Housing Market Overview Germany - Big 8 | 1st half of 2019 Published in August 2019 - JLL
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Housing Market Overview Germany Big 8 | 1st half of 2019 Published in August 2019
Housing Market Germany
Housing policy increases uncertainty in the which could lead to capital being withdrawn from the
residential property market rental housing market and transferred to other real
Asking rental prices in the eight cities* surveyed by JLL estate segments, and consequently to a decline in new
increased by an average of around 2.3% between the construction activity.
first half of 2018 and the corresponding period in 2019, *Berlin, Hamburg, Munich, Cologne, Frankfurt, Düsseldorf, Stuttgart, Leipzig
indicating a loss of momentum in rental price growth.
This slowdown can be attributed to the fact that wage
growth has not kept pace with rents in recent years, Population and housing supply
causing the housing cost burden to spiral upwards,
Inhabitants* Households* Housing stock
especially in the major conurbations, and a shift in de- Big 8
(2018) (2018) (2018)
mand towards the city centre fringe and suburban loca-
Berlin 3,748,100 2,013,700 1,946,800
tions. With house prices rising at an average of 6.7%, the
Hamburg 1,835,900 1,013,140 956,900
growth in purchase prices has become further decoup-
Munich 1,542,900 789,800 802,700
led from the growth in rents over the past 12 months.
Cologne 1,090,000 577,400 561,800
Nonetheless, comparing this to the 5-year average
Frankfurt 747,900 403,100 374,200
(8.3%), purchase price growth has also lost some of its
Düsseldorf 642,300 335,800 356,300
momentum. In view of the sustained deficits and shortage
Stuttgart 614,400 336,600 314,200
of space, there is still no relief in sight for new residential
Leipzig 601,700 331,100 337,800
construction. Moreover, discussions regarding housing
policy interventions in the housing market are causing *Estimation
Source: GfK, Residents’ registration offices, Municipal statistical offices, JLL;
increasing uncertainty among investors and developers Status: July 2019
Demography and Housing Market
Source: GfK, Residents’ registration offices,
Municipal statistical offices, JLL;
Status: July 2019
Housing
HousingMarket
MarketOverview
OverviewGermany
Germany | | H1
H12019
2019 22Residential Transaction Market in Germany
German residential investment market commitments by investing in special funds (+€1.2 billion)
in choppy waters and pension funds (+€380 million). Listed property compa-
In the first half of 2019, the JLL Living segment in the Ger- nies which traditionally acquire larger lot sizes were only
man residential property market faced the challenge of re- the fourth-largest purchaser group with an asset accumula-
conciling the difficult political environment with the conti- tion of less than €600 million. While these companies are
nuing high level of investor interest and shortage of supply. struggling due to the lack of supply, increasingly they are
This has become increasingly difficult and as a result, there feeling the headwind of the political players. In turn, this is
has been a decline of around 25% compared to the corres- benefitting public and municipal housing companies which
ponding period last year. In the period from January to represent the third-largest net purchaser group, with al-
July, 58,800 apartments changed hands at a total volume most €760 million in asset accumulation.
of €8.1 billion. This decline is mainly due to the current The outlook for the year as a whole is largely determined
scarcity of portfolios available on the market. Despite the by the strongly regulated housing market agenda. Given
“mega-sale” to the ZBI Group of the 16,800 apartments in the continuing decline in the supply of space, it is highly
the BGP Portfolio, the total number of transactions was unlikely that the transaction volume will exceed €16.5 bil-
17% lower year-on-year. Small and medium-sized transac- lion in 2019.
tions of between €20 million and €100 million were particu-
larly dominant, accounting for 40% of the total transaction
volume. Thanks to the BGP deal, the largest net investors in
the first six months of 2019 were open-ended mutual funds Residential property and portfolio transactions
with a net asset accumulation of around €2 billion. Insu-
rance companies and pension funds also expanded their
Transaction volume by vendor and purchaser
Source: JLL; Status: July 2019
Source: JLL; Status: July 2019
Housing
HousingMarket
MarketOverview
OverviewGermany
Germany | | H1
H12019
2019 33Housing market Berlin
Possible increase in living space through systematic loping labour market. Although the number of completions
absorption of potential space in 2018 (14,500 new apartments) was once again signifi-
Berlin’s population continues to grow extremely dynami- cantly higher than in the previous year, it continued to fall
cally. After Frankfurt and Leipzig, Berlin experienced the short of the target of 20,000 new apartments per annum.
