Demand for premium living space in Stuttgart remains high. Due to the very limited availability of properties, prices have risen by around 5 percent over the past twelve months. “Due the low level of interest rates and the lack of investment alternatives, buying real estate in Stuttgart remains an attractive and secure investment,” said Stephan-Andreas Philipp, Managing Partner of Engel & Völkers in Stuttgart.
Residential property prices in Stuttgart continue to rise
Wanted: Freehold apartments upwards of 140 square metres in size
Top addresses in Stuttgart include the elevated areas that make up the “Killesberg” district, which attract buyers for their tranquillity and views overlooking the city. Here exclusive properties with large plots are particularly popular among families and young couples, as are freehold apartments spanning approximately 140 square metres or more with upscale furnishings. In 2018, the top price for detached houses rose over the previous year to 6 million euros (2017: 4.5 million euros). In the same period, premium properties in top locations reached average prices per square metre of up to 10,000 euros. In isolated cases, even higher prices were paid for very exclusive apartments, with highest valuations of up to 17,000 euros per square metre (2017: 15,000 euros). These transactions do not reflect trends on the market as a whole.
A very good location in Stuttgart is the sought-after district on the Bopser mountain, known for its quiet surroundings and upmarket homes. In 2018, average prices for houses in this area were 5.5 million euros (2017: 4.5 million euros). In the same period, prices for freehold apartments reached as much as 13,000 euros per square metre (2017: 9,000 euros). “Detached residences with expansive grounds will remain a rare commodity in the future. This is why buyers continue to pay exceptional prices for these top properties,” said Stephan-Andreas Philipp.
National buyers dominate the property market
Stuttgart is one of the most economically strong metropolitan regions in Germany. The demand for residential real estate is commensurately high, while availability remains limited. The majority of prospective buyers are looking for properties for their own personal occupancy. In 2018, the proportion of national clients in Stuttgart was around 85 percent. There is also interest from foreign buyers, due to a number of large corporations based in and around Stuttgart including Daimler, Porsche and Bosch. The largest group of international buyers are Chinese citizens, followed by clients from France and Switzerland.
Outlook: Upward trend is expected to continue
Engel & Völkers Stuttgart forecasts stable to slightly rising prices in almost all locations and segments for the rest of the year. “The high demand for premium properties will continue. New construction developments such as ‘Villa Berg’, ‘Europaviertel’ and ‘Mayliving’ are likely to lead to a temporary easing of Stuttgart’s residential property market,” said Stephan-Andreas Philipp.
Other trends relating to purchase power and property prices in German cities can be found (in German) in the Engel & Völkers Market Report on Residential Property in Germany 2018/2019.