Housing Market Overview Germany - Big 8 | 2nd half of 2019 Published in March 2020 - JLL
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Housing Market Overview Germany Big 8 | 2nd half of 2019 Published in March 2020
Housing Market Germany
Subdued rental growth with an accelerated rate. In view of the favourable financing conditions and ris-
rise in purchase prices ing yield spreads to alternative investments, condominium
In the residential markets in the cities* surveyed by JLL in apartments in particular remain popular for both owner-
2019, rents have risen by an average of 4.1% compared to occupiers and as buy-to-let investments.
the previous year. This is below the 5-year average growth
rate for 2014-2018 (+5.0%) and below the previous year’s *Berlin, Hamburg, Munich, Cologne, Frankfurt, Düsseldorf, Stuttgart, Leipzig
result (2018: +5.1%). This subdued rental growth can be
explained by the general increase in construction activity
which is providing slight relief to the market. As a result of Population and housing supply
the rising housing cost burden, demand is shifting to sub-
Inhabitants Households Housing stock
urban areas and to structural changes in supply in general. Big 8
(2018) (2018) (2018)
At the same time, fluctuation is reducing in many central
Berlin 3,748,100 2,013,700 1,946,800
and expensive locations.
Hamburg 1,835,900 1,013,140 956,900
House prices rose significantly again in 2019, continuing
Munich 1,542,900 789,800 802,700
to set themselves apart from rental prices: with an average
Cologne 1,090,000 577,400 561,800
increase of 10.2% compared to the previous year, they ex-
Frankfurt 747,900 403,100 374,200
ceeded both the 5-year average growth rate and the previ-
Düsseldorf 642,300 335,800 356,300
ous year’s result (8.2% in each case).
Stuttgart 614,400 336,600 314,200
Despite brisk construction activity, there is still a significant
Leipzig 601,700 331,100 337,800
deficit in the supply of new homes. The gap between sup-
ply and demand continues to widen, due to the continuing Source: GfK, Einwohnermelderegister, Statistische Ämter der Kommunen, JLL;
Status: January 2020
high population influx into the cities and a strong birth
Demography and Housing Market
Source: GfK, Einwohnermelderegister,
Statistische Ämter der Kommunen, JLL;
Status: January 2020
Housing Market Overview Germany | H2 2019 2Residential Transaction Market in Germany
Momentum accelerates in the German residential expected in 2020, and these will have a corresponding im-
transaction market pact on transaction volumes. Drivers on the demand side
There was a remarkable year-end result in the German resi- include the lack of attractive alternative investments, in-
dential market in the JLL Living segment in 2019. The year- creased portfolio restructuring by institutional investors and
end transaction volume for residential properties and port- an influx of liquid capital which is desperately seeking in-
folios of around €20 billion exceeded the previous year’s vestment opportunities (“dry powder”). Conversely, adjust-
figure by 7%, and the 5- and 10-year average growth rates ments in corporate strategies such as the forthcoming ma-
by 16% and 56% respectively. This is the fourth consecutive turing of numerous funds or the trend of moving away from
year of growth. In 2019, around 130,500 apartments changed directly held residential real estate towards more indirect
hands, roughly the same number as in the previous year. investments are also increasing the numbers of sellers in
The increase in the transaction volume can therefore be at- the market. Bearing these factors in mind, a transaction
tributed exclusively to an increase in prices, with an average volume which is roughly on par with the 5-year average
price of approx. €153,300 per apartment, or €2,300 per sqm, (€18.7 billion) can be expected.
currently being paid for residential investments, around 8%
more than in the previous year.
Major portfolio restructuring exercises have taken place Residential property and portfolio transactions*
over the last six months, boosting momentum in the trans-
action market. These can be attributed both to the high
institutional demand in the market and the high degree
of legal uncertainty arising from political discussions sur-
rounding, for example, rental caps and compulsory pur-
chase. Further shifts on the buy and sell-side are also to be
Transaction volume by vendor and purchaser
* incl. forward deals and student housing
Source: JLL; Status: January 2020
Source: JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 3Housing market Berlin
Rental price cap “the” definitive topic in new construction, more conversions to condominium
Berlin’s housing market apartments and a neglect of the housing stock, especially
The decision to cap rents, combined with bureaucratic in the rental market. As a consequence, the rental price cap
obstacles and the dwindling availability of potential land, is not only contradicts the housing policy objective of creat-
stifling the willingness to invest in Berlin’s residential rental ing more residential space, but will inevitably aggravate the
market. In addition to a shift of investment activities to housing shortage still further. At 5%, Berlin, along with
other cities, the number of refurbishment and renovation Frankfurt and Leipzig, had the highest population growth
projects is currently falling. This shows that there is less rate among the Big 8 cities between 2014 and 2018 and has
already been suffering from excess demand for years. The
shortfall in new housing construction is estimated at over
Housing supply and demand for 100,000 new dwellings, despite a high construction over-
new buildings Berlin hang. While the highest construction activity is currently to
be found mainly in the city’s central locations, planned resi-
dential construction projects are increasingly located in the
northeast of the city. In the eastern districts of the city, fur-
ther large conversion sites also offer the opportunity to un-
dertake major housing projects. Nonetheless, conversions
of commercial space to residential use are falling well short
of 1990s levels. In addition to reclassification and redensifi-
cation, relief could come from a targeted development of
the potential land in the outlying districts in collaboration
with surrounding municipalities, and a gradual expansion
of infrastructure, because the outlying municipalities in
particular are already experiencing an increased influx from
the urban area due to the excess demand in
the capital.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Diverse Wohnprojekte Europacity Moabit approx. 2,800 2025
Wasserstadt Oberhavel Spandau approx. 2,500 2025
Quartier Friedenauer Höhe Friedenau approx. 1,500 2023
Mein Falkenberg Falkenberg approx. 1,250 2021
Wohnquartier Heeresverpflegungsamt Hakenfelde approx. 1,000 2021
Wohnquartier 52 Grad Nord Grünau approx. 920 2023
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Berlin 4Subdued rental growth in the middle and
lower rental price segments
Despite considerable rental price rises in recent years, the
pace of rental growth in Berlin has slowed down notice-
ably. At €12.55/sqm/month, the average rental price level in
Distribution of rental listings by price group the second half of 2019 was around 4.1% above the previ-
ous year’s figure, yet significantly below the 5-year average
growth rate of 8.0%. In particular, minimum rents (€8.35/sqm/
month) and rents for new buildings (€15.95/sqm/month)
have stagnated, while in the top (€20.00/sqm/month) and
micro living segments (residential area < 45 sqm; €15.20/
sqm/month), price increases have remained high (6.7%
and 6.5% respectively). The extent to which this trend is
also attributable to the decision to cap rents will only be-
come apparent during the course of this year. This rental
price trend is reflected across all submarkets, with parti
cularly strong rental price increases observed in both Char-
lottenburg-Wilmersdorf and Tempelhof-Schöneberg.