highest population growth of the Big 8 between 2014 and No noticeable relief to the tension in the market is likely
2018 (5.2%), driven by a high level of international inward over the coming years. While the number of building per-
migration. The city’s attractiveness can be attributed not mits granted in 2018 (around 21,000) shows a slight decline
only to its internationality, but also to a dynamically deve- compared to previous years, the increasing regulations and
drastic interventions of municipal housing policies, such
as the introduction of the rental cap and discussions about
Housing supply and demand for the expropriation of large portfolio holders, is causing in-
new buildings Berlin creasing uneasiness among investors and project develo-
pers. This, combined with bureaucratic obstacles, the in-
creasing scarcity of development land and the shortage of
personnel in the construction industry, is already encoura-
ging many project developers to shift their focus to the less
regulated market for commercial real estate. Considering
the substantial excess demand for housing, large, conti-
guous new residential buildings would bring significant
relief, for example through the targeted development of
sites in peripheral districts with the involvement of the
local communities and the successive expansion of infra-
structure. Efficiency in the re-densification of potential
space in the city centre could also be improved by compi-
ling a city-wide construction site register. Even the number
of conversions of commercial space to residential use re-
mains well below 1990 levels.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Diverse Wohnprojekte Europacity Moabit approx. 2,800 2025
Wasserstadt Oberhavel Karlshorst approx. 2,500 2025
Quartier Friedenauer Höhe Friedenau approx. 1,500 2023
Mein Falkenberg Falkenberg approx. 1,240 2021
Wohnquartier Heeresverpflegungsamt Hakenfelde approx. 1,000 2021
Stadtquartier Tacheles-Areal Mitte approx. 450 2020
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Berlin 4High-priced rental housing market with the
strongest growth rates of the Big 8
Berlin observed a rise in asking rents of 4.7% between the
first half of 2018 and corresponding period in 2019, to reach
€12.20/sqm/month. Although rental price growth has wea-
Distribution of rental listings by price group kened considerably compared to the previous year, the
highest annual rental price growth among the Big 8 was
observed in Germany’s capital. Contrary to the trend ob
served in other major cities, prices in the prime segment
(€19.30/sqm/month) also rose sharply by around 7% year-
on-year, while in the lowest rental price category the price
increase (5.6%) was somewhat lower, and even stagnated
in the new-build segment (€14.50/sqm/month). Due to
the persistently high demand pressure, apartments in theAsking rental prices Berlin
ì
A 10
ì
A 10
ì
A 11
ì
A 111
ì
A 10
ìA 114
Pankow
Reinickendorf
ìA 111
ìA 105
ì A 10
Mitte Lichtenberg
Marzahn-
Hellersdorf
Spandau ìA 100
Charlottenburg- Friedrichshain-
Wilmersdorf Kreuzberg
ìA 104 ì
A 100
ì
A 115
Steglitz-
ì A 103 Tempelhof-
Schöneberg Neukölln
Zehlendorf
ìA 113 Treptow-
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
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
Residential City Profile | H1 2019 Berlin 6Affordable suburban locations see the
highest purchase price rises
Asking prices for condominium apartments have continued
to rise and at €4,440 per sqm, are around 5.7% higher year-
on-year. Although purchase price growth has weakened
Distribution of condo listings by price group slightly recently, with a 5-year average of 9.9%, Berlin has
one of the strongest markets for condominium apartments
in the Big 8 and is outperformed only by Leipzig. In particu-
lar, the lowest purchase price category (+13.3% per annum)
recorded strong growth last year, while prices in the prime
(+1.7%) and new-build segments (+3.5%) lagged signifi-
cantly behind the average price growth rate. An average
purchase price of around €7,020 per sqm was recorded in
the most expensive purchase price category in the first half
of 2019 and this trend is particularly evident in an analysis
of purchase prices across the city. While slight declines
were observed predominantly on the fringes of the city
centre, increases were mostly to be found in previously
relatively inexpensive peripheral districts to the east
(Pankow, Hohenschönhausen and Marzahn), northwest
(Tegel) and southeast (Adlershof).
Source: JLL, empirica systeme; Status: July 2019
Purchase price bands for condominiums Berlin Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Berlin 7Asking condominium prices Berlin
ì
A 10
ì
A 10
ì
A 11
ì
A 111
ì
A 10
ìA 114
Pankow
Reinickendorf
ìA 111
ìA 105
ì A 10
Mitte Lichtenberg
Marzahn-
Hellersdorf
Spandau ìA 100
Charlottenburg- Friedrichshain-
Wilmersdorf Kreuzberg
ìA 104 ì
A 100
ì
A 115
Steglitz-
ì A 103 Tempelhof-
Schöneberg Neukölln
Zehlendorf
ìA 113 Treptow-
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
Residential City Profile | H1 2019 Berlin 8Housing market Düsseldorf
Rise in the number of building permits compared to other locations such as Frankfurt, Stuttgart
In Düsseldorf, the number of completed apartments in and Munich. Nonetheless, the number of building permits
2018 was roughly on a par with the previous year at around granted has fallen by almost 20% year-on-year to around
2,050; however, the sustained rise in demand for housing 2,500 over the past 12 months, so the completion target of
continued in 2018. The strength of demand for housing can 3,000 new apartments per annum set by the City Council
be attributed not only to Düsseldorf’s role as the state capi- will not be achieved in the future and the deficit in new
tal and an important media and business location, but also housing construction will persist. As one of the population
to the fact that the housing cost burden is still relatively low focal points in the Rhein-Ruhr metropolitan region, Düssel-
dorf and its neighbouring municipalities have little signifi-
cant space potential left. As a reaction to the existing shor-
Housing supply and demand for tage of living space, increasingly alternative living concepts
new buildings Düsseldorf such as micro living are being introduced, especially in the
central districts of the city. This is because demographically
induced singularisation and the fact that work-related im-
migration is primarily characterised by smaller household
sizes are leading to a steady rise in the number of single-
person households and therefore demand for smaller
apartments. Nevertheless, the housing cost burden has
also risen significantly in recent years, even in Düsseldorf.
