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

Residential Valuation Specialist | November 09, 2022

Last Updated: Sept. 23, 2022
BERLIN - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
Charlottenburg-Wilmersdorf
Studio €248,000 €621 3.00%
1-Bedroom €389,000 €1,202 3.71%
2-Bedroom €570,000 €1,727 3.63%
3-Bedroom €980,000 €2,485 3.04%
4+Bedroom €1,299,500 €2,302 2.13%
Pankow (district)
Studio €198,750 €475 2.87%
1-Bedroom €319,000 €675 2.54%
2-Bedroom €599,000 €1,200 2.40%
3-Bedroom €829,000 €1,395 2.02%
4+Bedroom €1,034,000 €2,304 2.67%
Mitte (district)
Studio €207,000 €730 4.23%
1-Bedroom €310,000 €1,040 4.03%
2-Bedroom €649,000 €2,000 3.70%
3-Bedroom €899,000 €2,615 3.49%
4+Bedroom €1,650,000 €5,103 3.71%
Friedrichshain-Kreuzberg
Studio €220,000 €450 2.45%
1-Bedroom €380,000 €676 2.13%
2-Bedroom €540,300 €900 2.00%
3-Bedroom €900,000 €1,922 2.56%
4+Bedroom €1,447,500 €3,171 2.63%
Tempelhof-Schöneberg
Studio €199,009 €500 3.01%
1-Bedroom €304,500 €594 2.34%
2-Bedroom €449,000 €755 2.02%
3-Bedroom €709,000 €2,500 4.23%
4+Bedroom €1,101,750 €4,078 4.44%
Treptow-Köpenick
Studio €168,900 €463 3.29%
1-Bedroom €299,000 €680 2.73%
2-Bedroom €429,000 €987 2.76%
3-Bedroom €625,000 €1,760 3.38%
Potsdam
Studio €189,000 €445 2.83%
1-Bedroom €297,500 €604 2.43%
2-Bedroom €559,000 €900 1.93%
3-Bedroom €810,000 €1,700 2.52%
4+Bedroom €1,282,000 €2,221 2.08%
Neukölln (district)
Studio €189,500 €398 2.52%
1-Bedroom €296,500 €545 2.21%
2-Bedroom €384,000 €805 2.52%
3-Bedroom €657,500 €1,347 2.46%
4+Bedroom €808,050 €1,318 1.96%
Berlin avg. Rental Yields 2.84%
FRANKFURT AM MAIN - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
District of Offenbach
Studio €130,000 €546 5.04%
1-Bedroom €230,000 €725 3.78%
2-Bedroom €299,000 €985 3.95%
3-Bedroom €427,500 €1,250 3.51%
4+Bedroom €682,500 €1,600 2.81%
Main-Kinzig District
Studio €129,000 €360 3.35%
1-Bedroom €198,000 €670 4.06%
2-Bedroom €286,500 €900 3.77%
3-Bedroom €350,000 €1,100 3.77%
4+Bedroom €544,000 €1,340 2.96%
Main-Taunus-Kreis
Studio €139,000 €523 4.52%
1-Bedroom €248,000 €800 3.87%
2-Bedroom €377,500 €1,020 3.24%
3-Bedroom €572,000 €1,370 2.87%
4+Bedroom €1,006,750 €1,885 2.25%
Hochtaunuskreis
Studio €194,000 €585 3.62%
1-Bedroom €269,000 €800 3.57%
2-Bedroom €395,000 €1,090 3.31%
3-Bedroom €650,000 €1,350 2.49%
4+Bedroom €1,022,500 €1,880 2.80%
Offenbach am Main
Studio €189,000 €560 3.56%
1-Bedroom €239,000 €690 3.46%
2-Bedroom €350,000 €995 3.41%
3-Bedroom €495,000 €1,499 3.63%
4+Bedroom €660,000 €1,880 3.42%
Groß-Gerau district
Studio €131,334 €565 5.16%
1-Bedroom €220,000 €700 3.82%
2-Bedroom €325,000 €1,053 3.89%
3-Bedroom €459,000 €1,150 3.01%
4+Bedroom €654,000 €1,290 2.37%
Downtown II
Studio €319,450 €900 3.38%
1-Bedroom €599,000 €1,090 2.18%
2-Bedroom €799,000 €1,500 2.25%
3-Bedroom €1,045,000 €2,260 2.60%
4+Bedroom €1,500,000 €2,675 2.14%
Wetteraukreis
Studio €319,450 €900 4.43%
1-Bedroom €599,000 €1,090 3.65%
2-Bedroom €799,000 €1,500 3.32%
3-Bedroom €1,045,000 €2,260 2.22%
4+Bedroom €1,500,000 €2,675 3.27%
Frankfurt am Main avg. Rental Yields 3.37%
STUTTGART - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
Center
Studio €249,000 €890 4.29%
1-Bedroom €347,000 €1,250 4.32%
2-Bedroom €389,500 €1,531 4.72%
