Is buying a property in Sachsenhausen a good investment?

Last updated on December 29, 2023

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

If you've enjoyed the riverside atmosphere and historic pubs of Sachsenhausen, you might have thought about investing in property in this Frankfurt district.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Germany, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Sachsenhausen?

Sachsenhausen, a district in Frankfurt, has garnered attention from property buyers for a variety of reasons, making it a noteworthy choice in the real estate market.

What sets Sachsenhausen apart is its unique blend of urban convenience and cultural richness. It's known for its vibrant streets, dotted with cafes, museums, and art galleries, which offer a lifestyle that's both cosmopolitan and steeped in local tradition.

This contrast is particularly appealing when compared to other areas in Frankfurt, which may lean more towards either a purely modern or a traditional setting.

Historically, Sachsenhausen began to rise in popularity as a real estate destination in the early 2000s. This trend was fuelled by the area's redevelopment, enhancing its appeal while retaining its historic charm.

The question of whether this popularity will sustain depends largely on its continued balance of modernity and heritage. The fact that it has maintained its appeal for over two decades suggests a certain resilience and enduring charm.

The type of people attracted to Sachsenhausen is diverse, but you'll find that many are drawn to its cultural vibrancy and urban sophistication.

It appeals to a range of individuals from young professionals to art enthusiasts and families, all seeking a blend of a lively social scene and a touch of historical ambiance. This diversity is one of Sachsenhausen's strengths, as it creates a dynamic and inclusive community.

However, like any area, Sachsenhausen has its weaknesses. One notable concern is the cost of living, which has risen as the area has become more popular. This might be a deterrent for some, especially those looking for more affordable housing options.

Additionally, the bustling nature of the district can sometimes translate into noise and a fast-paced environment, which might not be ideal for those seeking a quieter, more laid-back lifestyle.

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Why is Sachsenhausen a nice place to live?

Sachsenhausen is renowned for offering a lifestyle that's both culturally rich and comfortably urban.

This area stands out with its unique blend of historic charm and modern amenities, creating an environment that's both vibrant and welcoming.

The lifestyle and culture in Sachsenhausen are marked by a lively social scene. It's a place where historical sites like the Städel Museum, which houses an impressive collection of art, coexist with bustling markets and cozy cafes.

The district is also famous for its “Apfelwein” taverns, which are a testament to the local tradition and provide a great way to immerse yourself in the local culture.

For expatriates, Sachsenhausen is particularly appealing. The international community here is thriving, fostered by the cosmopolitan nature of Frankfurt.

This makes it easier for newcomers to find like-minded individuals and to ease into life in a new city. The presence of international schools like Strothoff International School adds to its allure for expat families.

However, the cost of living in Sachsenhausen is relatively high, reflecting its popularity and the quality of life it offers. Rent and property prices tend to be above average compared to other parts of Frankfurt. While this might be a consideration, many find the cultural richness and lifestyle worth the expense.

Safety is another strong point for Sachsenhausen. It's generally considered a safe area with a low crime rate, which adds to its appeal for families and professionals alike.

Regarding amenities, Sachsenhausen is well-equipped. There are numerous healthcare facilities, including Krankenhaus Sachsenhausen for medical needs.

Shopping enthusiasts will appreciate the proximity to shopping centers like Südpassage Sachsenhausen. The area also boasts a variety of educational institutions, catering to different educational needs.

The infrastructure in Sachsenhausen is robust. Roads are well-maintained, and utility services like electricity and water supply are reliable. Internet connectivity is excellent, fitting for an area within a major city like Frankfurt.

Accessibility is another highlight. Sachsenhausen is well-connected to other parts of Frankfurt, making commuting relatively easy. It's also conveniently located near major transport hubs, including Frankfurt Airport, which is a significant advantage for frequent travelers.

Public transportation options in Sachsenhausen are ample. The district is served by various U-Bahn (subway) and S-Bahn (suburban train) lines, as well as numerous bus routes.

This network makes it easy to navigate not only within Sachsenhausen but also to other parts of Frankfurt and beyond.

How much does it cost to buy real estate in Sachsenhausen?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Germany.

In Sachsenhausen, the real estate market is quite diverse, offering a range of properties from apartments and houses to more luxurious villas.

