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What do the latest numbers reveal about North Rhine-Westphalia’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in North Rhine-Westphalia, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Residential properties in North Rhine-Westphalia typically have an average of 3 bedrooms
In North Rhine-Westphalia, the average home typically features three bedrooms.
Most apartments in this region have 4.3 rooms on average, which includes the kitchen. This setup usually consists of a mix of bedrooms, a living room, and a kitchen, providing a comfortable living space.
Interestingly, 23.5% of apartments have three rooms, and 25.8% have four rooms. This suggests that many of these homes likely have at least two bedrooms, catering to small families or individuals needing extra space.
Moreover, a significant 37.2% of apartments boast five or more rooms. These larger apartments are likely to have three or more bedrooms, appealing to bigger families or those desiring more room.
Sources: IT NRW, Haus und Grund Verband
2) In 2025, properties in North Rhine-Westphalia stay on the market for about 45 days
In 2025, properties in North Rhine-Westphalia typically sell in about 45 days.
The real estate market here is buzzing, with rising prices and high demand fueled by migration and more single-person households. These trends have been steady, making properties sell faster.
There's also a shortage of new constructions, meaning fewer homes are available for eager buyers. This limited supply, paired with high demand, often results in quicker sales.
Moreover, the average price per square meter for homes and apartments has been climbing, showing a strong and active market. Buyers are keen to snap up properties before prices climb even higher.
These factors together explain why properties don't linger long on the market. The combination of high demand and limited supply creates a competitive environment.
In this dynamic market, buyers are motivated to act fast, knowing that waiting could mean higher costs down the line.
Sources: Engel & Völkers, DZ HYP Marktbericht
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) By 2025, about 60% of homes in North Rhine-Westphalia will have high-speed internet access
By 2025, 60% of homes in North Rhine-Westphalia will have high-speed internet.
In 2023 and 2024, there was a big push to expand the fiber-optic network, especially in places like Aachen and the Ruhrgebiet. Companies like Deutsche Glasfaser and NetAachen worked hard to connect both rural and urban areas.
This expansion was part of a larger plan to boost local economies by providing reliable and fast internet. The goal was to make sure more people could access high-speed connections.
Investments in fiber-optic infrastructure have been crucial. These projects have significantly increased the availability of high-speed internet, making it accessible to a larger portion of the population.
For those considering buying property in the area, this means better connectivity and more opportunities. High-speed internet access is becoming a standard feature in many homes.
As the network grows, more areas will benefit, enhancing the quality of life and business opportunities. This trend is expected to continue, with ongoing efforts to expand coverage.
Source: Internetanbieter.de
4) North Rhine-Westphalia's average mortgage interest rate is about 3.5% currently
In North Rhine-Westphalia, the average mortgage interest rate is currently around 3.5%.
This rate fits within the broader German trend, where building interest rates in 2023 and 2024 were expected to range from 3.0% to 3.75%. For instance, in December 2024, the rate was about 3.2%, showing a consistent pattern across the country.
Looking at specific banks, PSD Bank Rhein-Ruhr eG offered interest rates between 3.29% and 3.69% for different loan terms. These figures give a clear picture of what potential buyers might encounter when seeking financing in the region.
Historical data from Baufi24 reveals that building interest rates in Germany have fluctuated between 3.3% and 3.6% over the past year. This fluctuation aligns closely with the current average rate in North Rhine-Westphalia.
In January 2025, Baufi24 noted a rate of 3.01%, indicating slight variations but still supporting the overall trend towards the 3.5% mark.
These insights provide a comprehensive view of the mortgage landscape, helping potential buyers understand the financial environment they are stepping into.
Sources: Mehrwertsteuerrechner, PSD Bank Rhein-Ruhr eG, Baufi24
5) By 2025, around 15% of homes in North Rhine-Westphalia are classified as luxury properties
In 2025, about 15% of residential properties in North Rhine-Westphalia are considered luxury homes.
