Price decline halted - Düsseldorf's real estate market recovers

After property prices in Düsseldorf fell sharply last year, there are now signs of stabilization. At the same time, the number of transactions is rising again significantly - both for apartments and houses. But what price level is the market currently at?

There is noticeably more movement on the Düsseldorf real estate market again. While there was a historic slump in 2023, significantly more residential properties were sold in 2024. Total turnover climbed by 69% to €3.4 billion, while the number of sales rose by 29% to over 4,000. Nevertheless, market activity remains below previous highs: a few years ago, turnover was still over six billion euros with more than 5,000 transactions.

The sharp decline was due in particular to increased interest rates and higher construction costs. However, according to Thomas Weindel, Chairman of the Expert Committee for Property Values in Düsseldorf, there is a noticeable recovery in the market. However, the new-build sector remains an exception: despite already low sales figures in 2023, the number of new-build apartments sold in 2024 fell again to just 76 units.

The state authority has also fulfilled its statutory mandate for 2024 and analyzed the land and property market. Its report is based on the prices actually agreed in purchase contracts. A look at the average values from the previous year shows The price decline has stopped. However, whether this means that prices have bottomed out will only become clear in the coming months or years.

In particular, apartments in post-war buildings (older than ten years) remain in demand, with 2707 sold last year. The average price per square meter was 4350 euros - only 0.7 percent below the previous year's level. Weindel refers to this as a sideways movement. By comparison, prices reached a record high of around 5200 euros per square meter in the first half of 2022 before falling significantly.

Prices for older apartments (pre-war buildings) also remained stable and averaged 5000 euros per square meter. In 2022, prices here were still €6,000 per square meter. By contrast, prices for investment properties such as apartment buildings continued to fall: After a drop of 15 percent in 2023, prices have now fallen again by five percent to below 2200 euros per square meter.

Prices for new-build apartments are difficult to estimate, as only a limited database is available due to the low sales figures. In good to very good locations, prices per square meter vary between €6,000 and over €14,000.

The decline in house prices has also slowed. Terraced houses recorded a slight decline of two percent to around 4250 euros per square meter. The price of single-family homes fell by just one percent to around 5,500 euros per square meter.

The standard property values published by the expert committee show largely stable or slightly lower values depending on the location and district. In "simple locations" such as Garath, Rath, Reisholz and Lierenfeld, prices for condominiums range between 2600 and 4400 euros per square meter, while single-family homes cost between 4400 and 5600 euros.

In medium to good locations such as Wittlaer, Grafenberg and Unterbach, prices for single-family homes are between 5500 and 8000 euros, while apartments in areas such as Benrath and Flingern reach prices per square meter of between 3700 and 5700 euros. In high-quality locations such as the Zooviertel and Niederkassel, single-family homes cost between €8800 and €14,000, while apartments in sought-after districts such as the Altstadt or Oberkassel are priced between €5700 and €10,000 per square meter.

The standard land values were also redefined, with a particular focus on the city centre. The top value on Königsallee including Kö-Bogen I remains unchanged at 55,000 euros per square meter. In Schadowstraße including Kö-Bogen II, however, the value fell to 32,000 euros per square meter - two years ago it was 40,000 euros.

Source: Rheinische Post, 20.02.2025