Located along the Rhine river, Cologne offers its residents beautiful cathedrals and architecture, diverse and fantastic cultural activities and internationally renowned museums. The Cologne Cathedral, UNESCO world heritage and the most visited historical monument of Germany, acts as magnet for visitors. Not only is Cologne known for being a major cultural centre, but it has also positioned itself as the centre for trade and commerce.
With a population of over 1 million, Cologne is Germany's fourth largest city and the largest city in the state of North Rhine Westphalia. A total of 17 million people live within its 100-kilometer radius, which makes it one of the largest hubs in Europe. Cologne saw a strong population increase between 2014 and 2016, mostly driven by inward migration.
Cologne is a cosmopolitan city, where around 175,000 people (which accounts for 1/5 of its total population) come from more than 180 countries to live, study and work. The strong and flourishing economy has also attracted more than 10,000 foreign companies to set up their business. They have been benefited from the optimal local conditions and are contributing to the city's rapid economic development and high employment growth.
Excess demand, driven by a growing population with an increasing purchasing power has been driving up real estate prices in this region year-on-year. Cologne's property market continues to be characterised by great shortage. Particularly, prices in popular districts such as Lindenthal, Rodenkirchen, Marienburg and Belgischen Viertel are increasing rapidly. The average asking price for condominium apartments reached €3,500/sqm in 2018, which is up by 5.8% compared to the previous year. Condominiums in the most exclusive areas can even fetch up to €10,200 Euro/sqm. A total transaction volume of around 840 million euros was achieved with apartment buildings in the past year.
The average asking rent has reached to €11.55/sqm per month, an increase of 4.1% compared to 2016. This is mainly caused by the rising demand and the under-supply of housing. The average price of a single-family home has gone up to €613,941, an increase of a staggering 9.3% compared to 2016. The most expensive properties went on sale for over €4,2 million. Although, the total number of sold condominiums and family homes slightly decreased since last year, the actual selling price went up by 7% on average.
Property prices are likely to continue to rise, given the steady demand and shortage of supply. There is a need for 6000 new apartments every year, however, only 2,400 and 4000 were completed in 2016 and 2015 respectively. Until recently, the city government has decided to change the law to encourage more residential building constructions. As a result, a number of development projects near the city centre have begun in an effort to alleviate the housing shortage problem.
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Germany's strong economic growth has resulted in price increases across German cities: On average the prices doubled in the last 10 years. Rents also follow the house price development in Germany: the average increase amounts to 50% between 2008 and 2018.
In Cologne, the average annual property prices per square meter has increased from €1,900 in 2008 to €3,500 in 2018. Meanwhile, the average rent prices per square meter also increased from €8.20 in 2008 to €11.55 in 2018.
LoanLink24 is a German mortgage broker that specializes in helping international clients in Germany get mortgage that fits their personal and financial circumstances. If you want to purchase a property in Cologne, we can guide you through every step of the process. Our highly professional mortgage broker team in Cologne provides excellent advices in English, Chinese, Russian and German. Moreover, we leverage advanced algorithm technology to find the best mortgage interest rates from over 400 regional and global German banks.
Our smart online mortgage platform is available round the clock to help you with the German mortgage process. And our mortgage calculator shows a complete picture of what your mortgage might look like. To make the process easy for non-German speakers, all resources are in English, Chinese, Russian and German. Best of all, we do not charge our customers any fees.
LoanLink24 is registered and controlled by the surveillance authority in Cologne.
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Cologne, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, real estate purchase fees may be up to 15% of the property’s purchase price. Similar to a downpayment, purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Cologne, the approximate additional purchase fees are as follow:
Real estate tax: 6.5%
Real estate agent fees: 3.57%
Notary costs: 2%
Total costs: 12.07%
For more information in regards to the additional fees you would pay when buying a property in Cologne, please check out our mortgage calculators for a more accurate calculation.
As soon as your initial mortgage expires, you have two options. On one hand, you can choose to pay off the entire mortgage at once. Otherwise, you can refinance at current market interest rates with your current bank or a new lender. In most cases, refinancing with a new lender results in better rates for you.
We can help you to identify the best refinancing deal from 400+ partner banks.
Generally, lenders require information about your personal and financial situation. Some of the documents you will need include:
To list all documents you may need, please find a Complete document checklist on our blog.
Once you decide to purchase property in Germany, contact the LoanLink24 undefined Mortgage brokers via live chat, email or phone. Whenever you have a spare minute, you can also read our German mortgage blog to learn more.
In essence, a mortgage broker is an intermediary who brokers mortgage loans on behalf of individuals. We compare the mortgage products with an algorithm that spots the best deal for you. Accordingly, you can either visit us in Berlin or Frankfurt or you can simply use our online application process. It’s all digital!