As an important city for media, Cologne has been a sought-after place to live for many years. “The city’s population is growing steadily and this is leading to an ever-increasing demand for exclusive homes. There is a strong excess demand on the property market,” said Florian Freytag-Gross, Managing Partner of Engel & Völkers Cologne.
Some of the most expensive residential addresses in Cologne can be found in the districts of Marienburg, Lindenthal and Rheinauhafen. Families, young couples and singles are looking for high-end freehold apartments and detached houses in these locations. In 2018, exclusive apartments here reached top prices per square metre of up to 12,000 euros (2017: 10,200 euros). In the same period, the peak sale price for detached and semi-detached houses was 4.5 million euros (2017: 4.2 million euros). Up-and-coming regions include Widdersdorf, Weiden and Sürth. Houses in these areas sold for as much as 1.8 million euros (2017: 1.5 million euros).
The property market in this city on the River Rhine is currently dominated by national buyers. Around 95 percent of those investing in residential real estate are from Germany. The majority of search clients are interested in homes for their own private residency or as a stable capital investment. “Acquiring residential property in Cologne is regarded as an attractive investment by many of our clients, who are most commonly interested in buying a property to live in themselves,” said Mr. Freytag-Gross.
Engel & Völkers anticipates that the property market will continue to see positive growth over the course of this year. “Properties in desirable locations such as the south and west of Cologne and in the city centre are witnessing ongoing price rises. Meanwhile, regions that haven’t been the focus of prospective buyers up to now are profiting from the limited availability of homes elsewhere coupled with the rise in demand,” Mr. Freytag-Gross added.
Other trends relating to purchase power and property prices in German cities can be found in the “Engel & Völkers Market Report on Residential Property in Germany 2018/2019”