This has been recognised by the City of Düsseldorf’s
housing policies and some years ago it introduced its
“Zukunft Wohnen. Düsseldorf” action concept which com-
prised various funding programmes. However, the rising
demand can only be met if, in addition to previous housing
construction programmes, the attractiveness of the peri-
phery as a residential location is increased, for example
through infrastructure improvements in order to strengthen
links between the city’s labour market and the surrounding
municipalities, thereby enlarging the catchment area.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Le Quartier Central Derendorf approx. 1,500 2020
Gartenstadt Reitzenstein Mörsenbroich approx. 1,050 2020
Vierzig549 Heerdt approx. 1,000 2025
le flair Pempelfort approx. 900 2019
win win Wohnen im Medienhafen Hafen approx. 410 2021
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Düsseldorf 9Decline in the city centre and western suburbs
Asking rents in Düsseldorf rose by just 1.3% to an average
of €11.30/sqm/month between the first half of 2018 and the
corresponding period in 2019, significantly below the
5-year average of 3.5%. The highest rental price rise of 4.7%
Distribution of rental listings by price group was recorded by the lowest rental price category, while the
new-build and the prime segments recorded significant de-
clines (of -1.5% and -5.3%, respectively); in the first half of
2019, the rental price level in the prime segment was
around €16.10/sqm/month. In an analysis of submarkets,
there is a mixed picture in terms of the development of
rental prices across the city. For example, rental price levels
have declined across the city, especially in the city centre
and suburban locations to the west, while rental growth is
still being observed on the southern periphery and in the
wider surroundings of the university.
Source: JLL, empirica systeme; Status: July 2019
Rental price bands for listed apartments Düsseldorf Development of rental prices
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Düsseldorf 10Asking rental prices Düsseldorf
ì A 59
ì
ì A3
A 52
ìA 524
ì
A 44
ì
A 524
ì A 57
ì ì
A 52
A3
District 5
ìA 44
ì
A 44
ì
A 52 ìA 44
District 6
ì A 57
District 7
ì A 52
District 4 District 1
ì A3
District 2
District 3 District 8
ì
A 57
ìA 46
ì A 46
ì A 46 District 9
ì
A 59
ì A 46
ì
A 57
ì
A3
District 10
ì A 59
0 5 10 Kilometers
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
Residential City Profile | H1 2019 Düsseldorf 11Exponential increase in purchase prices
due to the shortage of supply
Purchase price growth of 7.9% in the market for condomi-
nium apartments is above the 5-year average of 6.7% and
suggests strong momentum. A phenomenon that is cur-
Distribution of condo listings by price group rently characteristic of many German metropolitan regions
is particularly evident in Düsseldorf, i.e. because of the low
elasticity of supply, the scarcity of supply in the markets
with decreasing vacancy rates does not have a linear but an
exponential effect on prices. The average asking price for a
condominium apartment here is €3,950 per sqm. While a
1.4% rise was observed in purchase prices in the prime seg-
ment, they rose by a staggering 16% in the lowest purchase
price category. Purchase price growth in the new-build seg-
ment has slowed down slightly since the strong price rises
last year. At €5,990 per sqm, the average purchase price for
a new-build apartment increased by 4.5% between the first
half of 2018 and the corresponding period in 2019. The
strongest growth within the city was observed on the
southwest periphery, in Rath and along the axis between
Toulouser Allee to the S-Bahn urban railway station in
Oberbilk.
Source: JLL, empirica systeme; Status: July 2019
Purchase price bands for condominiums Düsseldorf Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Düsseldorf 12Asking condominium prices Düsseldorf
ì A 59
ì
ì A3
A 52
ìA 524
ì
A 44
ì
A 524
ì A 57
ì ì
A 52
A3
District 5
ìA 44
ì
A 44
ì
A 52 ìA 44
District 6
ì A 57
District 7
ì A 52
District 4 District 1
ì A3
District 2
District 3 District 8
ì
A 57
ìA 46
ì A 46
ì A 46 District 9
ì
A 59
ì A 46
ì
A 57
ì
A3
District 10
ì A 59
0 5 10 Kilometers
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
Residential City Profile | H1 2019 Düsseldorf 13Housing market Frankfurt
Frankfurt improves its management of positive growth. The location is considered attractive to
potential construction sites both international employees and employers because
Frankfurt’s population continues to grow strongly. In 2018, Frankfurt not only boasts good accessibility compared to
the City of Frankfurt recorded an increase of around 6,750 other top European locations, but also scores well in terms
people and therefore the city looks set to break through the of the affordability of living space. In the face of the growing
750,000 threshold this year. The main reason for this is that demand for housing, it was possible to significantly increa-
as an important European financial centre and business se the supply of housing in 2018. With a record-breaking
location, Frankfurt’s labour market is showing extremely construction volume of €550 million and around 3,500 new
homes, residential construction was at its second-highest
level of the past forty years. Remarkably, it was achieved
Housing supply and demand for without the creation of any major new development zones.
