The 15 best cities to buy rental property in Germany in 2021

The 15 best cities to buy rental property in Germany in 2021


The German real estate market and residential real estate in particular is still high in demand among local and overseas buyers. We are now in the 10 th year of strong performance in the German real estate market.


The question I frequently get asked, what are the best markets to buy property in Germany. This is not a simple question. It always depends on your very own situation and personal preferences. Germany is a big country with many unique opportunities in the real estate market. Hence it is important for you to write down your very own requirements and goals that you hope to achieve with your purchase in the German property market.


Since we have a good mix of readers of overseas buyers and expats living in Germany I thought to write about a systematic approach to find cities with a good outlook for real estate.


Now for those who don’t know Bulwiengesa, Bulwiengesa is an incredible data provider in the German real estate market. I can highly recommend everyone to read their publications. They provide enough data sets that are objective and rich in information.


In 2019 Bulwiengesa published a report called “ Die 5%-Studie” which you can access here:


https://www.bulwiengesa.de/de/studien/die-5-studie-2019-wo-investieren-sich-noch-lohnt-0


Now since 2019 and 2020 rental yields have compressed even further, you will be still able to find deals with rental yields mentioned in the Bulwiengesa Report.


So with the intelligence of the report you have have a starting point to filter for those cities that are more or less in line with your own rental yield target.


After you have filtered through the report I would create a list of 10 cities that meet your rental yield target and are in proximity (50-100km) to one of the big 7 cities: Berlin, Frankfurt, Stuttgart, Cologne, Düsseldorf, Hamburg and Munich.


Once you have the list ready, you can start to search for real estate offers online or contact local agents to send you properties that are within your budget.


My personal favourite 15 cities to buy rental property in Germany in 2021:


Baden-Wuerttemberg

Böblingen

Ebersberg


Hessia

Idstein

Bad Soden

Hanau


North Rhine-Westphalia

Kaarst

Bad Honnef


Rhineland-Palatinate

Ingelheim


Sachsia

Machern


Thuringia

Erfurt


Lower Saxony

Rosengarten


Bavaria

Oberhaching

Pullach in Isartal


Brandenburg

Teltow



Appendix:



Bulwiengesa AG has divided the German property market into 4 classes according to functional importance for the international, national, regional or local real estate market.


Classification of the German real estate market by Bulwiengesa


A cities

Most important German centers with national and pinternational importance.


B cities

Big cities of national and regional importance


C cities

Important German cities with regional and limited national importance, with an important impact on the surrounding regions.


D cities

small, regionally focused locations with a central function for their immediate surroundings; low market volume and low sales volume


Examples of A, B, C and D cities in Germany


A cities

Berlin, Frankfurt, Düsseldorf, Stuttgart, Munich, Cologne and Hamburg


B cities

Bochum, Bonn, Bremen, Dortmund, Dresden, Duisburg, Essen, Hannover, Karslruhe, Leipzig, Mannheim, Münster, Nürnberg,Wiesbaden


C cities

Aachen, Augsburg, Bielefeld, Braunschweig, Darmstadt, Erfurt Erlangen, Freiburg, Heidelberg


D cities

Leverkusen, Neuss, Moers, Trier, Suhl, Pforzheim, Schweinfurt, Siegen, Sollingen, Passau, Oberhausen, Recklinghausen, Marburg



Considerstions before buying German real estate
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