Top prices for luxury mansions in natural surroundings
The most exclusive residential addresses in Frankfurt include the districts known as Diplomatenviertel, Holzhausen and Westend-Nord. In the segment for detached and semi-detached houses, sales prices peaked in 2018 at 10 million euros (2017: 9 million euros). “Detached residences with expansive plots and excellent transport links are most likely to command such prices in the premium locations,” said Mr. Schmitt. In the same period, freehold apartments reached prices per square metre of up to 15,000 euros (2017: 14,800 euros).
National buyers dominate the market
Thanks to its good infrastructure, attractive jobs and a wide range of educational opportunities, the city of Frankfurt is a sought-after investment location for real estate. Both national and international buyers are active in the premium segment. Around 75 percent of the search clients are German nationals. In addition to wealthy older couples and young professionals, foreign investors are also increasingly attracted to Frankfurt. The residential real estate market is becoming more and more appealing to buyers from abroad, which is leading to a rise in demand for real estate as a capital investment.
Outlook on Frankfurt’s real estate market: Apartments as investment properties
Engel & Völkers anticipates further price rises in almost all locations and segments in 2019. “We are seeing the trend of building new premium residential towers in the city centre continue. Exclusive apartments are taking shape here that are very interesting for many buyers. These residential towers may ease the property market in premium locations in the long term,” said Mr. Schmitt.
Other trends relating to purchase power and property prices can be found in the
„Engel & Völkers Market Report on Residential Property in Germany 2018/2019“