new buildings Frankfurt A sustained boom in residential construction is also to be
expected in the future, with building permits granted for al-
most 7,330 apartments in 2018, a level last achieved in the
early 1960s. Historic high rates were also achieved in the
conversion of office and commercial space. As occupatio-
nal immigration is mainly characterised by international
and often smaller households, demand for micro-housing
concepts and high-priced housing remains high. Conse-
quently, micro-apartments continue to account for a high
proportion of building permits. Other new development
zones are also planned, including the tunnelling of, and
development above and around the A661 motorway in the
northeast of the city, which could create some 5,000 new
homes. Nonetheless, the Frankfurt housing market remains
tense and the affordability of housing remains a widely dis-
cussed topic in the public arena, further fuelled by a Frank-
furt Citizens’ Petition and by the Lord Mayor’s call for a ren-
tal cap, for example.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Quartier am Henninger Turm Sachsenhausen approx. 1,000 2019
Platensiedlung Ginnheim Ginnheim approx. 650 2022
Wohnquartier Wings Gallus approx. 630 2021
Hafenpark Quartier Ostend approx. 600 2022
Wohnquartier Mainwald Schwanheim approx. 400 2020
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Frankfurt 14High rental growth in Ostend and in the
northern development zones
Average asking rents in Frankfurt have risen by around 3.4%
to €15.05/sqm/month compared to the same period last
year. With a price increase of just under 6.8%, the lowest
Distribution of rental listings by price group rental price category recorded significantly stronger growth
than the prime segment (3.2%), which averaged around
€22.55/sqm/month in the first half of 2019. TheAsking rental prices Frankfurt
ì A5
Nieder-
ìA 661 Erlenbach
Nieder-
Eschbach
Kalbach-
Riedberg Harheim
Nord-
West
ì A 661 Nord-Ost
Bergen-
ì
A5
Mitte- Ost
Enkheim
Nord
Mitte- ìA 66
West ìA 66
Innenstadt
Innenstadt II III
ìA 648 Innenstadt IV
ì A 66 Innenstadt I
West
ì
A 661
ì A5
Süd ì
A3
ì A3
ì
A3
ìA3
ì ì
A5
A 661
0 5 10 Kilometers
ìA 67
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
Residential City Profile | H1 2019 Frankfurt 16Lowest purchase price segment records
the highest increases
Momentum in the market for condominium apartments in
Frankfurt is sustained. On average, condominium apart-
ments cost around €5,620 per sqm to buy, which is around
Distribution of condo listings by price group 6.8% more than in the same period last year. With an incre-
ase of more than 9.7% compared to the previous year, the
strongest price rises were observed mainly in the lowest
purchase price categories. Asking prices for new-build
condominium apartments have also risen substantially
by around 14% while the development of prime purchase
prices has lost momentum. On average, prime purchase
prices in the first half of 2019 were around €8,620 per
sqm and therefore 1.4% above the previous year’s level.
An analysis of the development of purchase prices in the
various submarkets reveals that strong increases can be
observed especially in Sossenheim, the western city centre
and in areas around the ECB. Conversely, slight declines
can be found in some areas on the periphery of the city.
Thus, in the city itself, there is a mixed picture in terms of
the development of purchase prices across the submarkets.
Source: JLL, empirica systeme; Status: July 2019
Purchase price bands for condominiums Frankfurt Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Frankfurt 17Asking condominium prices Frankfurt
ì A5
Nieder-
ìA 661 Erlenbach
Nieder-
Eschbach
Kalbach-
Riedberg Harheim
Nord-
West
ì A 661 Nord-Ost
Bergen-
ì
A5
Mitte- Ost
Enkheim
Nord
Mitte- ìA 66
West ìA 66
Innenstadt
Innenstadt II III
ìA 648 Innenstadt IV
ì A 66 Innenstadt I
West
ì
A 661
ì A5
Süd ì
A3
ì A3
ì
A3
ìA3
ì ì
A5
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
Residential City Profile | H1 2019 Frankfurt 18Housing market Hamburg
With over 10,000 new apartments, the volume of to a considerable degree by the strong population growth
completions in Hamburg reached a 40-year high of recent years. Last year alone, the city’s population grew
With 10,674 new apartments, Hamburg was able to break by a further 10,000. At 11,087, the number of building per-
through the 10,000 mark in new residential completions in mits granted is down slightly from the peak registered last
2018, building around 35% more apartments than in the year; however, thanks to the City of Hamburg’s plans to
previous year. This is the highest volume of completions significantly expand the housing supply with large areas of
registered in Hamburg for the past 40 years and is the city’s contiguous space, a high level of new construction activity
reaction to the continuing high demand for housing, driven can be expected over the coming years. Projects worthy of
mention include the creation of the new Oberbillwerder
district for mainly multi-storey residential construction and
Housing supply and demand for a potential for around 7,000 new apartments. Other plans
new buildings Hamburg include “Science City Bahrenfeld” in the Altona district
which will offer the potential of further 2,500 new apart-
ments. There is former commercial/industrial land in the
northeast of the city and in Wilhelmsburg that could poten-
tially be used for long-term redevelopment and conversion
to residential use. In addition to new residential construc-
tion, the City of Hamburg is relying on other housing policy
instruments, chiefly to ensure the provision of affordable
living space. Such instruments include the consistent im-
plementation of the “third mix” and an increasing use of its
pre-emptive purchase rights. Despite the City Council’s
housing policy efforts to-date, the housing market remains
tense and calls for even more drastic measures such as a
rental cap are becoming increasingly louder.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Diverse Projekte als Teil des Quartier Vogelkamp-Neugraben Neugraben-Fischbek approx. 1,500 2019
Diverse Projekte im Pergolenviertel Winterhude approx. 1,400 2020
Tarpenbeker Ufer Lokstedt approx. 950 2021
Wulffsche Siedlung Langenhorn approx. 700 2025
Wohnquartier Am Weißenberg Alsterdorf approx. 500 2019
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Hamburg 19Districts south of the Elbe show the
strongest rental price growth
After a brief lull in the second half of 2018, the general ren-
tal price level rose again in the first six months of 2019, with
asking rents reaching a new high of €12.65/sqm/month.