Source: JLL, empirica systeme; Status: January 2020
Asking rental prices Berlin Development of rental prices
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Berlin 5Asking rental prices Berlin
ì
A 10
ì
A 11
ì
A 10
ìA 111
ì
A 10
ì
A 114
ìA 10
Pankow
Reinickendorf
ìA 111
ìA 105
ì A 10
Mitte Marzahn-
Spandau
ìA 100
Friedrichshain-Kreuzberg
Hellersdorf
Charlottenburg- Lichtenberg
Wilmersdorf
ìA 104 ì A 100
ì A 115
ì
Tempelhof-Schöneberg
A 103 ì A 102
Neukölln Treptow-
Steglitz-
Zehlendorf
ìA 113
Köpenick ì
A 10
ì A 115
ì A 113
ì A 12
0 5 10 Kilometers ì
A 10
ìA 10 ì
A 13
Rent Level
Average in €/sqm/month on postcode level
< 9.50 13.50 < 15.50 Water Area Industrial or
Traffic Area
9.50 < 11.50 >= 15.50 Green Area Other Area
11.50 < 13.50
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Berlin 6Lowest purchase price segment records
the highest increases
The strong price rises in the market for condominium
apartments in Berlin are continuing, although are falling
short of the high levels of previous years. The average
Distribution of condo listings by price group purchase price for a condominium apartment is around
€4,700 per sqm, some 8.4% more than in the same period
last year (in 2018, prices rose by 12.9%). With an increase
of more than 13.4% compared to the previous year, the
strongest price rises were observed mainly in the lowest
purchase price segments. However, the rises in the top
prices and also the asking prices for new-build condomi
nium apartments, of 7.7% and 3.8% respectively, were
significantly below the 5-year average growth rates (9.6%
and 10.3% respectively). This trend is therefore an indica-
tion of a local spreading and catch-up process in the de-
velopment of purchase prices. In an analysis of submar-
kets, it is evident that the strongest price rises are being
recorded in previously relatively inexpensive suburban
locations such as Spandau and Köpenick.
Source: JLL, empirica systeme; Status: January 2020
Purchase price bands for condominiums Berlin Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Berlin 7Asking condominium prices Berlin
ì
A 10
ì
A 10
ì
A 11
ì
A 111
ìA 10
ì
A 114
ì A 10
Pankow
Reinickendorf
ìA 111
ìA 105
ì A 10
Mitte Marzahn-
Spandau Hellersdorf
ìA 100
Lichtenberg
Friedrichshain-Kreuzberg
Charlottenburg-
Wilmersdorf
ì
A 104 ì
A 100
ì A 115
ì
Tempelhof-Schöneberg
A 103 ì
A 102
Steglitz-
Neukölln
ìA 113 Treptow-
Zehlendorf Köpenick ì
A 10
ì
A 115 ì A 113
0 5 10 Kilometers ì
A 12
ì ì
A 10
ì A 10
A 13
Condominium price level
Average in €/sqm on postcode level
< 2,500 4,500 < 5,500 Water Area Industrial or
Traffic Area
2,500 < 3,500 >= 5,500 Green Area Other Area
3,500 < 4,500
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Berlin 8Housing market Düsseldorf
Unwavering high demand in the housing market 33% in the number of permits issued. Despite this, the fig-
The strong labour market and high standard of living in ures are still above the forecast demand. Moreover, the City
the city of Düsseldorf ensure dynamic population growth. of Düsseldorf has set itself the goal of completing an aver-
Since 2011, the number of inhabitants has grown by 8.7% age of 3,000 apartments per annum by 2025 to satisfy the
and, accordingly, the number of households has risen by current excess and steadily growing demand. In particular,
3.5%. However, the number of completions and building the persistently low vacancy rate of 1.4% with a continu-
permits is currently falling. Since 2017, there has been a ously expanding stock of space confirms the status of a
decline of around 27% in the volume of completions and high excess demand. Nonetheless, Düsseldorf’s space po-
tential is severely exhausted and although there are still a
few smaller areas of undeveloped land in the central dis-
Housing supply and demand for tricts, a shift towards the periphery is slowly taking place.
new buildings Düsseldorf Peripheral districts such as the Sixth District in the north-
east of the city still offer larger contiguous areas of land for
new housing developments. However, in order to increase
demand for housing in the periphery and offer affordable
accommodation there, measures must be taken to make
the surrounding area more attractive. For example, an
expansion of the infrastructure would be a major driver,
bringing relief to Düsseldorf’s housing market. Overall,
however, it remains questionable whether the City Council
will be able to intensify its connectivity with the surround-
ing area and thus achieve its goal of containing the increas-
ing prices through an expansion in supply.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Le Quartier Central Derendorf approx. 2,300 2020
Gartenstadt Reitzenstein Mörsenbroich approx. 1,050 2020
Vierzig549 Heerdt approx. 1,100 2025
le flair Pempelfort approx. 900 as of 2019
UpperNord Tower Mörsenbroich approx. 430 2022
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Düsseldorf 9Balanced rental price trends in the Düsseldorf market
Asking rents in Düsseldorf’s rental market rose by 2.7%
last year. The average rent in the second half of 2019 was
€11.55/sqm/month. This means that Düsseldorf remains
relatively cheap compared to most of the Big 8 cities, with
Distribution of rental listings by price group only Leipzig currently showing a lower rental price level.
