Published in March 2021 Frankfurt - Residential City Profile - JLL
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Residential City Profile Frankfurt Frankfurt | 2nd half of 2020 Published in March 2021
Housing market Frankfurt
Frankfurt counteracts scarcity of available land the highest number of new building permits issued since the
with a multitude of conversions early 1960s (2019: 5,829). The level of completions in Frank-
After a high point in terms of the number of newly completed furt was actually a little above the estimated requirement for
apartments in 2017 with 5,122, the number of completions additional apartments (intermediate scenario: around 3,135
has remained at a high level ever since (4,636 new apart- residential units each year until 2030). However, it remains to
ments in 2019). This significant increase in the number of be seen to what extent this level can be maintained over the
completions has been due mainly to a considerable growth longer term. On the one hand, a large proportion of the new
in construction backlog in the preceding period: in 2018 building permits (approximately 1,195 apartments) were is-
alone, there were 7,329 newly completed apartments and sued for the proposed conversion of commercial properties
to residential use – a clear sign of the scarcity on the supply
side. On the other hand, the increasing shortage of building
Housing supply and demand for land has meant that housing projects are more rarely con-
new buildings Frankfurt structed on undeveloped sites and there are significant re-
strictions on the supply side because of the high land prices.
Frankfurt’s city council has therefore passed a building land
directive, which is a planning decision to guarantee that any
future residential development must contain at least 30%
publicly subsidised housing. Frankfurt experienced substan-
tial population growth of 50,000 in the period from 2014 to
2020. Even if this growth has recently slowed down due to
the lower levels of population influx, the average inward mi-
gration, especially amongst the 18-30-year age group, remains
high (5-year average approximately 8,000 p.a.). Together with
the more intensive development of building sites, the result-
ing shift in demand is also having an effect on the supply
side: by far, the greatest proportion of completions is for stu-
dio and 2-room apartments (around 46%). Despite a high
proportion of new international arrivals in this age group and
*Additional annual need for housing units (includes also apartments in detached the COVID-19 movement restrictions, Frankfurt was still expe-
houses) without consideration of current construction deficits.
Source: destatis, JLL; Status: January 2021 riencing positive population growth as at mid-year 2020.
Selected developments under constructions
Name Location Residential units Completion date
Hafenpark Ostend approx. 600 2025
Wohnquartier Berghöfe Kalbach-Riedberg approx.360 2023
Wohnanlage Ruby Tower Niederrad approx. 315 2021
Wohnquartier Wings Gallus approx. 280 2021
Wohnquartier Grünhoch2 Nieder-Eschbach approx. 280 2022
Source: Thomas Daily, JLL; Status: January 2021
Residential City Profile | H2 2020 Frankfurt 2Increased rental price growth in the new-build seg-
ment, more subdued growth in other segments
Average asking rents in Frankfurt increased by 4.2% year-
on-year in the second half of 2020 to their current level of
€16.00/sqm/month. This development is at around the
Distribution of rental listings by price group same level as the 5-year average (4.4% p.a.) and around
1 percentage point above the previous year’s level (3.2%).
There was a significant fall in momentum both in the
prime segment (2.3%) and in the lower priced segment
(lowest 10% of all rental offers at 2.3%) compared to the
preceding years (5-year averages: 5.7% and 4.3% p.a., re-
spectively). Conversely, prices in the new-build segment
rose by 8.7% to their current level of €17.55/sqm/month,
a significant increase compared to both the previous year
(0.9%) and the 5-year average (3.6% p.a.). In an analysis
of locations, the most significant rental price increases
in the second half of the year were observed in the City
Centre I submarket with the Gallus, Gutleutviertel, Central
Station, Old Town and City Centre districts, and in the
West and Mitte-West submarkets.