Distribution of rental listings by price group The prime segment showed even stronger rental growth of
5.4% (€18.65/sqm/month) compared to the previous year
and at 4.0%, the price rise in the lowest rental price catego-
ry was only marginally lower, while growth in the new-build
rental segment was extremely moderate at around 1%. As
a reaction to the significant rise in the rental cost burden
and resulting downward pressure on average rental price
growth, theAsking rental prices Hamburg
ì ì
A 21 A1
ì A7
ìA 23
Wandsbek
ì A7
ì
A1
Eimsbüttel
ì
A 23
Hamburg-
Nord
Altona
ì
A 24 ìA 24
ìA7 ì
A1
Hamburg-
Mitte
ì A 255
ì
A 26 Harburg
ì A1
ì
A 25
ìA 253
ì
ì A7 Bergedorf
A 25
0 5 10 Kilometers
ì
A 261
ì ì
A 250
ì A1
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
Residential City Profile | H1 2019 Hamburg 21Greatest price rises observed in the prime
and new-build segments
Purchase prices are continuing to rise at a significantly hig-
her rate than rental prices. The average purchase price has
risen by 5.7% to €4,640 per sqm over the past 12 months,
Distribution of condo listings by price group slightly exceeding the 5-year average (5.4%). In the market
for condominium apartments, the prime and new-build
segments have developed particularly well, with both of
these segments recording above-average purchase price
growth of 8.5%. With an average price level in the prime
segment of €7,690 per sqm, Hamburg was only just beaten
into third place by Frankfurt and Munich. In an analysis of
submarkets, locations around the city centre are currently
observing the strongest price increases with significant ri-
ses recorded between the city centre and Altona, and on
the western periphery (Osdorf and Lurup). Spatial adjust-
ment processes and price level increases alternate over
time and are the result of the interplay between price
trends and shifts in demand between local submarkets.
Source: JLL, empirica systeme; Status: July 2019
Purchase price bands for condominiums Hamburg Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Hamburg 22Asking condominium prices Hamburg
ì ì
A 21 A1
ì A7
ìA 23
Wandsbek
ì A7
ì
A1
Eimsbüttel
ì
A 23
Hamburg-
Nord
Altona
ì
A 24 ìA 24
ìA7 ì
A1
Hamburg-
Mitte
ì A 255
ì
A 26 Harburg
ì A1
ì
A 25
ìA 253
ì
ì A7 Bergedorf
A 25
0 5 10 Kilometers
ì
A 261
ì ì
A 250
ì A1
A1
ì
A7
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
Residential City Profile | H1 2019 Hamburg 23Housing market Cologne
New-build apartments continue to achieve top prices therefore in very central locations in the city. Thanks to an
There was a significant rise in the volume of new residential increase in the number of building permits granted, it was
completions in 2018 following years of decline. Around also possible to increase the construction surplus once
4,000 new apartments were added to the market, the se- again, ensuring that a higher level of completions can be
cond-best result of the last 18 years and an increase of 84% expected over the coming years. The City of Cologne issued
compared to the corresponding period last year. Most new building permits for around 3,000 apartments in 2018, a
apartments are to be found in the districts of Ehrenfeld 17% increase compared to the previous year (+440 apart-
(880 apartments) and the city centre (590 apartments) and ments). However, it is unlikely that the number of completi-
ons will be sufficient to meet the growing demand for
housing. Cologne’s population grew by 3.5% between 2014
Housing supply and demand for and 2018 and although this was not as strong as the popu-
new buildings Cologne lation growth registered in other major German cities, de-
mand for housing in Cologne continues to rise, significantly
exceeding supply. By setting a target of around 5,000 new
apartments per annum, the City of Cologne is also recogni-
sing that this high level of demand cannot be satisfied by
the current volume of completions. At least 25,000 new
apartments are to be built by 2030 and due to the limited
space potential in the city, the focus has shifted to re-densi-
fication and the conversion of commercial space to resi-
dential use. Therefore, even large-scale development pro-
jects in the city will only be able to offer a relatively small
number of residential units and without mobilising large
volumes of land or making significant housing policy inter-
ventions, the future provision of a sufficient volume of af-
fordable housing will be difficult to guarantee.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Clouth-Quartier Nippes approx. 1,200 2022
Cologneo I Mülheim approx. 500 2021
Park Linné Braunsfeld approx. 500 2020
Wohnquartier Ossendorfer Gartenhöfe Ossendorf approx. 430 2021
Gewog-Physikersiedlung Porz approx. 270 2019
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Cologne 24Accelerated rental price growth, particularly
in the direction of the airport
Compared to last year’s trend, there has been a stronger
rise in average rents, with the median rent reaching €11.90/
sqm/month, corresponding to a rise of 3.0% over the past
Distribution of rental listings by price group 12 months. Despite falling short of the 5-year average (4.7%
per annum), rents here have clearly risen at a higher rate
than in Germany’s other major cities. Cologne also continues
to register the highest average rental price level in North
Rhein-Westphalia. While asking rents in the prime segment
fell slightly (to €17.50/sqm/month), rents in the lowest price
category developed above the average price trend. An ana-
lysis of rental price trends across the submarkets reveals a
mixed picture: while there were strong increases in rents in
the southwest of the city and especially towards the airport
along the railway line, rents decreased slightly on the wes-
tern city fringe.
