Global Property Guide

Financial Information for the Residential Property Buyer


Poor yields in Germany's big cities

Last Updated: June 17, 2017

Last Updated: Jun. 15 2017
BERLIN
CHARLOTTENBURG-WILMERSDORF
Charlottenburg apartments
COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO
BUY
MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 201,600 610 3.63% 4,032 12.20
70 sq. m. 323,820 875 3.24% 4,626 12.50
90 sq. m. 531,630 1,305 2.95% 5,907 14.50
130 sq. m. 723,320 1,508 2.50% 5,564 11.60
Grunewald apartments
80 sq. m. 326,560 n.a. n.a. 4,082 n.a.
120 sq. m. 635,040 n.a. n.a. 5,292 n.a.
200 sq. m. 1,004,600 n.a. n.a. 5,023 n.a.
Schmargendorf apartments
60 sq. m. 266,760 690 3.10% 4,446 11.50
130 sq. m. 618,280 1,404 2.72% 4,756 10.80
Wilmersdorf apartments
50 sq. m. 200,900 650 3.88% 4,018 13.00
70 sq. m. 261,170 861 3.96% 3,731 12.30
90 sq. m. 507,960 1,107 2.62% 5,644 12.30
130 sq. m. 581,100 1,274 2.63% 4,470 9.80
Westend apartments
60 sq. m. 253,980 672 3.18% 4,233 11.20
BERLIN
FRIEDRICHSHAIN-KREUZBERG
Friedrichshain apartments
50 sq. m. 203,800 850 5.00% 4,076 17.00
70 sq. m. 290,220 959 3.97% 4,146 13.70
90 sq. m. 413,730 1,188 3.45% 4,597 13.20
110 sq. m. 553,300 1,540 3.34% 5,030 14.00
BERLIN
MITTE
Mitte apartments
50 sq. m. 275,000 900 3.93% 5,500 18.00
70 sq. m. 346,430 1,057 3.66% 4,949 15.10
90 sq. m. 442,620 1,377 3.73% 4,918 15.30
110 sq. m. 557,150 1,430 3.08% 5,065 13.00
Moabit apartments
50 sq. m. 182,400 550 3.62% 3,648 11.00
70 sq. m. 279,790 770 3.30% 3,997 11.00
90 sq. m. 343,890 1,080 3.77% 3,821 12.00
BERLIN
PANKOW
Prenzlauer Berg apartments
80 sq. m. 212,300 675 3.82% 4,246 13.50
70 sq. m. 365,750 889 2.92% 5,225 12.70
90 sq. m. 493,560 1,188 2.89% 5,484 13.20
BERLIN
STEGLITZ-ZEHLENDORF
Steglitz apartments
50 sq. m. 182,400 540 3.55% 3,648 10.80
70 sq. m. 249,900 721 3.46% 3,570 10.30
90 sq. m. 344,070 990 3.45% 3,823 11.00
Zehlendorf apartments
90 sq. m. 176,890 756 5.13% 2,527 10.80
90 sq. m. 318,240 1,008 3.80% 3,536 11.20
MUNICH
Alstadt-Lehel apartments
100 sq. m. 621,800 2,270 4.38% 6,218 22.70
Bogenhausen apartments
50 sq. m. 325,450 1,395 5.14% 6,509 27.90
70 sq. m. 495,810 1,414 3.42% 7,083 20.20
90 sq. m. 675,900 1,773 3.15% 7,510 19.70
Schwabing - West apartments
90 sq. m. 244,920 1,032 5.06% 8,164 34.40
50 sq. m. 385,000 1,440 4.49% 7,700 28.80
70 sq. m. 529,130 1,701 3.86% 7,559 24.30
90 sq. m. 745,200 2,259 3.64% 8,280 25.10
Schwabing - Freimann apartments
40 sq. m. 337,720 1,148 4.08% 8,443 28.70
80 sq. m. 610,960 1,808 3.55% 7,637 22.60
120 sq. m. 1,015,320 2,496 2.95% 8,461 20.80
Neuhasen - Nymphenburg apartments
80 sq. m. 447,400 1,270 3.41% 8,948 25.40
70 sq. m. 571,620 1,407 2.95% 8,166 20.10
90 sq. m. 731,250 1,746 2.87% 8,125 19.40
Maxvordstadt apartments
60 sq. m. 568,020 1,602 3.38% 9,467 26.70
100 sq. m. 843,800 2,370 3.37% 8,438 23.70
FRANKFURT
Bockenheim apartments
80 sq. m. 413,760 1,088 3.16% 5,172 13.60
100 sq. m. 550,400 1,600 3.49% 5,504 16.00
Bornheim apartments
60 sq. m. 370,860 870 2.82% 6,181 14.50
100 sq. m. 579,000 1,290 2.67% 5,790 12.90
Westend -Sud apartments
60 sq. m. 323,400 1,386 5.14% 5,390 23.10
100 sq. m. 594,000 2,150 4.34% 5,940 21.50
Sachsenhausen apartments
60 sq. m. 382,560 900 2.82% 6,376 15.00
100 sq. m. 544,700 1,430 3.15% 5,447 14.30
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: IMMOWELT Definitions: Data FAQ See also: Update Schedule

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

Munich is Germany’s high-cost leader, with prices per square metre (sq. m.) from €6,000 to €10,000.  The purchase price of apartments in Munich´s prime residential districts is around €7,800 euros per sq. m.

Berlin is becoming increasingly expensive, with a price range of between €3,000 to €6,000, depending on locality. 

Frankfurt is now about as expensive as Berlin.

How much will you earn?

  • In Munich a 120 sq. m. apartment can rent for around 2,250 euros a month, earning a yield of 3.5%.
  • in Berlin a 120 sq. m. apartment can rent for around 1,500 euros a month, earning a yield of 3.5%
  • in Frankfurt, a 120 sq. m. apartment can rent for around 1,700 euros a month, earning a yield of 3.7%.

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

These are not high yields.

Wherever you buy, you are unlikely to have much problem letting your apartment. Especially at the lower end there is an acute shortage of affordable apartments as the German boom continues, sucking in workers from all over Europe.

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

Comments

huda | April 17, 2010

please i want an apartment 120-200.sqm with minimum 3 rooms maximum 15 minutes walking to the center or 10 minutes by underground 3-4 stops.thanks

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