However, rents are on a steady upward trajectory, growing
by 21% above the 5-year average. In the second half of
2019, the upper price segments in particular recorded sig
nificant price increases. The average asking rent for the
most expensive 10% of the apartments on offer grew by
6.8% to €17.20/sqm/month and that of the top 25% by 3%
to €13.85/sqm/month. At the local level, the top segment
of the central Second District increased by a considerable
13.9%. However, decreases were also observed in other
price segments over the same period. Conversely, there is
potential for further rental growth in the districts of Lohau-
sen, Stockum and Hassels.
Source: JLL, empirica systeme; Status: January 2020
Rental price bands for listed apartments Düsseldorf Development of rental prices
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Düsseldorf 10Asking rental prices Düsseldorf
ì ì A 59 ì
A 52
ì
A 57
A3
ì
A 524
ì
A 44
ì A 524
ì A 57
ì
A 52
ìA3
ì
A 535
District
5
ìA 44
ì
A 44
ì
A 52
District
ì A 44
6
ì A 57
District
ì
A 52 District
District
1
7 ì A3
4 District
2
District
District
ì A 57
3
8 ì A 46
ì A 46
ì A 46
ì A 46
ìA 59
District
9
ì A 46
ìA 57
District
10
ìA3
ìA 59
0 5 10 Kilometers
ì
A 542
Rent Level
Average in €/sqm/month on postcode level
< 10.00 12.00 < 13.00 Water Area Industrial or
Traffic Area
10.00 < 11.00 >= 13.00 Green Area Other Area
11.00 < 12.00
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Düsseldorf 11Supply shortage affects purchase prices
in peripheral locations
The shortage of supply in Düsseldorf’s housing market
resulted in a significant increase in the average purchase
price, by 13.3% compared to the previous year. With re
Distribution of condo listings by price group latively moderate rental price growth, Düsseldorf has
recorded the strongest growth in asking prices of all the
Big 8 cities. The average asking price currently stands at
€4,270 per sqm. The purchase price level in North Rhein-
Westphalia’s state capital continues to lag behind other
major German cities but is catching up steadily overall.
Significant increases over the previous half-year were ob-
served across all purchase price segments. There were
significant changes in the east and south of Düsseldorf.
For instance, prices in the top segment of the eastern Sev-
enth District grew by 19.5% and by an average of 16.3% in
the lowest price segment of the southern part of the city
(Ninth and Tenth Districts). The situation in the market is
clearly also driving up purchase prices in peripheral areas.
In addition to these locations, however, the city centre
and prime locations in the west also continue to show
rising prices.
Source: JLL, empirica systeme; Status: January 2020
Purchase price bands for condominiums Düsseldorf Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Düsseldorf 12Asking condominium prices Düsseldorf
ì A 59
ì
ì A3
A 52
ì
A 524
ì ì
A 44
A
535
ì
A 524
ì A 57
ì ì
A 52
A3
District
5
ìA 44
ì
A 44 ì ì
A 44
A 52
ì
A 44
District
6
ì A 57
District
District
ì A 52
District
1
7 ì A3
4 District
2
District
District
ì
A 57
3
8 ì
A 46
ì A 46
ì A 46
ì
ì
A3
ì
A 46
District
A 59
9
ì A 46
ì ì
A 57
District A3
10
ì
A 59
0 5 10 Kilometers
ìA 542
Condominium price level
Average in €/sqm on postcode level
< 3,000 5,000 < 6,000 Water Area Industrial or
Traffic Area
3,000 < 4,000 >= 6,000 Green Area Other Area
4,000 < 5,000
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Düsseldorf 13Housing market Frankfurt
High level of new-build activity in the most of its population growth to economic immigration.
upper price segment Due to its good accessibility and relatively moderate cost
As an important European financial metropolis and a of living compared to other top European locations,
powerful business centre, Frankfurt is characterised by Frankfurt is a particularly attractive place to live and work
dynamic population growth. Between 2014 and 2018, the for international employees and companies. In response
city’s population grew by 5.6%, or almost 40,000, second to the associated rise in demand for housing, construc-
only to Leipzig among the Big 8 cities studied by JLL. In tion activity in the urban area has intensified since 2013.
addition to a high birth surplus, Frankfurt can attribute 16,645 apartments were built in the period from 2014 to
2018, with 3,519 units built in 2018 alone. This construc-
tion boom will continue over the next few years. At 7,326,
Housing supply and demand for a record number of building permits were granted in 2018.
new buildings Frankfurt Most construction activity is concentrated in central city
locations and involves the construction of condominium
apartments in the prime segment, mainly in the form of
residential towers which are becoming the largest price
driver in the market. In order to cater not only for the
luxury segment, at the end of 2019 the City of Frankfurt
approved a building land resolution committing itself to
sustainable, socially responsible urban development; this
will ensure affordable housing for all sections of the pop-
ulation and slow down the rapid rises in land prices by
introducing a quota of 30% subsidised residential con-
struction for all residential developments.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Platensiedlung Ginnheim Ginnheim approx. 680 2022
Wohnquartier Wings Gallus approx. 630 2021
Hafenpark Quartier Ostend approx. 610 2022
Grand Tower Gallus approx. 400 2020
Wohnquartier Berghöfe Kalbach-Riedberg approx. 350 2023
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Frankfurt 14Highest rental price dynamics in central city locations
In view of the sustained high level of demand, rental price
growth continued in the second half of 2019. Compared
to the previous year, the average asking rent has risen by
3.2% to reach a new high of €15.35/sqm/month. The big-
Distribution of rental listings by price group gest price jumps are to be observed in the micro living and
high-priced residential segments. With growth of 7.4% to
an average of €20.00/sqm/month, micro apartments with
a residential area of < 45 sqm recorded the largest price in-
crease, but the top segment also enjoyed above-average
growth, rising by 5.8% to €23.70/sqm/month. Comparatively
moderate growth rates of 3.3% to €10.85/sqm/month were
recorded in the lowest price segment (cheapest 10% of the
rental apartments on offer) and asking rents for new-build
apartments rose only slightly by 0.9% to €16.15/sqm/month.
