Poor buy-to-let yields in Germany's big cities

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Prices of houses and apartments in Germany continue to rise at a rapid rate.

Munich and Berlin are Germany´s high-cost leaders, with prices for two-bedroom apartments ranging from EUR 384,000 to EUR 789,500. The purchase price of apartments in Munich´s prime residential districts is around €7,800 euros per sq. m.

Frankfurt city center is now about as expensive as Berlin and Munich.

How much will you earn from a buy-to-let apartment?

• Munich apartments have a rental yield of 2.14% to 3.74% with a city average of 2.78%.
• Berlin apartments earn a rental yield between 1.93% to 4.44% with an average of 2.84%
• Frankfurt apartments yield between 2.14% to 5.16% with an average of 3.37%.
• Stuttgart apartments can yield you between 2.84% to 4.72% with an average of 3.81%.
• Hamburg apartments yield stay between 1.54% to 5.71% with an average of 2.83%.
• Leipzig apartments earn a yield between 2.29% to 3.80% with an average of 3.18%.
• Cologne apartments have a yield between 2.53% to 3.91% with an average of 3.04%.
• Düsseldorf apartments yield you between 2.35% to 4.04% with an average of 3.09%.

Rental yields on investment properties in Germany are not very good, especially as the yield figures we give are gross, not net.

However our view is that investment properties in Germany will continue to rise in value, given the extraordinary and continuing attention that Germany is receiving as a property investment destination.

These are extremely rough approximations; the table gives more accurate figures.

Round trip transaction costs are moderate to high in Germany. See our Germany transaction costs analysis and our Residential property transaction costs in Germany compared to other countries.