Düsseldorf's real estate market experiences another surge in property prices
Germany's Housing Market: A Look at the Current Trends
In Germany, the housing market is experiencing a mixed bag of trends. While apartment rental prices are seeing moderate increases, there is a strong investor interest and growing transaction volumes in residential property purchases, indicating a rise in housing market prices overall.
The city of Düsseldorf, in particular, is leading the charge with the highest growth in apartment rental prices among German cities. According to recent data, existing apartment rents in Düsseldorf have grown by approximately 5.4%, outpacing other major cities [2][4].
Nationwide, apartment rents have grown by around 3.4% year-on-year nominally (1.3% adjusted for inflation), showing a slowdown from the stronger surges seen in 2024 and early 2025. Quarter-on-quarter rental increases are more modest (0.7%), with inflation-adjusted rents slightly declining by 0.2% [2].
The increased demand from both domestic and international investors is a key factor driving residential price growth in houses and apartments [3]. This demand has resulted in a significant increase in residential property investment volumes, with transaction volumes up 26% YoY to €3.86 billion in the first half of 2025 [3].
In Düsseldorf, the strong rental price growth reflects a tight and competitive rental market. However, the office market data shows increased supply and vacancy, which may indirectly influence residential dynamics if commercial conversions or changes in demand occur [1].
Other factors influencing these trends include inflation and economic conditions, which have tempered rental growth somewhat [2]. Regional dynamics in Düsseldorf, such as robust rental demand and relatively tighter supply, are pushing rental price increases higher than the national average, especially for apartments [4].
Ongoing construction and modernization projects in and around Düsseldorf, such as office market completions, may impact residential demand indirectly, potentially affecting future price trends [1].
The average cost of an 80-square-meter apartment in the specified region of Düsseldorf is currently 380,000 euros, a 9% increase from last year. On average, used row houses in the region cost 638,000 euros, while detached single-family houses have an average cost of nearly one million euros [unspecified source].
The City of Düsseldorf has initiated an impulse program for the construction of self-occupied residential property, as reported by the LBS Price Index 2025 [LBS]. A 500,000 euro budget can buy a living space in Düsseldorf, although the specific square meterage is not provided [unspecified source].
It's worth noting that while apartment rents are rising moderately nationwide, the prices for houses have not increased as significantly as apartments. The data was provided by the LBS [unspecified source]. Many apartments in Düsseldorf come with balconies [unspecified source]. Lastly, newly built homes in the region are slightly cheaper compared to last year [unspecified source].
Investors in Germany's housing market, particularly in Düsseldorf, are showing growing interest in residential property purchases, indicating an uptrend in house prices. In Düsseldorf, the average cost of an 80-square-meter apartment is currently 380,000 euros, a 9% increase from last year. This surge in investment and rising prices is significantly more pronounced for apartments compared to houses nationwide.