In an analysis of submarkets, the strongest rental price
growth in 2019 took place in central districts, with particu-
larly strong rent rises recorded in the Railway Station Dis-
trict, the City Centre and around the Old Town.
Source: JLL, empirica systeme; Status: January 2020
Rental price bands for listed apartments Frankfurt Development of rental prices
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Frankfurt 15Asking rental prices Frankfurt
ì A5
Nieder-
ì
A 661
Erlenbach
Nieder-Eschbach
ì A5
Kalbach-Riedberg Harhe
im
Nord-
West ìA 661 Nord-
Bergen-
Ost
ì
A5
Mitte- Enkheim
Nord
Mitte-
Ost ì A 66
West ì A 66
Innenstadt
Innenstadt III
Innenstadt
ìA 648
II
IV
Innenstadt
ì
A 66
I
West
ì
A 661
ì
A5
Süd ìA3
ì A 66 ìA3
ì
A3
ì A3
ì A5
ì A 661
0 ì5 A 67
10 Kilometers
Rent Level
Average in €/sqm/month on postcode level
< 12.00 16.00 < 18.00 Water Area Industrial or
Traffic Area
12.00 < 14.00 >= 18.00 Green Area Other Area
14.00 < 16.00
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Frankfurt 16Greatest dynamism still in the lowest
purchase price segment
The market for condominium apartments also continues
to develop dynamically, with price increases fluctuating
around the level of the 5-year average growth rate. The
Distribution of condo listings by price group average purchase price for condominium apartments was
€5,860 per sqm and therefore 9.7% higher than in the previ-
ous year. Above-average price rises were observed above
all in the lowest price segment, which recorded the highest
growth rate with an increase of 13.7% to its current level of
€3,580 per sqm. In the top segment too, purchase prices
once again grew by an average of 11.9% to €9,490 per sqm
(5-year average growth rate 8.4%). In general, purchase
prices for condominium apartments in Frankfurt’s top seg-
ment have risen by 51.4% over the past five years and are
therefore only exceeded by Berlin. Similar to the rental
market, the slowest growth was recently seen in purchase
prices for new-build apartments, which only increased by
8.2% to €6,960 per sqm in 2019. In an analysis of submar-
kets, the biggest price increases since 2017 have been ob-
served in Frankfurter Berg and around the Mertonviertel,
as well as in Niederrad and the Gutleutviertel.
Source: JLL, empirica systeme; Status: January 2020
Purchase price bands for condominiums Frankfurt Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Frankfurt 17Asking condominium prices Frankfurt
ìA5
Nieder-
ì
A 661
Erlenbach
Nieder-Eschbach
ì A5
Kalbach-Riedberg
Harheim
Nord-
West ìA 661 Nord-
Ost Bergen-
ì
A5
Mitte- Enkheim
Nord
Mitte-
Ost
ìA 66
West ìA 66
Innenstadt
Innenstadt III
Innenstadt
ìA 648
II
IV
Innenstadt
ì A 66
I
West
ì
A 661
ì
A5
Süd
ìA ì
A3
ì
A 66 ì A3 3
ì
A3
ì A3
ì A5
ì
A 661
0 5 10 Kilometers
ìA 67
Condominium price level
Average in €/sqm on postcode level
< 3,000 6,000 < 8,500 Water Area Industrial or
Traffic Area
4,000 < 5,500 >= 8,500 Green Area Other Area
5,500 < 6,000
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Frankfurt 18Housing market Hamburg
Hamburg top of the Big 8 cities in terms of the erable degree by the strong population growth of recent
building completion volume years; Hamburg’s population grew by 4.6% between 2014
Around 10,674 new apartments were completed in Ham- and 2018. Although the number of building permits has
burg in 2018, a similar number to that last recorded 40 fallen slightly since their peak at 12,465 apartments in 2017,
years ago. Hamburg has consequently recorded the most the number of approved apartments will remain high in the
housing completions per inhabitant among the Big 8 cities. future because the City Council plans to designate further
This is confirmation that the City of Hamburg is reacting to large contiguous areas of land for housing construction.
the sustained high demand for housing, driven to a consid- While the highest volume of land currently under construc-
tion is in Altona and the north of the city, and therefore
predominantly in central locations, planned residential
Housing supply and demand for projects are also increasingly to be found to the south of
new buildings Hamburg the River Elbe, on the outskirts of the city and also to the
east. A prime example of this is the creation of the new
Oberbillwerder district. Other potential areas for long-term
residential development are to be found to the south and
southeast of the city, such as in Kleiner Grasbrook and Wil-
helmsburg, and to the east between Tonndorf and Wands-
bek. In addition to intensifying the building of new housing,
the City of Hamburg is relying on other housing policy in-
struments: alongside the granting of more heritable build-
ing rights on municipal land, this includes the strict imple-
mentation of the “one-third mix” and the exercising of
municipal pre-emptive rights to prevent the sale of residen-
tial buildings to investors in neighbourhoods with “social
compliance regulations”. Moreover, the municipal housing
company SAGA GWG is playing an important role in subsi-
dised housing construction, more of which is taking place
on its own land.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Diverse Projekte im Pergolenviertel Winterhude approx. 1,400 as of 2020
Tarpenbeker Ufer Lokstedt approx. 950 2021
Wulffsche Siedlung Langenhorn approx. 700 2025
Quartier Ü30 – Ipanema Winterhude approx. 520 2021
Kolbenhöfe Ottensen approx. 420 2022
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Hamburg 19Hamburg records the lowest 5-year average
growth rate among the Big 8 cities
In the second half of 2019, asking rents in Hamburg rose by
2.8% to an average of €12.75/sqm/month compared to the
previous year, slightly below the 5-year average growth rate
Distribution of rental listings by price group of +3.0%. Apartments with a residential area of < 45 sqm re-
corded the highest rental growth of +4.4% compared to the
previous year, while new-build apartments and the lowest
rental price segment (cheapest 10% of the rental apartments
on offer) recorded significantly lower rent rises (+1.9% and
+2.2% respectively). The rent payable for new-build apart-
ments is currently around €14.55/sqm/month. In an analy-
sis of submarkets, there is a mixed picture in terms of the
development of rental prices across the city. The strongest
rent rises can be observed in the central locations. Con-
versely, the strongest future rental price growth is expected
in the districts to the northeast of the city, south of the Elbe
and on the western city limits.