Source: JLL, empirica systeme; Status: January 2021
Rental price bands for listed apartments Frankfurt Development of rental prices
Source: JLL, empirica systeme; Status: January 2021 Source: JLL, empirica systeme, IDN immodaten; Status: January 2021
Residential City Profile | H2 2020 Frankfurt 3Asking rental prices Frankfurt
Nieder-
Erlenbach
Nieder-
Eschbach
Kalbach Harheim
Bonames
Frankfurter
Niederursel
Berg Berkersheim
Heddernheim
Eschersheim Bergen-
Preungesheim Enkheim
Eckenheim
Dornbusch
Praunheim A 661 Seckbach
Ginnheim
A5
Hausen Westend-
B 44 Nord Nordend-
B8 West Bornheim B 8/40
A 66 Rödelheim Riederwald
Nordend-
Sossenheim
Bockenheim Westend- Ost Fechenheim
Unterliederbach A 648 Süd Ostend
B 40/44 Innenstadt
Altstadt
Höchst Gallusviertel Bahnhofsviertel
Nied
Zeilsheim Sachsenhausen-
B 40a
Griesheim Oberrad
Nord
Gutleutviertel B3
Sindlingen Niederrad
Schwanheim B 43/44
Sachsenhausen-
Süd
A3
B 43
Flughafen Frankfurt
Flughafen
0 5 10 km
OpenStreetMap-contributors
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
Residential City Profile | H2 2020 Frankfurt 4Continuing growth, especially for purchase prices
in the new-build segment
The average purchase price for condominium apartments
in Frankfurt of €6,550/sqm was an increase of 11.8% in the
second half of 2020. This continues the growth of the previ-
Distribution of condo listings by price group ous year (9.7%) and even exceeds the 5-year average (8.5%
p.a.). The strongest impetus for this half-year trend did not
come from the prime segment (€9,460/sqm), as this is actu-
ally a little below the previous year’s level (-0.3%) after the
significant growth in this segment of 11.9% last year, and a
5-year average of 8.6% p.a. The most significant momen-
tum came from the lower priced segment (€4,010/sqm)
where purchase prices grew by 12.0% (previous year: 13.7%),
and the new-build segment where asking prices in the sec-
ond half of 2020 were 13.6% higher than in the same period
the previous year. This growth is again considerably above
both the previous year’s level (8.2%) and the 5-year average
(9.6% p.a.). There was also further marginal growth in the
absolute prime segment in Frankfurt with a price of around
€15,000/sqm. In an analysis of locations, there was signifi-
cant growth in purchase prices in the North East, Mitte-
West and Mitte-North submarkets, but purchase prices
Source: JLL, empirica systeme; Status: January 2021
stagnated in the city centre districts.
Purchase price bands for condominiums Frankfurt Development of purchase prices for condominiums
Source: JLL, empirica systeme; Status: January 2021 Source: JLL, empirica systeme, IDN immodaten; Status: January 2021
Residential City Profile | H2 2020 Frankfurt 5Asking condominium prices Frankfurt
Nieder-
Erlenbach
Nieder-
Eschbach
Kalbach Harheim
Bonames
Frankfurter
Niederursel
Berg Berkersheim
Heddernheim
Eschersheim Bergen-
Preungesheim Enkheim
Eckenheim
Dornbusch
Praunheim A 661 Seckbach
Ginnheim
A5
Hausen Westend-
B 44 Nord Nordend-
B8 West Bornheim B 8/40
A 66
Rödelheim Riederwald
Nordend-
Sossenheim
Bockenheim Westend- Ost Fechenheim
Unterliederbach A 648 Süd Ostend
B 40/44 Innenstadt
Altstadt
Höchst Gallusviertel Bahnhofsviertel
Nied
Zeilsheim Sachsenhausen-
B 40a
Griesheim Oberrad
Nord
Gutleutviertel B3
Sindlingen Niederrad
Schwanheim B 43/44
Sachsenhausen-
Süd
A3
B 43
Flughafen Frankfurt
Flughafen
0 5 10 km
OpenStreetMap-contributors
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
Residential City Profile | H2 2020 Frankfurt 6Contacts
Michael Bender Helen Lindner Ralf Kemper
Head of Residential Germany Head of Residential Development Head of Valuation & Transaction
Frankfurt Germany Advisory Germany
+49 (0) 69 2003 2333 Berlin Frankfurt
michael.bender@eu.jll.com +49 (0) 30 203980 703 +49 (0) 69 2003 1092
helen.lindner@eu.jll.com ralf.kemper@eu.jll.com
Helge Scheunemann Roman Heidrich Sebastian Grimm
Head of Research Germany Lead Director Valuation & Lead Director Valuation &
Hamburg Transaction Advisory Transaction Advisory
+49 (0) 40 350011 225 Berlin Frankfurt
helge.scheunemann@eu.jll.com +49 (0) 30 203980 106 +49 (0) 69 2003 1196
roman.heidrich@eu.jll.com sebastian.grimm@eu.jll.com
Johannes Roesler
Team Leader Residential Investment
Frankfurt
+49 (0) 69 2003 1362
johannes.roesler@eu.jll.com
Authors
Dr. Sören Gröbel Christian Giesemann
Director Research Team Leader Research
Berlin Berlin
+49 (0) 30 203980 151 +49 (0) 30 203980 201
soeren.groebel@eu.jll.com christian.giesemann@eu.jll.com
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