that cater to both living and working needs. The demand for such homes is on the rise, as more people recognize the benefits of having a dedicated workspace at home.
For anyone considering a move, Frankfurt offers a unique blend of fast internet, flexible workspaces, and a supportive environment for remote work. It's no wonder that the city's real estate market is buzzing with activity, as more people seek out properties that fit their evolving lifestyles.
Sources: Fair Internet Report, Social Workplaces, Splashtop
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) With many students in the city, there’s a strong demand for rental properties
Frankfurt is buzzing with students, over 15,000 of them, thanks to its renowned educational institutions like the Frankfurt University of Applied Sciences.
These students, hailing from more than 100 countries, are not just here for the books; they need places to live, and they often want to be close to campus, which means rental properties are in hot demand.
With a vacancy rate of less than 0.5% in the apartment market, it's clear that finding a place to rent in Frankfurt is like finding a needle in a haystack, especially for students.
Rental prices in areas around universities are climbing, with a 7% increase in A-cities like Frankfurt, reflecting the intense competition for housing driven by the student influx.
Even though there are on-campus housing options, many students opt for off-campus living due to better amenities and affordability, further fueling the demand for rentals.
Media outlets are buzzing about the student housing shortage in Frankfurt, highlighting the urgent need for more rental properties to accommodate the growing student population.
Real estate experts are noticing this trend, with many investors now focusing on developing student housing projects to meet the rising demand.
Sources: EduRank, BNP Paribas Real Estate, REFIRE Online, Multi-Housing News, Shiksha
16) Frankfurt is ideal for expat families because of its excellent international schools
Frankfurt's international schools are a major attraction for expatriate families seeking quality education.
With 1829 students from over 60 nationalities at the Frankfurt International School, these institutions are a melting pot of cultures, making them a top choice for families worldwide. This diversity not only enriches the learning environment but also helps children develop a global perspective.
Frankfurt's international schools consistently rank high in global education reports, reflecting their strong academic standards. The Frankfurt International School, one of Europe's oldest and largest, boasts a remarkable 92% IB Diploma pass rate for the Class of 2023, giving parents confidence in the education their children will receive.
Families are also drawn to the variety of curricula available, including the International Baccalaureate, British, and American systems. This flexibility in educational programs allows families to choose a school that best fits their needs and expectations, ensuring a tailored educational experience.
Frankfurt's multicultural environment, with over a quarter of residents holding foreign citizenship, makes it a welcoming city for expatriates. This diversity helps families integrate smoothly, creating a sense of belonging and community.
The city's reputation as a top destination for expatriates is further enhanced by media coverage, highlighting its appeal. This makes Frankfurt not just a place to live, but a vibrant community where families can thrive.
Sources: FIS Profile, International Schools Database
17) Frankfurt’s focus on sustainability and green building makes properties more attractive
The city's focus on sustainability and green building practices has made properties more appealing.
In Frankfurt, green-certified buildings are selling at higher prices because they offer energy efficiency and lower operating costs. This is a big draw for buyers who are looking to save money in the long run. The trend is especially noticeable in the commercial real estate sector, where green office buildings make up a significant part of the investment volume. Investors are keen on these properties because they promise lower expenses and a better return on investment.
There's a growing demand for eco-friendly homes worldwide, and this preference is reflected in higher occupancy rates for green buildings. People are not just buying these homes; they are staying longer, which means longer lease durations. This is great news for landlords and property managers who want stable, long-term tenants.
The German government is also playing a crucial role by actively promoting sustainable construction practices. Their initiatives have helped boost the green buildings market in Frankfurt, making it a hotspot for eco-friendly real estate. This government support is a key factor in why green buildings are becoming more popular in the city.
For those considering investing in property, it's worth noting that green-certified buildings are not just a trend; they are becoming the norm. As more people become environmentally conscious, the demand for these types of properties is only expected to grow. This shift is not just about saving the planet; it's also about making smart financial decisions.
So, if you're thinking about buying property in Frankfurt, consider going green. It's a choice that aligns with both environmental values and financial savvy. The city's commitment to sustainability and green building practices increases property appeal.
Sources: Born2Invest, Green Design Consulting, GlobeNewswire, BNP Paribas Real Estate
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.