Source: JLL, empirica systeme; Status: January 2020
Rental price bands for listed apartments Hamburg Development of rental prices
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Hamburg 20Asking rental prices Hamburg
ì A 21 ìA1
ì A7
ì
A 23
Wandsbek
ì A7
ì
A1
Hamburg-
Eimsbüttel
Nord
Altona
ì A 24 ìA 24
ì
A7 ì
A1
Hamburg-
Mitte
ì ì
A 252
A 26
ì A 255
Harburg ì
A1
ì
A 25
ìA 253
Bergedorf ì
ìA7
A 25
ìA 261
0 5
ì
10 Kilometers ì A1
ì
A 250
A1
ì A7
Rent Level
Average in €/sqm/month on postcode level
< 10.00 14.00 < 16.00 Water Area Industrial or
Traffic Area
10.00 < 12.00 >= 16.00 Green Area Other Area
12.00 < 14.00
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Hamburg 21Purchase prices for condominium apartments
rise significantly
Momentum in Hamburg’s market for condominium apart-
ments has increased significantly. The average purchase
price for a condominium apartment is approx. €4,900 per
Distribution of condo listings by price group sqm, a rise of more than 11% year-on-year, which means
that prices have risen considerably in excess of the 5-year
average growth rate of 5.2%. While Hamburg has shown the
lowest purchase price growth in recent years compared to
the other Big 8 cities, there are now signs that the city is
catching up. This is a trend that can be seen across all pur-
chase price segments (top segment: +10.8% to €8,000 per
sqm; bottom segment: +11.0% to €3,220 per sqm), but is
particularly evident in the purchase prices paid for new-
build apartments. At an average of around €5,650 per sqm,
new-build apartments cost around 14.4% more than in the
previous year. In an analysis of the submarkets, only price
growth can be observed, albeit with major differences in
some cases. While the strongest price rises were observed
in Altona and Hamburg-North, the lowest increase was re-
corded in Bergedorf.
Source: JLL, empirica systeme; Status: January 2020
Purchase price bands for condominiums Hamburg Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Hamburg 22Asking condominium prices Hamburg
ì ì
A 21 A1
ì
A7
ì A 23
Wandsbek
ì A7
ì
A1
Hamburg-
Eimsbüttel
Nord
Altona
ìA 24 ìA 24
ì
A7 ì
A1
Hamburg-
ì
Mitte A 255
ì
A 26
Harburg ì
A1
ì
A 25
ìA 253
Bergedorf ì
ìA7
A 25
ì A1
0 5 ì
10 KilometersA 261
ì A7
ì ì
A 250
ì A1
A1
Condominium price level
Average in €/sqm on postcode level
< 4,000 7,000 < 8,500 Water Area Industrial or
Traffic Area
4,000 < 5,500 > 8,500 Green Area Other Area
5,500 < 7,000
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Hamburg 23Housing market Cologne
Considerable dynamism in new construction activity fore the demand for housing has also risen since 2011. In
The population of Cologne has been growing continuously the past, however, too few apartments were built to keep
for years. In the last 5 years the population has grown by pace with this trend. The resulting excess demand there-
4.1%. This is due to the increased local birth rate over the fore currently represents an enormous challenge for the
past 10 years and the high influx in the 18-30 year age city. To be able to adequately meet this challenge, the City
group; the latter being attributable to the fact that Cologne of Cologne plans to complete an average of 5,000 apart-
is the third largest student city in Germany. In line with ments each year by 2025. The number of completions
these developments, the number of households and there- plummeted by 46% between 2015 and 2016; however, the
market has since recovered with around 4,000 apartments
completed in 2018. The development of building permits
Housing supply and demand for was similar. While there was a 31% decline in 2017 to 2,600
new buildings Cologne permits, the number of permits issued rose by 400 a year
later. This upward trend makes the City Council’s target
figure appear more realistic. Nevertheless, the current level
of both indicators is below the forecast future demand. It
therefore remains to be seen whether the goal can be
achieved in the future. A decisive factor in the City Council’s
efforts to successfully implement its goal is to make opti-
mum use of the already exhausted space potential. The fo-
cus is on urban redensification and the conversion of com-
mercially used space. In addition, the suitability of other
large sites in the outer districts must also be examined, as
the number of residential units in new buildings has de-
clined despite the rise in completions.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Clouth-Quartier Nippes approx. 1,200 as of 2021
Cologneo I Mülheim approx. 500 2022
Park Linné Braunsfeld approx. 500 2020
Wohnquartier Ossendorfer Gartenhöfe Ossendorf approx. 430 2021
Gewog-Physikersiedlung Porz approx. 270 2024
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Cologne 24Top segment with strong rental growth
In Cologne, average rents have continued to rise signifi-
cantly. A comparison with the previous year shows rental
price growth of 3.7% to €12.05/sqm/month in the second
half of 2019. This increase is caused by the lack of supply
Distribution of rental listings by price group and, at the same time, persistent high demand. In the top
segment, rents climbed by 9.6% to a new high of €19.40/
sqm/month. Even in the lowest rental price segment, an
increase in rents of 5.3% was observed, which is above
the 5-year average growth rate of +4.4%. Only rents for
new-build apartments have fallen since the previous year
(-3.3%), to reach €12.50/sqm/month in the second half of
2019. From a local perspective, Nippes and the city centre
experienced significant price increases, but significant
rises in asking rents can also be observed on the east
bank of the Rhein. Nonetheless, there is potential for
further rent rises, especially in the south of the city.