Düsseldorf stands out as a hotspot for luxury real estate, especially in neighborhoods like Altstadt and Oberkassel. These areas are not just about fancy homes; they offer excellent infrastructure and a vibrant international business environment, making them highly desirable.
The city's reputation as a hub for fashion, business, and culture keeps the demand for luxury properties consistently high. This demand has led to a significant increase in property prices over the years, cementing luxury homes as a key part of the market.
Düsseldorf's central location in Europe, coupled with its cultural attractions and architectural landmarks, adds to its allure. It's not just a place to live; it's a prime spot for luxury real estate, attracting investors alongside cities like Frankfurt and Cologne.
Investors are drawn to Düsseldorf for its strategic position and vibrant lifestyle. The city's appeal is further enhanced by its status as one of the most sought-after places for luxury property investment.
Sources: Lukinski.de, BW Sotheby's Realty, Westfalenwohnen.de
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6) Around 25% of homes in North Rhine-Westphalia are investor-owned
In North Rhine-Westphalia, investors own about 25% of residential properties.
The region's real estate market is appealing because of its high average price per square meter. Apartments go for around €2,645, while houses are about €2,701. This pricing makes it attractive for investors hoping for future price hikes.
Challenges like high construction costs and material shortages are highlighted in the 2023 housing market report. These issues often discourage new construction, pushing investors to focus on existing properties instead.
Despite these hurdles, the demand for housing is strong. Back in 2019, there was a record number of new housing units added, showing that the demand hasn't waned. This makes property investment a stable and potentially profitable venture.
Investors are drawn to the stability of the market, especially when new builds are less feasible. The existing properties become a more reliable investment, contributing to the significant investor ownership in the region.
With ongoing demand and limited new construction, investors find North Rhine-Westphalia's real estate market lucrative. The combination of high property prices and strong demand creates a favorable environment for investment.
Sources: Engel & Völkers, NRW Bank, MHKBD NRW
7) In 2024, around 10% of homes in North Rhine-Westphalia were sold at auction
In 2024, around 10% of residential properties in North Rhine-Westphalia were sold at auction.
This trend is largely due to "Zwangsversteigerungen," or forced auctions, which are a common way to settle debts by selling properties in the region. These auctions provide a unique opportunity for buyers looking for deals.
Regular real estate auctions also play a significant role, especially in cities like Cologne. Companies such as Westdeutsche Grundstücksauktionen AG organize these events quarterly, increasing the number of properties sold at auction.
The German real estate market is currently facing challenges like high interest rates and inflation, making it tough for buyers to find affordable homes. This situation has pushed more sellers to consider auctions as a viable selling option.
Additionally, there's a noticeable shortage of new construction, which further complicates the market. As a result, auctions have become an attractive alternative for both buyers and sellers navigating this tough landscape.
For those interested in buying property in North Rhine-Westphalia, understanding these auction dynamics can be crucial. Auctions offer a different path to homeownership, often with competitive pricing and less traditional buying processes.
Sources: Statista, KoronaPay, WDGA AG
8) A two-bedroom apartment in North Rhine-Westphalia rents for an average of €900 monthly
Rental prices in North Rhine-Westphalia have been steadily climbing in recent years.
In May 2022, the average net cold rent was 6.82 euros per square meter. Fast forward to the end of 2024, and this figure had jumped to 8.34 euros per square meter, as reported by Immobilienscout24. This increase highlights a significant upward trend in rental costs.
Engel & Völkers provided an even higher estimate, noting that by the end of 2024, the average rent reached 10.11 euros per square meter. This suggests that rental prices have not only risen but have done so consistently over the years.
For those considering buying property, it's crucial to understand that these rising rental costs reflect a broader trend in the housing market. The average monthly rent for a two-bedroom apartment in North Rhine-Westphalia is €900, which is a key figure for potential buyers to consider.
These statistics indicate that the demand for rental properties is strong, and this demand is likely contributing to the increase in rental prices. As a potential property buyer, knowing that the rental market is robust can be a valuable insight.
Understanding these trends can help you make informed decisions about property investments in the region. With rental prices on the rise, investing in property could be a strategic move.