Source: JLL, empirica systeme; Status: July 2019
Rental price bands for listed apartments Cologne Development of rental prices
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Cologne 25Asking rental prices Cologne
ì A 542
ì
A3 ìA1
ì
A 57
ìA 59
ì A1
Chorweiler ì
A1
ì A3
ì A1
Nippes Mülheim
Ehrenfeld ì
A3
ìA 57
ì
A4
ì A4 Lindenthal Innenstadt Kalk ì
A4
ìA 559
ì A4 ì
A 59
ì A3
ì A4
ìA1
ìA 555
ì A3
Rodenkirchen
Porz
ìA 61
ì
A3
ìA 555
0 5 10 Kilometers ì
A 553 ì
A 59
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
Residential City Profile | H1 2019 Cologne 26Prices in the lowest price category show
the most significant growth
Momentum in the market for condominium apartments in
Cologne has picked up again with prices rising by around
10% over the past 12 months. This contrasts with price
Distribution of condo listings by price group trends in the other Big 8 cities where growth rates have
fallen short of the 5-year average. The average asking price
is currently €3,860 per sqm. There was little momentum
observed in prime purchase prices (€5,850 per sqm), which
increased by 3.9% per annum compared to the previous
year, while purchase prices in the lowest price category
showed significant growth of around 20%. This is a clear
indication that purchaser demand for residential property
is shifting increasingly to the city fringes, which are now
experiencing accelerated price rises. Purchase prices on the
city centre fringe in Nippes and in Klettenberg (disused rail-
way land), and on the southeast bank of the Rhein (Hum-
boldt-Gremberg) and the eastern outskirts (Merheim and
Neubrück) have increased sharply. Conversely, slight decli-
nes have been observed in the north and south of the city
centre, in Lindenthal and in the south of Chorweiler.
Source: JLL, empirica systeme; Status: July 2019
Purchase price bands for condominiums Cologne Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Cologne 27Asking condominium prices Cologne
ì A 542
ì
A3 ìA1
ì
A 57
ìA 59
ì A1
Chorweiler ì
A1
ì A3
ì A1
Nippes Mülheim
Ehrenfeld ì
A3
ìA 57
ì
A4
ì A4 Lindenthal Innenstadt Kalk ì
A4
ìA 559
ì A4 ì
A 59
ì A3
ì A4
ìA1
ìA 555
ì A3
Rodenkirchen
Porz
ìA 61
ì
A3
ìA 555
0 5 10 Kilometers ì
A 553 ì
A 59
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
Residential City Profile | H1 2019 Cologne 28Housing market Leipzig
Housing construction potential especially of this population influx, the vacancy rate in the housing
on brownfield sites market has now fallen to below 2%. The City of Leipzig is
Despite the continued strong growth of Leipzig’s population reacting to this trend by shifting its principal focus to new
which exceeded 600,000 in 2018, the number of new dwel- residential construction to meet the growing demand for
lings completed every year in the city has remained very living space. Where fewer than 900 building permits were
low in recent years at less than 1,000. Leipzig has experi- granted in 2014, the figure for 2018 was 3,550. The number
enced the greatest growth among the Big 8, with its popu- of new residential completions was also significantly higher
lation growing by 7.2% between 2014 and 2018. As a result in 2018 than in 2017 at 1,928. Large disused industrial sites
in particular offer the opportunity to create contiguous new
development zones. Examples include the Lindenauer
Housing supply and demand for Bahnhof and Eutritzscher Freiladebahnhof (former railway
new buildings Leipzig holdings). There is also potential land available at the Bay-
erischer Bahnhof railway station. Considering the rapid in-
crease in the number of building permits granted and exis-
ting space potential, construction activity is expected to
remain high in the coming years. The reduction in the va-
cancy rate, absorption of renovation potential and strong
expansion in new residential construction are also reflec-
ted in price trends in the city’s housing market. Various
housing policy instruments were adopted by the City of
Leipzig in 2018 to guarantee the provision of sufficient af-
fordable living space over the coming years. These include
the tightening of rental cap limits: for example, existing
rents may only increase by a maximum of 15% within three
years from 2020. The second approach is the introduction
of a qualified rental index and enforcement of neighbour-
hood protection regulations in some parts of the city to
prevent disproportionate modernisation programmes.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Lindenauer Hafen Schönau approx. 500 2020
König-Albert-Residenz Gohlis/Möckern approx. 350 2020
Quartier Siebengrün Gohlis-Mitte approx. 350 2019
Wohnquartier Heeresbäckerei Gohlis/Möckern approx. 300 2019
Wohn- und Geschäftsquartier Prager Straße Reudnitz-Thonberg approx. 180 2021
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Leipzig 29Catch-up process in the lower rental price
categories and periphery
Despite strong rent rises in recent years, the pace of rental
growth in Leipzig has slowed down again recently. At €7.10/
sqm/month, the average rental price level in the first half of
Distribution of rental listings by price group 2019 was around 1.4% above the previous year’s figure, yet
significantly below the 5-year average growth rate of 5.4%
per annum. There was a stagnation in prime (€10.00/sqm/
month) and new-build rents in particular, while the lower
rental price categories continued to show strong growth
of around 4.6%. 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 ren-
tal price categories and peripheral locations. In an analysis
of submarkets, there have been strong rental price rises,
especially in the peripheral districts to the northeast and
south. However, given the rapid reduction in the volume of
vacancies and the dynamic population growth, significant
rental price rises can be expected across all rental price
categories over the coming years.
Source: JLL, empirica systeme; Status: July 2019
Rental price bands for listed apartments Leipzig Development of rental prices
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Leipzig 30Asking rental prices Leipzig
ìA9
ì A 14
ì
A 14
ì A 14
Nord
Nordwest ìA 14
ìA9 Nordost
ì
A 14
Alt-West
Mitte
Ost
ìA9
West
ì
A 14
Südost
Süd
ì
A 38
Südwest
ì
A 38
ìA 38 ì
A 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
Residential City Profile | H1 2019 Leipzig 31Highest price rises in the market for condominium
apartments among the Big 8
There is sustained momentum in the market for condomi-
nium apartments in Leipzig, although a slowdown is being
observed. The average purchase price for a condominium
Distribution of condo listings by price group apartment has reached €2,150 per sqm, 5.9% more than
during the same period last year. Leipzig remains the top
location among the Big 8 in terms of purchase price
growth, recording a 5-year average of around 11% and with
an increase of more than 19% compared to the previous
year, the strongest price rises were mainly observed in
the lowest purchase price categories. Conversely, prime
purchase prices (€4,250 per sqm) increased by 4.7% com-
pared to the previous year, significantly below the 5-year
average. Due to the reduction in vacancies, demand is
shifting increasingly to peripheral and previously relatively
inexpensive neighbourhoods which are now catching up in
terms of price trends. Particularly strong increases can be
observed, for example, in the northwest, but also in the
west of Leipzig and south of Grünau. The persistently high
demand will ensure that localised catch-up processes,
especially in peripheral locations, are likely to occur in the
Source: JLL, empirica systeme; Status: July 2019
coming years.