Each type of property caters to different needs and lifestyles, which is part of what makes Sachsenhausen an attractive area for a variety of buyers.

Apartments, particularly those that blend modern amenities with the district’s historic charm, are in high demand. This preference is driven by a combination of factors such as the urban lifestyle, proximity to cultural and social hotspots, and the general preference for low-maintenance living spaces among professionals and small families.

Houses and villas, while less prevalent than apartments, cater to those seeking more space and privacy, often attracting larger families or those seeking a more luxurious living standard.

The real estate market in Sachsenhausen features a mix of both new developments and resale properties. New developments often come with modern amenities and energy-efficient designs, which are increasingly popular.

Resale properties, on the other hand, often boast historical significance and unique architectural features, appealing to those who value traditional charm.

Price-wise, Sachsenhausen is on the higher end of the spectrum in Frankfurt. The prices per square meter can vary significantly based on factors like the property’s size, condition, location within the district, and the type of property.

Generally, you can expect prices to range significantly, reflecting the diverse nature of the housing stock in the area.

Over recent years, property values in Sachsenhausen have seen a steady increase. This trend is attributed to the district’s growing popularity, its cultural and historical appeal, and the overall real estate market dynamics in Frankfurt. Future developments and city planning changes can potentially impact property values.

For example, any new public transportation links or cultural developments could make the area even more attractive, thereby increasing property values.

Predicting the real estate market’s future can be challenging, but Sachsenhausen, given its enduring appeal and continuous development, is likely to remain a sought-after area.

Factors that indicate a potential increase in value include the ongoing demand for housing in Frankfurt, the district's popularity among both locals and expatriates, and the potential for new developments that enhance the area’s livability and connectivity.

Where is the best area to buy a property in Sachsenhausen?

When considering where to buy a property in Sachsenhausen, it's important to understand that different parts of this district offer distinct atmospheres, property types, and price ranges.

Sachsenhausen is a diverse area with each neighborhood catering to different preferences and lifestyles.

One of the most sought-after parts of Sachsenhausen is the area close to the Main River, often referred to as Sachsenhausen-Nord. This area is known for its picturesque streets, vibrant cultural scene, and proximity to the river, which offers stunning views and leisure opportunities.

Properties here mostly consist of well-maintained old buildings and some new developments.

The atmosphere is lively yet retains a historical charm, appealing to those who appreciate an urban lifestyle mixed with historical elements. Due to its popularity and location, property prices in this area tend to be on the higher side.

Alternatively, the southern part of Sachsenhausen, known as Sachsenhausen-Süd, offers a more tranquil setting. It's characterized by a more residential atmosphere with a mix of modern and traditional homes.

The property types here range from apartment buildings to standalone houses, catering to families and individuals seeking a quieter environment. While still well-connected to the city center, this area generally has more affordable property prices compared to Sachsenhausen-Nord.

An up-and-coming area within Sachsenhausen to keep an eye on is the vicinity around the Lokalbahnhof. This area has been undergoing gradual development, attracting interest for its potential growth and modernization.

Properties here might offer a good balance of value and future appreciation, making it a smart choice for both investors and homebuyers.

When looking for a property in Sachsenhausen, areas like Schweizer Straße, with its array of shops, cafes, and restaurants, and Museumsufer, known for its cultural institutions, are highly desirable. These areas offer a vibrant urban experience combined with the convenience of having amenities at your doorstep.

On the contrary, areas closer to the major transportation hubs or industrial sections might not be as advisable for those seeking a peaceful residential setting.

These areas can be noisier and less appealing for those looking for a typical Sachsenhausen experience characterized by charming streets and a quieter environment.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Germany.

Area	Description	Property Types	Price Range	Atmosphere
Sachsenhausen-Nord	Close to the Main River, picturesque streets, vibrant cultural scene	Old buildings, some new developments	Higher	Lively, historical charm
Sachsenhausen-Süd	More tranquil, residential atmosphere	Apartments to standalone houses	More affordable	Tranquil, residential
Lokalbahnhof Vicinity	Undergoing development, potential for growth	Varied	Moderate, potential for appreciation	Emerging, modernizing
Schweizer Straße	Vibrant urban experience, array of shops and cafes	Varied	Varied	Vibrant, convenient
Museumsufer	Cultural institutions, urban experience	Varied	Varied	Cultural, urban

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Is there a strong rental demand in Sachsenhausen?

