Real Estate market in Düsseldorf

 Thanks to its excellent geographic location, strong economy as well as high living standards, Düsseldorf has attracted more and more people to live and work here. 
Because of such an influx of residents/population and continuous inflow of Foreign Direct Investment, the real estate market of Düsseldorf has been developing significantly, making it an attractive real estate investment destination.

Düsseldorf's Real Estate Market

1. Organic population growth

The number of local residents has increased by 4% from 2014 until now. As estimated by the local Düsseldorf government, by 2035, there will be around 700,000 residents living in Düsseldorf, indicating a healthy and robust population growth of 8% . Therefore, there is a foreseeable strong demand for real estate in both the owner and rental market.

2. Strong housing price and rental price development 

Many would have estimated that the housing prices in Düsseldorf during the pandemic phase in 2021-2022 would have dropped due to the high uncertainty in this time. In reality, this is far from the truth. In reality, the real estate prices in Düsseldorf have experienced quite an astonishing 19% increase since 2021, the biggest increase among all the major German cities !

As indicated  in the chart below, the purchasing price for apartments has increased by 280% from 1,652 Euro/ m² in 2007 to 4,662 Euro/ m² in 2022.  Meanwhile,  rental prices have also increased steadily along with this trend, from an average of 7.44 Euro/ in 2007 to 10.42 Euro/ in 2018.  Even recently, because of  high interest rates , more real estate buyers who now cannot afford to buy an apartment have joined the rental market, thus pushing the rental price to an ever higher rate of 10.9 Euro/ .

The data and the trend speak for itself. We believe the trend will continue organically. To sum up the situation/or findings, here are 6 reasons why you should invest in real estate in Düsseldorf now:

Balanced industry allocation and strong German and international corporations presence

  • Strong inward Foreign Direct Investment
  • Yearly residents and expats influx
  • High standards of living, education and healthcare
  • Relatively lower housing price as compared to Munich, Frankfurt or Hamburg
  • A great investment opportunity given the tight local rental market

3. Purchase price trend and Rental price trend


 


References:
1. Bevölkerungsprognose 2035, düsseldorf.de,  https://www.duesseldorf.de/aktuelles/news/detailansicht/newsdetail/bevoelkerungsprognose-2035-1.html
2. Ganz einfach unbezahlbarÜberblick auf Kaufpreise: Immobilien in NRW-Metropole teuer wie nie, EXPRESS, https://www.express.de/nrw/duesseldorf-immobilienpreise-steigen-um-19-prozent-93476?cb=1668608814052
3. Wohnungen wird in Düsseldorf noch einmal deutlich teurer, Westdeutsche Zeitung, https://www.wz.de/nrw/duesseldorf/wohnen-wird-in-duesseldorf-noch-einmal-deutlich-teurer_aid-37013989
4. Immoscout 24, https://atlas.immobilienscout24.de/orte/deutschland/nordrhein-westfalen/düsseldorf#/