– Up to EUR 18,000 per square metre for freehold apartments in prime locations
– Approx. 15 percent rise in prices for detached and semi-detached houses in surrounding regions
As an international centre of business and finance, and a European transport hub, Frankfurt has been attracting large numbers of working professionals and foreign clients for many years. “The rising population and the resulting demand for living space in Frankfurt are leading, among other things, to a dynamic development of property prices. Besides premium central locations in the city, properties in the surrounding regions are also increasingly attracting the attention of buyers. Such homes offer attractive investment opportunities, as the price potential has not yet been exhausted here,” says David Schmitt, Managing Director of Engel & Völkers Frankfurt.
The average asking price for freehold apartments in Frankfurt in Q4 2021 was EUR 6,689 per square metre, which marks a 6.6 percent rise over the same quarter last year. Prices on the market for detached and semi-detached houses also saw an increase. During the same period, properties were listed for an average of EUR 890,000, which corresponds to an 11.9 percent rise over the same quarter in the previous year.
Apartments: Westend district among the most exclusive residential addresses:
Frankfurt can lay claim to the third-highest prices for freehold apartments, after Munich and Hamburg. The Westend, Diplomatenviertel and Holzhausenviertel districts rank among the best locations in the city. The average asking price in 2021 in Westend-Süd, for example, was EUR 9,984 per square metre, while freehold apartments in Westend-Nord fetched average asking prices of EUR 9,065 per square metre. Top prices per square metre of up to EUR 18,000 are currently being paid for luxury apartments in Frankfurt’s most sought-after districts. The highest price rises in the freehold apartment segment compared to 2020 were in the neighbourhoods of Frankfurter Berg (+40.8 percent), Sindlingen (+28.8 percent), Praunheim (+27.5 percent) and Sachsenhausen-Nord (+20.6 percent).
Due to considerably higher construction costs, prices for new developments are currently rising much faster than for existing apartments. Buyers paid an average of EUR 9,427 per square metre for newly built apartments in Q4 2021. This marks a 15.7 percent growth over the previous year.
Houses: Prices for detached and semi-detached houses continue to rise:
In very good locations such as Westend, parts of Dornbusch and Sachsenhausen Nord, and the Diplomatenviertel, detached and semi-detached houses commanded asking prices of between EUR 1.9 million and EUR 5.5 million in 2021. Frankfurt’s good locations are directly adjacent to the aforementioned districts above. These include Eschersheim, large swathes of Sachsenhausen, Nordend-Ost, and parts of Nordend-West and Lerchesberg. In the same period, the average asking price in these districts ranged between EUR 900,000 and EUR 2.8 million. Bockenheim, which encompasses the particularly exclusive Diplomatenviertel quarter, was the most expensive district in this segment, with average asking prices of EUR 3.3 million, followed by Sachsenhausen-Süd at EUR 2.8 million.
Outlook: Increased demand for residential property in surrounding regions:
Over recent years, Frankfurt has once again asserted itself as a robust real estate market, with demand remaining high both nationally and internationally. In addition to sought-after locations in the city centre, the outskirts of Frankfurt and the surrounding regions are benefiting more and more from the strong demand. Here, for example, the average price per square metre for freehold apartments in Q4 2021 was approx. EUR 3,800, which is a 9.6 percent rise over the previous year. In the same period, there was an approx. 15 percent increase in the segment for detached and semi-detached houses. Properties in regions surrounding Frankfurt and Offenbach were listed for EUR 600,000 on average. The highest average prices in the surrounding region were fetched in the county known as the Hochtaunuskreis, with its towns of Königstein, Oberursel and Bad Homburg. The average asking price for detached and semi-detached houses in the Hochtaunuskreis region was EUR 849,000.
“There are currently no signs of a reversal in the trend of continuously rising property prices in Frankfurt. Due to the high demand and limited supply, in a climate with unwaveringly low interest rates, moderate price hikes are to be expected,” says David Schmitt in summary.