Purchase price bands for condominiums Leipzig Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Leipzig 32Asking condominium prices Leipzig
ìA9
ì A 14
ì
A 14
ì A 14
Nord
Nordwest ìA 14
ìA9 Nordost
ì
A 14
Alt-West
Mitte
Ost
ìA9
West
ì
A 14
Südost
Süd
ì
A 38
Südwest
ì
A 38
ì
A 38 ì
A 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
Residential City Profile | H1 2019 Leipzig 33Housing market Munich
Increasing demand for unconventional five-digit volume of the previous year was once again
housing policy instruments reached (around 13,480 permits). Munich’s population is
Following the significant increase in the volume of comple- also continuing to grow, albeit less dynamically than in the
tions in new residential construction last year, a high result other major cities (the population grew by 3.3% between
was again achieved in Munich in 2018 with around 8,100 2014 and 2018). The City of Munich assumes that the popu-
new apartments, and further strong new-build activity is lation could grow by up to 20% by 2035. To satisfy not only
also to be expected in the coming years. With around the existing deficit in housing supply, but also the constant-
12,580 building permits granted in 2018, the record high ly rising demand and to reduce the high housing cost bur-
den, a further intensification of new construction activity is
necessary. In addition to absorbing existing space potential
Housing supply and demand for and converting existing space in the city, such as the deve-
new buildings Munich lopment of a former cattle yard in Ludwigsvorstadt-Isarvor-
stadt (600 apartments), larger projects that integrate the
surrounding area and network it with the Munich labour
market through additional infrastructure are also required.
This would not only have the advantage of facilitating the
development of large units of contiguous space, but would
also avoid further confrontations with residents who had
recently shown increased resistance to city centre housing
projects. In addition to efforts to intensify new construction
activity, Munich is also discussing other, sometimes uncon-
ventional housing policy instruments to offer affordable
housing – especially to people in the lower income bra-
ckets. This includes the idea of a Munich Citizens’ Fund or
the reintroduction of company-owned apartments.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Diverse Projekte im Quartier Paul-Gerhardt-Allee Pasing-Obermenzing approx. 2,500 2021
Stadtquartier Am Südpark Thalk.Obersendl.-Forsten-Fürstenr.-Solln approx. 1,440 2019
Messestadt Riem Trudering-Riem approx. 1,700 2019
Stadtquartier DiamaltPark Allach-Untermenzing approx. 800 2020
Wohnquartier Meiller-Gärten Moosach approx. 600 2020
Stadtquartier ehemaliger Viehhof Sendling Sendling approx. 600 2020
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Munich 34Stabilisation of rents at a high level
Average asking rents in Munich rose by just 1% between the
first half of 2018 and corresponding period in 2019, to reach
€19.45/sqm/month. This low growth rate was driven in
particular by the decline in prime rents. In the first half of
Distribution of rental listings by price group 2019, prime rents were around €27.65/sqm/month, 7.5%
lower compared to the same period last year. The lower
rental price categories however recorded growth of 3.2%.
Due to the persistently high pressure on demand, apart-
ments with less than 45 sqm of living space and new-build
apartments in particular were able to achieve strong price
increases (5.8% and 5.3% respectively). There are also ma-
jor variations in the development of rental prices across
the submarkets. For example, a comprehensive decline in
rents can be observed in the city centre neighbourhoods.
Conversely, significant increases can only be found on the
western periphery. Despite slight stagnation, a long-term
decline in rents is not to be expected in Munich, as the
excess demand remains high and vacancies are virtually
non-existent. On the contrary, subdued price growth can
be expected in the future due to saturation.
Source: JLL, empirica systeme; Status: July 2019
Rental price bands for listed apartments Munich Development of rental prices
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Munich 35Asking rental prices Munich
ìA 92
ì
A9
ìA8
ìA 99
ì A 99
Feldmoching-
Hasenbergl
ìA 99 ì A9
ì A8 Milbertshofen-
Am Hart Schwabing- ì
A 99
Allach-
Freimann
Untermenzing
Moosach
ì
A 99
Aubing- Schwabing-
Lochhausen- West
Langwied Neuhausen- Bogenhausen
ìA 99
Pasing-
Obermenzing
Nymphenburg
Maxvorstadt
Altstadt-
Laim Schwanthalerhöhe
Lehel ì A 94
Ludwigsvorstadt- Au-
Haidhausen Berg am Trudering-
ìA 96 Isarvorstadt Laim Riem
Sendling-
ìA 96 Hadern Westpark Sendling
Obergiesing Ramersdorf-
Untergiesing-
Perlach
Harlaching
Thalkirchen-Obersendling-
Forstenried-
Fürstenried-Solln ì A 99
ì A 95
ìA8
ì
A 995
0 5 10 Kilometers
ì
A 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
Residential City Profile | H1 2019 Munich 36Average purchase prices over €10,000 per sqm
within the inner city ring road
In the market for condominium apartments, purchase price
growth remained high at 5.9%, albeit below the 5-year ave-
rage of 7.8%. The average asking price for a condominium
Distribution of condo listings by price group apartment is currently €7,680 per sqm; however, within the
inner city ring road, the average purchase price in many
neighbourhoods is already above €10,000 per sqm. Both
the prime and lowest price segments have recorded strong
growth: while a price rise of around 11.0% has been recor-
ded in the lowest purchase price category over the past
12 months (5-year average: 9.7%), prime purchase prices
have increased by just under 12.5%. Therefore, the average
prime purchase price in the first half of 2019 was around
€11,130 per sqm. This development reflects the continuing
high demand for apartments in the luxury segment. Slight
declines in asking prices can only be observed in locations
on the fringes of the city centre along the River Isar from
north to south.
