Poor buy-to-let yields in Germany's big cities
| Last Updated: Jun. 15 2017 | |||||
| BERLIN CHARLOTTENBURG-WILMERSDORF Charlottenburg apartments |
COST (€) | YIELD (p.a.) | PRICE/SQ.M. (€) | ||
| TO BUY |
MONTHLY RENT | TO BUY | MONTHLY RENT | ||
| 50 sq. m. | 201,600 | 610 | 3.63% | 4,032 | 12.20 |
| 70 sq. m. | 323,820 | 875 | 3.24% | 4,626 | 12.50 |
| 90 sq. m. | 531,630 | 1,305 | 2.95% | 5,907 | 14.50 |
| 130 sq. m. | 723,320 | 1,508 | 2.50% | 5,564 | 11.60 |
| Grunewald apartments | |||||
| 80 sq. m. | 326,560 | n.a. | n.a. | 4,082 | n.a. |
| 120 sq. m. | 635,040 | n.a. | n.a. | 5,292 | n.a. |
| 200 sq. m. | 1,004,600 | n.a. | n.a. | 5,023 | n.a. |
| Schmargendorf apartments | |||||
| 60 sq. m. | 266,760 | 690 | 3.10% | 4,446 | 11.50 |
| 130 sq. m. | 618,280 | 1,404 | 2.72% | 4,756 | 10.80 |
| Wilmersdorf apartments | |||||
| 50 sq. m. | 200,900 | 650 | 3.88% | 4,018 | 13.00 |
| 70 sq. m. | 261,170 | 861 | 3.96% | 3,731 | 12.30 |
| 90 sq. m. | 507,960 | 1,107 | 2.62% | 5,644 | 12.30 |
| 130 sq. m. | 581,100 | 1,274 | 2.63% | 4,470 | 9.80 |
| Westend apartments | |||||
| 60 sq. m. | 253,980 | 672 | 3.18% | 4,233 | 11.20 |
| BERLIN FRIEDRICHSHAIN-KREUZBERG Friedrichshain apartments |
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| 50 sq. m. | 203,800 | 850 | 5.00% | 4,076 | 17.00 |
| 70 sq. m. | 290,220 | 959 | 3.97% | 4,146 | 13.70 |
| 90 sq. m. | 413,730 | 1,188 | 3.45% | 4,597 | 13.20 |
| 110 sq. m. | 553,300 | 1,540 | 3.34% | 5,030 | 14.00 |
| BERLIN MITTE Mitte apartments |
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| 50 sq. m. | 275,000 | 900 | 3.93% | 5,500 | 18.00 |
| 70 sq. m. | 346,430 | 1,057 | 3.66% | 4,949 | 15.10 |
| 90 sq. m. | 442,620 | 1,377 | 3.73% | 4,918 | 15.30 |
| 110 sq. m. | 557,150 | 1,430 | 3.08% | 5,065 | 13.00 |
| Moabit apartments | |||||
| 50 sq. m. | 182,400 | 550 | 3.62% | 3,648 | 11.00 |
| 70 sq. m. | 279,790 | 770 | 3.30% | 3,997 | 11.00 |
| 90 sq. m. | 343,890 | 1,080 | 3.77% | 3,821 | 12.00 |
| BERLIN PANKOW Prenzlauer Berg apartments |
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| 80 sq. m. | 212,300 | 675 | 3.82% | 4,246 | 13.50 |
| 70 sq. m. | 365,750 | 889 | 2.92% | 5,225 | 12.70 |
| 90 sq. m. | 493,560 | 1,188 | 2.89% | 5,484 | 13.20 |
| BERLIN STEGLITZ-ZEHLENDORF Steglitz apartments |
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| 50 sq. m. | 182,400 | 540 | 3.55% | 3,648 | 10.80 |
| 70 sq. m. | 249,900 | 721 | 3.46% | 3,570 | 10.30 |
| 90 sq. m. | 344,070 | 990 | 3.45% | 3,823 | 11.00 |
| Zehlendorf apartments | |||||
| 90 sq. m. | 176,890 | 756 | 5.13% | 2,527 | 10.80 |
| 90 sq. m. | 318,240 | 1,008 | 3.80% | 3,536 | 11.20 |
| MUNICH Alstadt-Lehel apartments |
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| 100 sq. m. | 621,800 | 2,270 | 4.38% | 6,218 | 22.70 |
| Bogenhausen apartments | |||||
| 50 sq. m. | 325,450 | 1,395 | 5.14% | 6,509 | 27.90 |
| 70 sq. m. | 495,810 | 1,414 | 3.42% | 7,083 | 20.20 |
| 90 sq. m. | 675,900 | 1,773 | 3.15% | 7,510 | 19.70 |
| Schwabing - West apartments | |||||
| 90 sq. m. | 244,920 | 1,032 | 5.06% | 8,164 | 34.40 |
| 50 sq. m. | 385,000 | 1,440 | 4.49% | 7,700 | 28.80 |
| 70 sq. m. | 529,130 | 1,701 | 3.86% | 7,559 | 24.30 |
