Düsseldorf: High transaction volume reflects strong surplus demand

Düsseldorf is currently the seventh largest city in the Federal Republic of Germany, with a population of approximately 620,000. It is the capital of the German state of North Rhine-Westphalia, and enjoys great popularity as an international trade fair city, a centre of business and media, and home to a number of major corporations. The demand for real estate in Düsseldorf has remained high for many years. In 2021, there was a slight rise in the number of transactions in the segment for freehold apartments (+5.1 percent), with a significant increase in transaction volume (+12 percent) over the previous year. “Last year, the transaction volume in Düsseldorf for freehold apartments alone was approximately 1.39 billion euros,” says Birgit Pfeiffer, Managing Director of Engel & Völkers Immobilien Deutschland GmbH, who adds: “This reflects the strong level of demand on the Düsseldorf real estate market.”

Apartments: Strongest price growth in ranking of all Top 7 cities in Germany:
The average asking price for freehold apartments across the city was 5,804 square metres in Q1 2022, which marks a year-on-year rise of 15.5 percent. This figure means that the average price in this segment has risen more sharply in Düsseldorf than in any other of Germany’s Top 7 cities with an average nationwide increase of 10.5 per cent. One of the most sought-after addresses for freehold apartments in Düsseldorf is Oberkassel. Here, the average asking price was 8,016 euros per square metre, followed by Düsseltal at 7,312 euros per square metre on average. Absolutely exceptional properties reached prices per square metre of 8,000 euros and up to 12,000 euros in premium locations.

An average of 8,156 euros per square metre was paid for new-build apartments throughout Düsseldorf in Q1 2022, which corresponds to an 8.3 percent growth over the same period last year. Higher construction costs have meant that numerous new-build projects could only be realised with a delay. “There have been delays in new construction projects due to the considerable rise in raw material and energy costs,” says Birgit Pfeiffer.

Houses: Average prices in Meerbusch exceed prices in inner-city locations:
Even though the number of transactions for detached and semi-detached houses fell slightly in 2021 (-3.9 percent), the transaction volume in this segment rose to 506 million euros (+0.4 percent). Detached and semi-detached houses were offered for sale for approximately 850,000 euros on average in the first quarter of 2022. In especially sought-after locations such as Düsseltal, Oberkassel and Wittlaer, prices ranged from 2.5 to 4.5 million euros.

In the district of Meerbusch, which borders Düsseldorf’s urban centre, the average price for detached and semi-detached houses in the first quarter of 2022 was around 860,000 euros, which is above average for prices within Düsseldorf itself. Particularly exclusive properties changed hands here for 2.5 to 4 million euros. “The high quality of life and the proximity to the city centre are the main factors that make Meerbusch attractive for many property buyers. Something that is reflected in the prices in this locality,” says Birgit Pfeiffer. At the same time, prices for detached and semi-detached houses were still more moderate in the surrounding towns such as Ratingen (approx. 685,000 euros), Mettmann (approx. 625,000 euros) and the neighbouring city of Neuss (approx. 620,000 euros).

Outlook - Moderate price rises expected for 2022:
The dynamic development of residential prices reflects Düsseldorf’s continuing appeal as a residential and investment location. Based on the significant price development in the previous year, the real estate experts at Engel & Völkers forecast further price rises over the course of the current year, although these will be more moderate. Houses and mansions in areas surrounding Düsseldorf, such as Ratingen and Mettmann, hold great potential for appreciation in value and are particularly sought-after as locations for families to set up home.