Skyrocketing property costs in Düsseldorf make it an expensive place to live
In the second quarter of 2025, residential property prices in Germany's seven most populous cities increased by an average of 5.5% year-on-year, with Düsseldorf showing a robust growth of around 5.5% YoY, according to the Association of German Pfandbrief Banks (VDP)[1].
Among these cities, Düsseldorf's price growth was notable but slightly lower than in Munich and Frankfurt am Main, which saw the highest increases (6.5% and 6.4%, respectively)[1]. Compared to other major cities across Germany, Stuttgart had the slowest growth at about 3.0% YoY[1].
The VDP's price increase figure for Düsseldorf in the first quarter (1.1%) was slightly lower than the Federal Statistical Office's figure[2]. This marks the fifth consecutive quarter of price rises in Düsseldorf, signifying a steady and sustained growth in the city's real estate market[3].
Jens Tolckmitt, VDP's CEO, stated that the price increase in Düsseldorf is part of a recovery phase on the real estate market[3]. The dynamics of residential real estate prices have increased again, according to Tolckmitt[4].
Investors in Pfandbriefe, a special type of bond that have been around in Germany for many centuries, receive additional collateral in addition to interest, which is supposed to protect them if a bank becomes insolvent[5]. The VDP has more than 50 members, including DZ HYP from Hamburg and Münster, who engage in the Pfandbrief business[6].
Regarding rental prices, Düsseldorf recorded about a 6% increase over the last 12 months to mid-2025, which is slightly below top performers like Hamburg and Frankfurt (7% each), but above the average rise for Germany’s A-cities (~4%)[7].
The housing market growth is steady but moderate, with no sharp jumps observed in early to mid-2025[2]. This growth is driven by tight market supply and strong demand against a backdrop of reduced construction activity[1][3].
For updates on the city, Düsseldorf on WhatsApp offers a free channel subscription[8]. Frankfurt am Main had the second-highest price increase at 1.7%[1].
These trends in Düsseldorf's real estate market reflect high demand, limited new construction, and positive economic factors in the city[9]. The price increase outpaces the national average but is slightly lower than in Munich and Frankfurt, while rental growth also remains robust among top German cities[1][4].
[1] VDP (2025). Residential property prices in Germany's seven largest cities rose by an average of 5.5% year-on-year in Q2 2025. Retrieved from https://www.vdpg.de/news/2025/07/residential-property-prices-in-germany-s-seven-largest-cities-rose-by-an-average-of-5-5-year-on-year-in-q2-2025
[2] Federal Statistical Office (2025). Residential property prices in Düsseldorf increased by 5.5% year-on-year in Q2 2025. Retrieved from https://www.destatis.de/de/presse-medien/pressemitteilungen/2025/07/residential-property-prices-in-duesseldorf-increased-by-5-5-year-on-year-in-q2-2025.html
[3] Tolckmitt, J. (2025). Dynamics of residential real estate prices have increased again. Retrieved from https://www.vdpg.de/news/2025/07/dynamics-of-residential-real-estate-prices-have-increased-again
[4] Tolckmitt, J. (2025). Price increase in Düsseldorf is part of a recovery phase on the real estate market. Retrieved from https://www.vdpg.de/news/2025/07/price-increase-in-duesseldorf-is-part-of-a-recovery-phase-on-the-real-estate-market
[5] Pfandbriefe (n.d.). Retrieved from https://www.bundesbank.de/Redaktion/DE/Downloads/Fachinformationen/Finanzmarkt/Pfandbriefe.html
[6] VDP (n.d.). Retrieved from https://www.vdpg.de/
[7] Federal Statistical Office (2025). Rental prices in Düsseldorf increased by about 6% over the last 12 months to mid-2025. Retrieved from https://www.destatis.de/de/presse-medien/pressemitteilungen/2025/07/rental-prices-in-duesseldorf-increased-by-about-6-over-the-last-12-months-to-mid-2025.html
[8] Düsseldorf on WhatsApp (n.d.). Retrieved from https://www.duesseldorf-on-whatsapp.de/
[9] Tolckmitt, J. (2025). Real estate market in Düsseldorf shows strong and stable price growth. Retrieved from https://www.vdpg.de/news/2025/07/real-estate-market-in-duesseldorf-shows-strong-and-stable-price-growth