| 90 sq. m. | 745,200 | 2,259 | 3.64% | 8,280 | 25.10 |
| Schwabing - Freimann apartments | |||||
| 40 sq. m. | 337,720 | 1,148 | 4.08% | 8,443 | 28.70 |
| 80 sq. m. | 610,960 | 1,808 | 3.55% | 7,637 | 22.60 |
| 120 sq. m. | 1,015,320 | 2,496 | 2.95% | 8,461 | 20.80 |
| Neuhasen - Nymphenburg apartments | |||||
| 80 sq. m. | 447,400 | 1,270 | 3.41% | 8,948 | 25.40 |
| 70 sq. m. | 571,620 | 1,407 | 2.95% | 8,166 | 20.10 |
| 90 sq. m. | 731,250 | 1,746 | 2.87% | 8,125 | 19.40 |
| Maxvordstadt apartments | |||||
| 60 sq. m. | 568,020 | 1,602 | 3.38% | 9,467 | 26.70 |
| 100 sq. m. | 843,800 | 2,370 | 3.37% | 8,438 | 23.70 |
| FRANKFURT Bockenheim apartments |
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| 80 sq. m. | 413,760 | 1,088 | 3.16% | 5,172 | 13.60 |
| 100 sq. m. | 550,400 | 1,600 | 3.49% | 5,504 | 16.00 |
| Bornheim apartments | |||||
| 60 sq. m. | 370,860 | 870 | 2.82% | 6,181 | 14.50 |
| 100 sq. m. | 579,000 | 1,290 | 2.67% | 5,790 | 12.90 |
| Westend -Sud apartments | |||||
| 60 sq. m. | 323,400 | 1,386 | 5.14% | 5,390 | 23.10 |
| 100 sq. m. | 594,000 | 2,150 | 4.34% | 5,940 | 21.50 |
| Sachsenhausen apartments | |||||
| 60 sq. m. | 382,560 | 900 | 2.82% | 6,376 | 15.00 |
| 100 sq. m. | 544,700 | 1,430 | 3.15% | 5,447 | 14.30 |
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All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. Source: IMMOWELT Definitions: Data FAQ See also: Update Schedule |
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Prices of houses and apartments in Germany continue to rise at a rapid rate.
Munich is Germany´s high-cost leader, with prices per square metre (sq. m.) from €6,000 to €10,000. The purchase price of apartments in Munich´s prime residential districts is around €7,800 euros per sq. m.
Berlin is becoming increasingly expensive, with a price range of between €3,000 to €6,000, depending on locality.
Frankfurt is now about as expensive as Berlin.
How much will you earn from a buy-to-let apartment?
- In Munich a 120 sq. m. apartment can rent for around 2,250 euros a month, earning the buy-to-let investor a rental yield of 3.5%.
- If you buy to let in Berlin, a 120 sq. m. apartment can rent for around 1,500 euros a month, earning a rental yield of 3.5%
- If you buy to let in Frankfurt, a 120 sq. m. apartment can rent for around 1,700 euros a month, earning a rental yield of 3.7%.
Rental yields on investment properties in Berlin, Munich and Frankfurt are not very good, especially as the yields figures we give are gross, not net.
However our view is that investment properties in Berlin will continue to rise in value, given the extraordinary and continuing attention that Berlin is receiving as a property investment destination.
These are extremely rough approximations; the table gives more accurate figures.
These are not high yields.
Wherever you buy, you are unlikely to have much problem letting your apartment. Especially at the lower end there is an acute shortage of affordable apartments as the German boom continues, sucking in workers from all over Europe.
Round trip transaction costs are moderate to high in Germany. See our Germany transaction costs analysis and our Residential property transaction costs in Germany compared to other countries.