Global Major Cities Guide

An overview of buying property in Frankfurt, including types of real estate and the general market conditions.

Sections

Comprehensive Guide to the Real Estate Market in Frankfurt, Germany: Housing and Accommodation

Frankfurt, Germany’s financial hub and one of Europe’s most international cities, has a dynamic and competitive real estate market. Whether you’re planning to rent or buy, understanding the local housing market is essential for making informed decisions. Below is a detailed guide covering rental and purchase options, average costs, legal procedures, recommended neighborhoods, and practical tips for navigating the housing market in Frankfurt.

1. Rental Market in Frankfurt

Overview

Renting is the most common option for residents in Frankfurt, especially for expats and newcomers. The rental market is competitive due to high demand, driven by the city’s status as a financial and business hub.

Average Rental Costs

Rental prices in Frankfurt vary depending on the neighborhood, property size, and condition. Below are approximate monthly rental costs as of 2023:

Studio/1-bedroom apartment (40–60 sqm): €1,000–€1,500
2-bedroom apartment (70–90 sqm): €1,500–€2,500
3-bedroom apartment (100+ sqm): €2,500–€4,000
Shared accommodation (WG – Wohngemeinschaft): €500–€800 per room

Note: Prices are higher in central areas like Innenstadt, Westend, and Sachsenhausen, while outer districts like Höchst or Fechenheim are more affordable.

Finding Rental Properties

Online Platforms: Websites like Immobilienscout24, Immonet, and WG-Gesucht are popular for finding apartments and shared housing.
Real Estate Agents (Makler): Agents can help you find properties but typically charge a commission (Provision) of up to 2.38 months’ rent (including VAT).
Company Housing Assistance: Many employers in Frankfurt offer relocation support, including help with finding housing.
Local Newspapers: Check the real estate sections of local newspapers like the Frankfurter Allgemeine Zeitung.

Rental Process

Application: Be prepared to provide documents such as proof of income (e.g., salary slips), a SCHUFA credit report (German credit check), and a copy of your ID or residence permit.
Deposit (Kaution): Landlords typically require a security deposit of up to three months’ rent, which is refundable at the end of the lease.
Lease Agreement: Rental contracts are usually long-term (1 year or more) and written in German. Ensure you understand the terms, including notice periods (usually 3 months).
Utilities (Nebenkosten): Additional costs for heating, water, and maintenance are often listed separately in the lease. These can add €200–€400 per month.

2. Purchasing Property in Frankfurt

Overview

Buying property in Frankfurt is a significant investment, with prices steadily increasing due to high demand. The market is competitive, and properties in prime locations are often sold quickly.

Average Purchase Costs

Apartments (per sqm): €6,000–€12,000
- Central areas like Westend and Innenstadt: €10,000–€15,000/sqm
- Suburban areas like Rödelheim or Niederrad: €6,000–€8,000/sqm
Houses: €800,000–€2,500,000, depending on size and location.

Additional Costs

When purchasing property, expect to pay additional fees amounting to 10–15% of the purchase price:

Property Transfer Tax (Grunderwerbsteuer): 6% of the purchase price
Notary Fees: 1.5–2%
Registration Fees: 0.5–1%
Real Estate Agent Commission: 3–7% (negotiable)

Buying Process

Search for Properties: Use platforms like Immobilienscout24 or consult real estate agents.
Financing: If you need a mortgage, German banks typically require a down payment of 20–30% of the property price.
Offer and Contract: Once you find a property, make an offer. A notary (Notar) is required to draft and finalize the purchase agreement.
Registration: The property must be registered in the land registry (Grundbuch), which is handled by the notary.

3. Recommended Neighborhoods in Frankfurt

Frankfurt offers a variety of neighborhoods catering to different lifestyles and budgets. Here are some popular options:

Central and Upscale Areas

Westend: Known for its luxury apartments, green spaces, and proximity to the financial district. Ideal for professionals and families.
Innenstadt: The city center, close to shopping, dining, and cultural attractions. Expect high prices and limited availability.
Sachsenhausen-Nord: A trendy area with a mix of historic charm and modern amenities. Popular among expats and young professionals.

Family-Friendly Suburbs

Bornheim: A vibrant, family-friendly neighborhood with parks, schools, and a lively market scene.
Nordend: Offers a mix of quiet residential streets and lively cafes. Great for families and young professionals.
Höchst: A more affordable option with good schools and a historic old town.

Affordable and Up-and-Coming Areas

Gallus: A developing area with new residential projects and relatively lower rents.
Fechenheim: Offers affordable housing options and a quieter lifestyle.
Niederrad: Known for its proximity to the airport and business parks, with moderate rental prices.

4. Legal and Practical Considerations

Legal Requirements for Renting

Residence Permit: Non-EU citizens must have a valid residence permit to rent or buy property.
SCHUFA Credit Report: A good SCHUFA score is often required by landlords to assess your financial reliability.
Tenant Rights: German law strongly protects tenants. For example, landlords cannot evict tenants without valid reasons, and rent increases are regulated.

Legal Requirements for Buying

Notary Involvement: All property transactions must be notarized.
Financing Approval: Ensure your mortgage is pre-approved before making an offer.
Taxes and Fees: Be aware of the additional costs associated with purchasing property.

5. Tips for Navigating the Housing Market

Start Early: The Frankfurt housing market is highly competitive, so begin your search well in advance.
Be Prepared: Have all necessary documents ready, especially for rental applications.
Consider Shared Housing: If you’re on a budget, shared apartments (Wohngemeinschaften) are a popular option.
Negotiate: While rental prices are often fixed, you may be able to negotiate terms like the deposit or lease duration.
Learn Basic German: While many landlords and agents speak English, understanding basic German can help you navigate contracts and communicate effectively.
Visit Properties in Person: Scams are common in online listings, so always visit properties before making payments.
Work with Professionals: For buying property, consult a real estate agent and a notary to ensure a smooth process.

6. Cultural Considerations

Punctuality: Be on time for property viewings, as punctuality is highly valued in Germany.
Quiet Hours: German law enforces quiet hours (Ruhezeiten), typically from 10 PM to 6 AM. Be mindful of this when choosing an apartment.
Recycling: Frankfurt has strict recycling rules. Ensure your building has proper waste separation facilities.
Unfurnished Apartments: Many rentals in Germany are unfurnished, and some may not even include kitchen appliances. Budget for furnishing your home.

By understanding the nuances of Frankfurt’s real estate market and following these tips, you’ll be well-equipped to find the right housing option for your needs. Whether renting or buying, thorough research and preparation are key to navigating this competitive market successfully.