German Real Estate Broker in Dusseldorf Forecasts Rising Rents Alongside Steady Property Values
Düsseldorf, Germany - Düsseldorf's real estate market is experiencing a significant shift, with housing prices and rents on the rise. The city is grappling with a housing shortage, prompting local authorities to invest more in social housing as a solution.
According to the Ring of German Brokers (RDM) real estate price index for Düsseldorf, the cold rent for existing apartments in prime locations is currently around 18 euros per square meter of living space, marking a six percent increase from the previous year. This trend is reflected in the overall real estate prices, with a 5.5% year-on-year growth in the city's metro area in the second quarter of 2025.
The vibrant demand for housing is compounded by a significant slowdown in construction activity. New building projects have decreased by 85% since late 2022, leading to a shrinking supply of new housing. This constrained supply is driving the price and rent increases, though growth rates appear to be stabilizing.
In an effort to address the housing shortage, the federal government has announced a three-pronged approach to boost housing construction in Düsseldorf. This includes simplified building, faster approvals, and more supporting funds. However, it will likely take some time for these measures to be implemented and take effect.
The decline in construction activity is not unique to Düsseldorf. According to data from the IT.NRW statistics agency, the lowest number of approved housing units in Düsseldorf was recorded in 2012, with 39,989 units. The number of building permits for apartments decreased by 7% in 2024, marking the fourth consecutive year of decline.
Despite these challenges, rents in Düsseldorf's prime locations are expected to continue rising due to sustained high demand. For existing apartments in comparable locations, around 5,000 euros per square meter of living space is currently being paid, an increase of four percent. The price for a detached single-family house in good locations in Düsseldorf is around 880,000 euros, a one percent increase from the previous year.
The rise in real estate prices is particularly noticeable in energetically well-equipped apartments and houses in good locations. The RDM real estate price index 2025 has analysed the price and rent developments in Düsseldorf and some surrounding cities over the past twelve months.
However, external factors such as US trade policy, a possible recession, and inflation could lead to rising interest rates, affecting the future development of real estate prices and rents in Düsseldorf. It is crucial for local authorities to continue addressing the housing shortage and balancing demand and supply through strategies such as promoting affordable and social housing projects, streamlining building permits, and utilising urban redevelopment and densification strategies.
In summary, Düsseldorf's real estate market is currently experiencing a tight housing market with moderate real estate price and rent increases driven by supply shortages, compounded by slowed construction. The federal government's initiatives aim to address these issues, but it will take time for their effects to be felt.
Investing in real-estate in Düsseldorf could potentially yield profits due to the rising housing prices and rents, but the slowed construction activity might pose a challenge to meeting demand. To mitigate this issue, local authorities are considering investing more in social housing projects as part of their approach to boost housing construction.
As the housing shortage persists, the federal government's strategies, such as simplified building, faster approvals, and more supporting funds, aim to stimulate financing for new building projects, thereby addressing the real-estate market's investment opportunities in the city.