Source: JLL, empirica systeme; Status: January 2020
Rental price bands for listed apartments Cologne Development of rental prices
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Cologne 25Asking rental prices Cologne
ì ì
A 542 ì
A1
A3
ìA 59
ì A 57 ìA1
ì A3
Chorweiler
ì A1
ì A3
ì A1
Nippes
Mülheim
ì A 57
Ehrenfeld
ì
A4
ì
A4 Lindenthal Innenstadt
Kalk
ì
A4
ì ì
A 559
A 61
ì ì A3
ì
A4
A4
ì
A4
ì ì A 59
A1
ì A 555
ì A3
Rodenkirchen Porz
ìA 61
ì A3
ì A 555
ì A 59
0 5 10 Kilometers ìA 553
Rent Level
Average in €/sqm/month on postcode level
< 10.00 13.00 < 14.00 Water Area Industrial or
Traffic Area
10.00 < 11.50 >= 14.00 Green Area Other Area
11.50 < 13.00
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Cologne 26Purchase prices for condominium apartments
continue to rise
The growth trend is also reflected in Cologne’s market for
condominium apartments. In the second half of 2019, the
average purchase price for a condominium apartment
Distribution of condo listings by price group was €4,020 per sqm, around 12.3% higher than the price
achieved during the same period the previous year. Only
Düsseldorf achieved higher growth by comparison. In
terms of price trends, the top and bottom segments stand
out with strong growth. In the top segment, the average
purchase price rose by 7.5% to €6,290 per sqm, and in the
lowest price segment (cheapest 10% of the apartments
on offer) by 7.2% to €2,520 per sqm. The districts of Chor-
weiler and Lindental in particular contributed to these
developments. In Chorweiler, for example, there was an
increase of 23% in the top segment and 14% in the lowest
segment. Price trends in peripheral locations are leading
to an increased shift in demand for condominium apart-
ments to the periphery. Areas on the west bank of the
Rhein are also benefiting from the limited and, above all,
affordable housing supply.
Source: JLL, empirica systeme; Status: January 2020
Purchase price bands for condominiums Cologne Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Cologne 27Asking condominium prices Cologne
ì
A 542
ìA3 ì A1
ìA 59
ìA1
ì
A 57
ìA3
Chorweiler
ì A1
ì A3
ì A1
Nippes
Mülheim
Ehrenfeld ì
A 57
ì
A3
ì
A4
ì A4 Lindenthal Innenstadt ìA4
Kalk
ì A 559
ì ì A4
ì
A3
A4
ìA4
ì A1 ìA 59
ì A 555
ì A3
Rodenkirchen Porz
ì A 61
ìA 555
ì A 59 ìA3
0 5 10 Kilometers ì
A 553
Condominium price level
Average in €/sqm on postcode level
< 3,000 4,500 < 5,500 Water Area Industrial or
Traffic Area
3,000 < 3,500 >= 5,500 Green Area Other Area
3,500 < 4,500
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Cologne 28Housing market Leipzig
Dynamic increase in construction activity to other locations such as Berlin, Hamburg and Frank-
Leipzig’s population continues to grow extremely dy- furt. This increase in demand for housing has led to a
namically. Next to Frankfurt and Berlin, Leipzig has the substantial reduction in the volume of vacancies and the
highest population growth of the Big 8 cities, at +7.2% shift towards excess demand, coupled with an enormous
between 2014 and 2018. The strength of demand for reduction in refurbishment potential, is also reflected in
housing can be attributed not only to dynamic develop- price trends in the residential market. To ensure that
ment of Leipzig’s labour market, but also to the fact that there is sufficient affordable housing in the future, the
the housing cost burden is still relatively low compared City Council is focusing on new residential construction
in addition to implementing housing policy measures
such as rental price ceilings, official rental price indices
Housing supply and demand for and neighbourhood protection regulations. While an
new buildings Leipzig average of just under 940 new apartments were built
between 2013 and 2017, this figure had already risen to
around 1,930 by 2018. Moreover, at 3,545, the number of
building permits issued in 2018 was around three times
higher than in 2013. While construction activity is cur-
rently concentrated in central locations to the southeast
and southwest of the CBD (including several projects at
Lindenauer Hafen), numerous residential projects are
planned for the northeast of the city. Leipzig has vast ar-
eas of unused commercial land with the potential of
large-scale residential development. In addition to the
potential availability of sites in the city centre such as
the former railway sidings at the Eutritzscher Freilade-
bahnhof, there are large areas of land available for devel-
opment, especially in the northwest of the city. Given the
available land reserves, construction activity can be ex-
pected to remain high in the coming years.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Diverse Projekte am Lindenauer Hafen Schönau approx. 500 as of 2020
König-Albert-Residenz Möckern approx. 350 2020
FourLiving Zentrum-Südost approx. 280 2020
Wohn- und Geschäftsquartier Prager Straße Reudnitz-Thonberg approx. 180 2021
Bleichertwerke – Wohnquartier Gohlis-Mitte approx. 150 2020
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Leipzig 29Stagnation in the top segment and in new-build rents
Despite the strong rental price rises of recent years, the pace
of rental growth in Leipzig has slowed down again recently.
Asking rents rose by just 1.4% to an average of €7.25/sqm/
month in the second half of 2019 compared to the corre-
Distribution of rental listings by price group sponding period of the previous year, significantly below
the 5-year average growth rate of +6.2%. The lowest rental
price segment (cheapest 10% of the rental apartments on
offer) recorded the highest rise of 4.1% compared to the
previous year, while the new-build and prime segments re-
corded slight declines (of -2.6% and -2.0%, respectively).