Source: JLL, empirica systeme; Status: July 2019
Purchase price bands for condominiums Munich Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Munich 37Asking condominium prices Munich
ìA 92
ì
A9
ìA8
ìA 99
ì A 99
Feldmoching-
Hasenbergl
ì
A 99 ì A9
ì A8 Milbertshofen-
Am Hart Schwabing- ì
A 99
Allach-
Freimann
Untermenzing
Moosach
ì
A 99
Aubing- Schwabing-
Lochhausen- West
Langwied Neuhausen- Bogenhausen
ìA 99
Pasing-
Obermenzing
Nymphenburg
Maxvorstadt
Altstadt-
Laim Schwanthalerhöhe
Lehel ì A 94
Ludwigsvorstadt- Au-
Haidhausen Berg am Trudering-
ìA 96 Isarvorstadt Laim Riem
Sendling-
ìA 96 Hadern Westpark Sendling
Obergiesing Ramersdorf-
Untergiesing-
Perlach
Harlaching
Thalkirchen-Obersendling-
Forstenried-
Fürstenried-Solln ì A 99
ì A 95
ìA8
ì
A 995
0 5 10 Kilometers
ì
A 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
Residential City Profile | H1 2019 Munich 38Housing market Stuttgart
Creation of new living space essentially now only possi- grown by around 9% and is expected to rise to around
ble through re-densification and conversion 614,000 in 2018 due to a high birth rate and net migration
Stuttgart remains a very attractive location, especially for of around 2,700. Despite the recent slowdown in populati-
younger households. In addition to its role as a growing on growth, the City of Stuttgart expects the population to
business location with supra-regional significance, the grow by a further 38,000 up to 2030. In view of the growing
number of study and training places on offer has been demand for housing and existing deficit, the volume of
growing for years. This is also reflected in the population completions remains below the estimated requirement for
growth. In the past ten years, Stuttgart’s population has new residential construction. Although the number of com-
pletions in 2018 (1,850 apartments) was significantly higher
than the 10-year average (1,630 apartments per annum),
Housing supply and demand for there was a 13% fall in the volume of completions year-on-
new buildings Stuttgart year. Yet, despite the increase in the number of building
permit granted in 2018 (2,100 apartments), no noticeable
easing of tensions in residential construction is to be ex-
pected over the coming years. Due to the scarcity of large
development sites, new living space can only be created
essentially through re-densification and conversion. Howe-
ver, as a result of the capacity bottlenecks in development
land, even the largest development projects in the city will
offer a relatively small number of residential units. The po-
tential new urban neighbourhood in the east of Stuttgart
on the site near the Gaskessel (gas storage tank) with a po-
tential of 2,500 apartments is therefore an exception, but
will not bring rapid, immediate relief to the housing market
due to the development period. In future, it will probably
be necessary to rely on the large-scale conversion of com-
mercial space to residential use and the incorporation of
the periphery to meet the high excess demand.
Source: destatis, BBSR housing forecast 2015, JLL; Status: July 2019
Selected developments under constructions
Name Location Residential units Completion date
Wohnquartier Giebel Giebel approx. 340 2023
Wohnquartier Olga-Areal West approx. 220 2019
Wohnen am Höhenpark Killesberg Feuerbach approx. 200 2019
Diverse Projekte im Hansa-Areal Möhringen approx. 400 ab 2020
Wohnquartier Am Schwanenplatz Stuttgart Ost approx. 100 2019
Source: Thomas Daily, JLL; Status: July 2019
Residential City Profile | H1 2019 Stuttgart 39Rental price growth falls below inflation rate
Average asking rents in Stuttgart have risen by around 1.0%
to €14.55/sqm/month compared to the same period last
year, despite falling slightly during the year. Rental price
rises have therefore weakened considerably compared to
Distribution of rental listings by price group the 5-year average of 5.8% and now lie below the general
inflation rate. While the prime segment recorded a decline
in rental prices of around 8%, the new-build segment recor-
ded the strongest growth of just under 5.4%. This rental
price trend is reflected across all submarkets. While decli-
nes are being observed to the west of the city centre and in
parts of Weilimdorf and Cannstatt, strong increases can be
found in asking rents in the south of the city and in the
neighbourhoods adjoining the city centre to the north and
east. Due to insufficient new residential construction and
existing excess demand, further albeit moderate price in-
creases are to be expected in the coming years.
Source: JLL, empirica systeme; Status: July 2019
Rental price bands for listed apartments Stuttgart Development of rental prices
Source: JLL, empirica systeme; Status: July 2019 Source: JLL. empirica systeme, IDN immodaten; Status: July 2019
Residential City Profile | H1 2019 Stuttgart 40You can also read