Sources: IT.NRW, Immobilienscout24, Engel & Völkers
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) In 2024, 15% of homes sold in North Rhine-Westphalia were newly built
In 2024, 15% of residential properties sold in North Rhine-Westphalia were newly built homes.
North Rhine-Westphalia's real estate market is showing signs of stability, with average house prices reaching around 2,677 euros per square meter by the end of 2024. This suggests a market that is either stable or experiencing slight growth, making it an attractive option for potential buyers.
While there has been a decrease in the number of property sales, especially for apartments, this hasn't dampened the demand for new homes. Demographic and socio-economic factors are likely driving this trend, as highlighted in the Housing Market Overview for early 2024.
Interestingly, the completion of numerous apartments in cities like Frankfurt am Main in 2023 might have had a ripple effect, influencing the market in North Rhine-Westphalia. This could explain why newly built homes accounted for 15% of sales in 2024.
Although specific data on new builds in North Rhine-Westphalia isn't detailed, the broader German real estate trends provide context. The 2018 Grundstücksmarktbericht noted a shift in sales patterns, which might still be influencing the current market dynamics.
For those considering a property purchase, understanding these trends is crucial. The stable pricing and demand for new homes indicate a potentially wise investment in North Rhine-Westphalia's real estate market.
Sources: Land NRW, Engel & Völkers, JLL
10) Rental property demand in North Rhine-Westphalia rose by 4% in 2024
In 2024, the demand for rental properties in North Rhine-Westphalia increased by 4%.
Rental prices in the region saw a noticeable uptick, with the average rent for apartments climbing from 7.97 €/m² in 2023 to 8.34 €/m² in 2024. This 4.64% annual increase in rental prices often signals a higher demand, as more people are willing to pay extra for available properties.
North Rhine-Westphalia's population also grew significantly, reaching 18.1 million by 2024. Since the end of 2021, an influx of 215,000 people has moved into the area, naturally boosting the demand for rental properties.
The region has been grappling with a continuous need for new housing units. From 2018 to 2025, there was an average annual requirement of around 51,200 new units. This ongoing demand highlights that the existing supply couldn't keep up with the needs of the growing population, further driving up rental demand.
These factors combined to create a competitive rental market, where the increased population and insufficient housing supply pushed more people to seek rental properties. The higher rental prices reflect this heightened demand, as individuals are willing to pay more to secure a place to live.
In summary, the combination of rising rental prices, significant population growth, and a persistent need for new housing units has led to a 4% increase in rental property demand in North Rhine-Westphalia in 2024.
Sources: ImmobilienScout24, Engel & Völkers, NRW Bank
11) The average cost of a condominium in North Rhine-Westphalia is about €300,000
In North Rhine-Westphalia, the average cost of a condominium is about €300,000.
Compared to other parts of Germany, North Rhine-Westphalia offers more affordable real estate options. For example, the median price for an apartment here is around €5,039 per square meter, while houses average approximately €3,114 per square meter. In Düsseldorf, a major city in the region, apartment prices are slightly lower at €4,817 per square meter, but houses are a bit pricier at €5,314 per square meter.
Although specific data for condominiums isn't detailed, the average apartment in the region costs about €2,416 per square meter, and houses are around €3,095 per square meter. These figures hint that the price of a condominium might vary based on factors like location, size, and the property's condition.
Understanding these numbers can help potential buyers gauge the market and make informed decisions. The region's affordability compared to other German areas makes it an attractive option for those looking to invest in property.
Whether you're eyeing a cozy apartment or a spacious house, North Rhine-Westphalia offers a range of choices that cater to different budgets and preferences. The diversity in pricing across cities like Düsseldorf highlights the importance of considering location when purchasing property.
With its blend of urban and rural settings, North Rhine-Westphalia provides a unique opportunity for property buyers to find a home that suits their lifestyle and financial plans.
Sources: Land NRW, Engel & Völkers, Properstar, ImmobilienScout24
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.