Although a certain level of saturation has been reached in
the prime segment after years of strong rent rises, the catch-
up process continues in the lower price segments and pe-
ripheral locations. Locations in the northeast and northwest
recorded the most significant rental price growth. Stronger
rental growth is expected in the southeast in the future.
Source: JLL, empirica systeme; Status: January 2020
Rental price bands for listed apartments Leipzig Development of rental prices
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Leipzig 30Asking rental prices Leipzig
ì
A9
ì
A 14
ìA 14
ì
A9
Nord
ìA 14
Nordwest
Nordost
ìA 14
ì
A9 Alt-
West
Mitte Ost
ì A9
West
ìA 14
Süd Südost
ì
A 38
Südwest
ìA 38
ì
A 38 ìA 38
ìA 38
0 5 10 Kilometers
Rent Level
Average in €/sqm/month on postcode level
< 6.00 8.00 < 9.00 Water Area Industrial or
Traffic Area
6.00 < 7.00 >= 9.00 Green Area Other Area
7.00 < 8.00
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Leipzig 31Prices for owner-occupied apartments in the prime and
new-build segments weakened considerably
While momentum in the rental market in Leipzig is slowing
down, it remains strong in the market for condominium
apartments, although a slight slowdown is also being ob-
Distribution of condo listings by price group served here. The average purchase price for a condominium
apartment is €2,260 per sqm, around 8.7% higher than in
the same period last year. With an increase of more than
15.4% compared to 2018, the strongest purchase price rises
were observed mainly in the lowest purchase price seg-
ments (cheapest 10% of the apartments on offer). Con-
versely, at around +0.4% and +3.3% respectively, the growth
in purchase prices in the prime and new-build segments
was much lower (2018: +8.6% and +9.6% respectively) and
below the 5-year average growth rates (+8.9% and +9.6%).
There was a mixed picture in terms of price growth across
the city. While strong purchase price rises were recorded
in the city centre and northeast for example, prices tended
to stagnate in the northwest. High local variations in price
levels and shifts in demand continue to affect momentum
in the market for condominium apartments in the city.
Source: JLL, empirica systeme; Status: January 2020
Purchase price bands for condominiums Leipzig Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Leipzig 32Asking condominium prices Leipzig
ìA9
ì A 14
ì
A 14
ìA 14
Nord
ì A9
ìA 14
Nordwest
Nordost
ìA 14
Alt-
West
Mitte Ost
ìA9
West
ì
A 14
Süd
Südost
ì
A 38
Südwest
ìA 38
ìA 38 ìA 38
0 5 10 Kilometers
Condominium price level
Average in €/sqm on postcode level
< 1,500 2,500 < 3,500 Water Area Industrial or
Traffic Area
1,500 < 2,000 >= 3,500 Green Area Other Area
2,000 < 2,500
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Leipzig 33Housing market Munich
Continued extensive construction activities in Munich birth rates, a population growth of up to 20% is expected.
Munich’s population grew by almost 50,000 (+3.3%) bet To meet the growing excess demand in the housing mar-
ween 2014 and 2018 and even if growth is now slowing ket, increased new construction activity has been observed
down somewhat overall, the City Council expects that the for several years. 52,171 apartments were completed be-
population could continue to rise from 1.54 million in 2018 tween 2014 and 2018, and a high level of new construction
to 1.85 million by 2040. Due to the booming economy and activity is also expected in the future. A total of 12,581
economic immigration, especially of young people bet building permits were issued in 2018, almost matching the
ween 18 and 30 years of age, and simultaneously rising record number issued the previous year. The City Council
has also set itself the goal of building a further 120,000
apartments by 2030. However, the plans to increase the
Housing supply and demand for redensification proposals are controversial. Local citizens’
new buildings Munich initiatives are calling for a citizens’ petition to take action
against excessive redensification, to bring about the pres-
ervation of green and open spaces and to suspend the
planning of large new development zones. To alleviate the
shortage of living space, two new development zones are
at the planning stage on the last of the available large sites
within the city limits. A new residential district with around
1,300 apartments is envisaged for Lerchenauer Feld, a
23-hectare site in the district of Feldmoching, for which the
approval decision is expected in 2022. There is also a con-
troversial planning zone in the northeast of Munich between
Daglfing and Johanneskirchen, which has development
potential for up to 30,000 apartments on 600 hectares of
undeveloped farmland.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Diverse Projekte im Quartier Paul-Gerhardt-Allee Pasing-Obermenzing approx. 2,500 as of 2021
Stadtquartier Am Südpark Thalk.Obersendl.-Forsten-Fürstenr.-Solln approx. 1,440 2020
Alexisquartier Ramersdorf-Perlach approx. 1,350 2028
Stadtquartier DiamaltPark Allach-Untermenzing approx. 790 2021
Wohnquartier Meiller-Gärten Moosach approx. 600 2020
Stadtquartier ehemaliger Viehhof Sendling Sendling approx. 600 2022
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Munich 34Prime rent rises again
In view of the strong excess demand, rental price growth
continued in the second half of 2019, although the increase
of 3.8% year-on-year was below the 5-year average growth
rate (+5.1%) and below the previous year’s result (+4.5%).
Distribution of rental listings by price group Apartments were on offer at an average rent of €20.00/sqm/
month. Despite the top price segment recording a rental
price drop in the previous year (-2.2%), prices rose again
(by +4.9%) last year, to reach a new high of €30.00/sqm/
month. Above-average price rises were also observed in
the micro living segment (< 45 sqm residential area) and
in the case of rents for new-build apartments, which in-
creased to €26.00/sqm/month (+7.5%) and €21.15/sqm/
month (+4.8%) respectively. In contrast, the average asking
rent in the lowest price segment declined slightly. With av-
erage rental growth significantly above 20%, the greatest
price rises were achieved in sought-after locations close
to the city centre such as Ludwigsvorstadt, Maxvorstadt
around the university quarter and in Sendling.