3-Bedroom €509,000 €1,680 3.96%
4+Bedroom €799,250 €1,890 2.84%
Stuttgart (all locations)
Studio €195,000 €650 4.00%
1-Bedroom €290,000 €990 4.10%
2-Bedroom €385,000 €1,220 3.80%
3-Bedroom €623,700 €1,600 3.08%
4+Bedroom €800,000 €1,975 2.96%
Stuttgart avg. Rental Yields 3.81%
MUNICH - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
District of Munich
Studio €283,102 €850 3.60%
1-Bedroom €452,300 €1,080 2.87%
2-Bedroom €598,000 €1,400 2.81%
3-Bedroom €819,000 €1,795 2.63%
4+Bedroom €1,249,000 €2,225 2.14%
Bogenhausen
Studio €319,000 €995 3.74%
1-Bedroom €510,000 €1,360 3.20%
2-Bedroom €789,500 €1,695 2.58%
3-Bedroom €1,099,500 €2,380 2.60%
4+Bedroom €2,562,500 €4,701 2.20%
District Fürstenfeldbruck
Studio €233,000 €450 2.32%
1-Bedroom €415,000 €1,044 3.02%
2-Bedroom €559,000 €1,255 2.69%
3-Bedroom €760,500 €1,735 2.74%
4+Bedroom €1,024,500 €2,190 2.57%
Munich avg. Rental Yields 2.78%
HAMBURG - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
Wandsbek (district)
Studio €176,000 €490 3.34%
1-Bedroom €349,000 €766 2.63%
2-Bedroom €430,000 €1,170 3.27%
3-Bedroom €670,000 €1,532 2.74%
4+Bedroom €1,140,000 €1,490 1.57%
Hamburg-Nord
Studio €274,500 €668 2.92%
1-Bedroom €384,500 €817 2.55%
2-Bedroom €620,000 €1,170 2.26%
3-Bedroom €1,232,500 €1,775 1.73%
4+Bedroom €1,852,500 €3,321 2.15%
Eimsbüttel (district)
Studio €288,500 €610 2.54%
1-Bedroom €384,500 €850 2.65%
2-Bedroom €485,000 €1,020 2.52%
3-Bedroom €720,000 €2,975 4.96%
4+Bedroom €1,495,000 €3,220 2.58%
Pinneberg District
Studio €122,000 €400 3.93%
1-Bedroom €225,000 €570 3.04%
2-Bedroom €300,000 €822 3.29%
3-Bedroom €409,000 €1,252 3.67%
4+Bedroom €409,500 €1,950 5.71%
Altona
Studio €294,000 €662 2.70%
1-Bedroom €399,000 €850 2.56%
2-Bedroom €770,000 €1,325 2.06%
3-Bedroom €956,000 €1,463 1.84%
4+Bedroom €1,904,500 €2,450 1.54%
Hamburg avg. Rental Yields 2.83%
LEIPZIG - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
Center
Studio €156,750 €497 3.80%
1-Bedroom €260,000 €635 2.93%
2-Bedroom €379,000 €885 2.80%
3-Bedroom €580,000 €1,606 3.32%
4+Bedroom €975,000 €1,860 2.29%
Leipzig (all locations)
Studio €110,276 €349 3.80%
1-Bedroom €182,000 €499 3.29%
2-Bedroom €279,500 €700 3.01%
3-Bedroom €488,500 €1,183 2.91%
4+Bedroom €617,500 €1,860 3.61%
Leipzig avg. Rental Yields 3.18%
COLOGNE - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
Center
Studio €205,500 €578 3.38%
1-Bedroom €379,000 €800 2.53%
2-Bedroom €530,000 €1,270 2.88%
3-Bedroom €793,650 €1,750 2.65%
4+Bedroom €1,064,800 €2,780 3.13%
Cologne (all locations)
Studio €169,000 €550 3.91%
1-Bedroom €286,000 €770 3.23%
2-Bedroom €399,500 €1,090 3.27%
3-Bedroom €587,500 €1,400 2.86%
4+Bedroom €850,000 €1,800 2.54%
Cologne avg. Rental Yields 3.04%
DÜSSELDORF - Apartments COST (€) YIELD (p.a.)
TO BUY MONTHLY RENT
Center
Studio €198,000 €570 3.45%
1-Bedroom €397,500 €850 2.57%
2-Bedroom €594,000 €1,250 2.53%
3-Bedroom €995,000 €1,950 2.35%
4+Bedroom €2,195,000 €5,160 2.82%
Düsseldorf (all locations)
Studio €180,000 €585 3.90%
1-Bedroom €289,000 €799 3.32%
2-Bedroom €423,000 €1,110 3.15%
3-Bedroom €690,000 €1,600 2.78%
4+Bedroom €995,000 €3,350 4.04%
Düsseldorf avg. Rental Yields 3.09%
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

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.