In Sachsenhausen, the rental market is indeed robust, driven by a variety of factors that make it an attractive area for both short-term and long-term rentals.

The nature of demand, however, varies between these two types of rentals, influenced by the district's unique characteristics and the profiles of potential tenants.

For short-term rentals, the demand is primarily fueled by Sachsenhausen's rich cultural scene and its status as a tourist and business hub. Tourists and business travelers are often drawn to this area for its proximity to Frankfurt's major attractions and business centers.

These short-term renters usually look for properties that offer convenience and easy access to the city's highlights, such as those near the Museumsufer or the vibrant Schweizer Straße.

Amenities like Wi-Fi, modern furnishings, and proximity to public transport can greatly reduce vacancy rates in these properties, as they cater to the needs of transient visitors.

On the other hand, the demand for long-term rentals largely comes from professionals, expatriates, and students. These groups are attracted to Sachsenhausen due to its blend of urban lifestyle and historical charm, coupled with the presence of international businesses and educational institutions in Frankfurt.

The target demographic for long-term rentals typically seeks apartments or smaller homes, favoring areas like Sachsenhausen-Nord for its lively atmosphere and Sachsenhausen-Süd for a more relaxed, residential feel.

Properties with amenities like a good internet connection, proximity to public transportation, and access to local services are particularly appealing to this group.

When it comes to the potential returns on investment for properties in Sachsenhausen, they can be quite promising. The area's popularity ensures a consistent demand, which can lead to a stable rental income.

Estimating specific numbers for returns on investment requires considering factors like property location, type, and the cost of maintenance and management.

However, it's reasonable to expect a competitive yield compared to other areas in Frankfurt, especially for well-maintained properties in prime locations.

In terms of property types gaining more demand and potentially offering better yields, apartments, especially those that are modern or well-renovated, are increasingly sought after. Their appeal lies in their suitability for a wide range of tenants, from young professionals to small families and expatriates.

The trend indicates a growing preference for properties that offer both convenience and quality of living, making them a smart choice for investors looking at the Sachsenhausen rental market.

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Is it easy to buy a property as foreigner in Sachsenhausen?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Germany.

Buying a property in Sachsenhausen, Frankfurt, as a foreigner is relatively straightforward, as Germany does not impose major restrictions on foreign property buyers.

However, navigating the process and understanding the local market dynamics can present some challenges.

Firstly, there are no specific regulations or restrictions targeting foreign buyers in Germany. This means that as a foreigner, you have the same rights to purchase property as German citizens.

However, the process of buying property in Sachsenhausen involves several steps that can be complex, especially for those unfamiliar with the German property market.

The purchasing process typically starts with property hunting, followed by making an offer, signing a sales agreement, and finally, the property transfer. This process involves various parties, including real estate agents, notaries, and possibly lawyers.

One of the primary risks associated with property investment in Sachsenhausen, or anywhere in Germany, is navigating the legal and financial aspects of the transaction. These can include understanding the tax implications, financing options, and the legalities of the property transfer.

A classic pitfall for foreign buyers in Germany is underestimating the importance of due diligence. This includes thoroughly checking the property's legal status, any outstanding debts on the property, and understanding the terms of the purchase agreement.

Another unique aspect is the "notarization" process, where a notary, a legally mandated figure in German property transactions, oversees the signing of the purchase agreement. This process is crucial and legally binding, so understanding its implications is vital.

Working with a local real estate agent or lawyer can be incredibly important for foreign buyers. They can provide valuable insights into the local market, help navigate the legal system, and ensure that all the necessary checks and balances are in place.

They can also assist in overcoming language barriers and ensuring that all documentation is correctly handled.

Common exit strategies for property investors in Sachsenhausen include selling the property for a profit or renting it out for a steady income stream. The rental market in Sachsenhausen is strong, which can make renting out a property an attractive option.

However, selling the property requires understanding the market trends to optimize the sale timing and price.