Source: JLL, empirica systeme; Status: January 2020
Rental price bands for listed apartments Munich Development of rental prices
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Munich 35Asking rental prices Munich
ì
A9
ì
A8
ì A 92
ì A 99 ì
A 99
Feldmoching-
Hasenbergl
ìA 99 ì A9
ì A8
Allach- Schwabing- ìA 99
Untermenzing Freimann
Milbertshofen-Am
Moosach
Hart ì
A 99
Aubing-
Schwabing-West
Lochhausen-
Langwied Neuhausen- Bogenhausen
ìA 99 Nymphenburg
Maxvorstadt
Pasing-Obermenzing
LaimSchwanthalerhöhe
Altstadt-Lehel ì A 94
Ludwigsvorstadt-
Au-Haidhausen Berg
ì
A 96 ì
A 96 Isarvorstadt am
Laim
Trudering-Riem
Sendling-
ì A 96 Hadern Westpark Sendling
Obergiesing Ramersdorf-
Untergiesing-Harlaching Perlach
ì A 99
ìA 95 ìA8
ìA 995
0 5 10 Kilometers
ìA 99
Rent Level
Average in €/sqm/month on postcode level
< 18.00 22.00 < 24.00 Water Area Industrial or
Traffic Area
18.00 < 20.00 >= 24.00 Green Area Other Area
20.00 < 22.00
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Munich 36Greatest price rises in the top purchase prices
The price increase in Munich’s market for condominium
apartments also continued, with asking prices rising much
more strongly than rents on average. The average asking
price for a condominium apartment in Munich in the sec-
Distribution of condo listings by price group ond half of 2019 was €8,130 per sqm, which corresponds
to an increase of 8.5% compared to the previous year and
is slightly above the 5-year average growth rate (+7.9%).
The biggest price jump was observed in the top price
segment, whose growth of 14.6% was almost twice as high
as the 5-year average growth rate and has now reached
€12,000 per sqm. With growth of 12.5%, an above-average
increase to €8,900 per sqm was also recorded in the new-
build segment. The lowest growth, although still above the
5-year average growth rate, was achieved by the lowest
purchase price segment which increased by 10.2% to
€6,040 per sqm. The city centre districts of Maxvorstadt and
Altstadt-Lehel benefited from the strongest average price
rises in the past two years; however, significant increases
were also observed in some peripheral locations such as
Untergiesing.
Source: JLL, empirica systeme; Status: January 2020
Purchase price bands for condominiums Munich Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2020 Source: JLL, empirica systeme, IDN immodaten; Status: January 2020
Housing Market Overview Germany | H2 2019 Munich 37Asking condominium prices Munich
ì
A9
ì
A8
ì A 92
ìA 99 ì
A 99
Feldmoching-
Hasenbergl
ì
A 99 ì A9
ì A8
Allach- Schwabing- ìA 99
Untermenzing Freimann
Milbertshofen-Am
Moosach
Hart ì
A 99
Aubing-
Schwabing-West
Lochhausen-
Langwied Neuhausen- Bogenhausen
ìA 99 Nymphenburg
Maxvorstadt
Pasing-Obermenzing
LaimSchwanthalerhöhe
Altstadt-Lehel ì A 94
Ludwigsvorstadt-
Au-Haidhausen Berg
ì
A 96 ì
A 96 Isarvorstadt am
Laim
Trudering-Riem
Sendling-
ìA 96 Hadern Westpark Sendling
Obergiesing Ramersdorf-
Untergiesing-Harlaching Perlach
ì A 99
ìA 95 ìA8
ìA 995
0 5 10 Kilometers
ìA 99
Condominium price level
Average in €/sqm on postcode level
< 7,000 9,000 < 10,000 Water Area Industrial or
Traffic Area
7,000 < 8,000 >= 10,000 Green Area Other Area
8,000 < 9,000
Source: JLL, empirica systeme, IDN Immodaten GmbH, Infas Geodaten GmbH
Housing Market Overview Germany | H2 2019 Munich 38Housing market Stuttgart
Stuttgart records the lowest number of completions expects their annual target of 1,800 new homes to be
per inhabitant among the Big 8 cities reached over the next ten years, but given the current con-
Despite significant rises in the volume of completions in struction deficit and the fact that Stuttgart has the lowest
previous years, 13% fewer new apartments (approx. 1,850) number of housing completions per inhabitant among the
were built between 2017 and 2018, and although there was Big 8 cities, it is questionable whether the City Council’s tar-
a slight increase in the number of building permits issued get figure is actually sufficient to meet existing and future
to around 2,100, initial indicators would suggest that this housing needs. After all, Stuttgart will remain an important
number has fallen again. However, the City of Stuttgart still business location with supra-regional appeal, despite the
comparatively low population growth of just 2,700 in 2018.
Criticism of the municipal housing policy has therefore
Housing supply and demand for become louder. Nevertheless, the capacity bottlenecks in
new buildings Stuttgart building land, for geographical reasons amongst others,
limit new large-scale residential development. Larger, con-
tiguous development sites are a rarity in Stuttgart. However,
given the current excess demand, only such large-scale new
residential development projects could bring significant
relief to the market. This could be achieved, for example,
through the targeted development of potential land in the
peripheral districts which would require collaboration with
the respective municipalities and a successive expansion of
the infrastructure, and the further intensification of conver-
sions of commercial sites to residential use. Current conver-
sion projects include the Quartier am Wiener Platz and vari-
ous projects at the former Cannstatt freight station. Further
potential land can also be found in the north of the city.
Source: destatis, BBSR Wohnungsmarktprognose, JLL; Status: January 2020
Selected developments under constructions
Name Location Residential units Completion date
Wohnquartier Giebel Giebel approx. 340 2023
Wohnquartier Theaterviertel Feuerbach approx. 250 2022
Wohnquartier Olga-Areal West approx. 220 2020
Wohnen am Höhenpark Killesberg Feuerbach approx. 200 2020
Diverse Projekte im Hansa-Areal Möhringen approx. 400 as of 2020
Source: Thomas Daily, JLL; Status: January 2020
Housing Market Overview Germany | H2 2019 Stuttgart 39You can also read
