Property prices rise in western Germany, Ruhr region gains on metropolises
After two years of stagnation or decline, property prices in western Germany are on the rise. Cities in the Ruhr area and several other regions are showing the fastest price increases.
Property asking prices in western Germany have seen a significant increase over the past year. An analysis by immowelt reveals that prices have risen in 113 out of 121 surveyed cities and districts, with some experiencing growth exceeding 10 percent. This trend is occurring despite high interest rates, though price levels have not yet returned to their 2022 peaks.
Mainz led the price surge with a 10.4 percent increase, leading to an average square meter price of 4,352 euros. Wiesbaden also recorded a substantial rise of 7.7 percent. These cities benefit from the strong Rhine-Main economic region and consistent population growth, which drives demand beyond supply.
Cities in the Ruhr region, such as Leverkusen (+9.7%), Bochum (+8.8%), and Herne (+8.8%), have also experienced notable growth. These areas, previously considered more affordable, are now emerging as attractive alternatives to pricier metropolises like Cologne and Düsseldorf. The lower starting point appears to provide room for strong recovery as prices climb.
Districts surrounding major cities, including Unna (+10.0%) and Rhein-Erft-Kreis (+9.0%) in North Rhine-Westphalia, have also seen price increases. This is attributed to their growing appeal as commuter locations.
High interest rates continue to moderate the market, and in 83 of the surveyed areas, square meter prices remain below the 2022 peak. Particularly, cities in Rhineland-Palatinate, such as Neustadt an der Weinstraße, Speyer, and Pirmasens, have experienced significant price drops over the last three years.