Essen is the fourth largest city in the North Rhine-Westphalia state. With a population of 593,085 as of 2018, it is known as the city of culture and the European green capital. Formerly a coal and steel center, the city has attracted workers from everywhere throughout the nation. Moreover, Essen was recognized as the energy capital of Germany with E.ON and RWE, the largest energy providers, both headquartered in the city.
South Essen has presence of several national and international firms, whereas, East Essen is appropriate for those in search of neighbouring local areas having economical living space including both independent units and apartments.
The transformation of Essen into an international hub is well-reflected with the construction work of the largest urban development project, Essen 51 quarter in 2018. Investments by global firms have supported the city’s solid real estate development. Moreover, an average of 1,186 residential units were completed in 2017, nearly twice the number of units in 2016.
The residential investment market in Essen witnessed a turnover volume of €299 million with more than 400 properties sold in 2017. Rent prices in Essen haven't witnessed a drastic change in the last few years. Cold rent for new buildings was priced at an average of €10.78/sqm in 2018. Land used for residential buildings in Essen was priced between €600/sqm to €800/sqm in 2018, which was comparatively lower than cities such as Hanover, Leipzig, and Nuremberg. The maximum price for rental apartment buildings in prime locations such as Rüttenscheid district was valued at €1,500/sqm in 2018, indicating a steady growth in the residential market.
One of the factors for future growth in real estate is the location, as Essen is situated in the Ruhr area, one of the most productive regions of Germany. With the presence of several international firms, the city has numerous opportunities for locales as well as expats. However, a stagnant population growth with almost 37% of the population aged above 60 has led to a moderate growth in new building completions not affecting rent prices significantly. However, solid economic advancements in Essen with an expansion in gross domestic product that amounted to roughly €24.2 billion in 2016 has placed Essen as an economic center in Germany. Moreover, increase in working population by 8.5% in 2016 has helped Essen maintain its spot as the largest labour market location in the Ruhr area.
Germany's strong economic growth has resulted in price increases across German cities. On average the prices doubled in the last 10 years. Residential real estate investment in Germany accounted to €14.8 billion in 2017, as compared to €13.7 billion in 2016.
In Essen, average annual rent prices increased from €6,600 in 2011 to €7,440 in 2017, an increase of €840 annually in a time frame of six years.
The below figure depicts the ratio between the income and rent in 2018. For instance, in Essen, housing was cheaper as compared to other German cities as average monthly rent that an individual paid was approximately €590 with an average monthly salary of €4,633. This led to a housing cost share of only 13% of the average income for professionals.
LoanLink24 is a German mortgage broker specialized in the Essen real estate market. We also help expats and foreign investors get a mortgage. Our highly professional Essen mortgage broker team provides excellent advice in English and German. Moreover, we leveraged 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 advise you throughout the German mortgage process. For instance, you can use our home loan calculator to check your loan amount and monthly repayments. What’s more, our service is in English and is completely free of charge.
LoanLink24 is registered and controlled by the surveillance authority in Essen.
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Essen, you always have to pay for additional fees, such as real estate tax, real estate agents fees, notary costs etc. In Germany, real estate purchase fees may be up to 15% of the property’s purchase price. Similar to a down payment, purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Essen, the approximate additional purchase fees are as follows:
Real estate tax: 6.50%
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 Essen, please check out our mortgage calculator for a more accurate calculation.
First, the exact amount of your deposit depends on if you live and work in Germany.
I live and work in Germany:
You can borrow up to 100% of the property price. Overall, your deposit should cover the purchase fees, which will depend on the property’s location in Germany. Usually purchase fees are between 5-15% of the property price. Such fees include: stamp duty, notary fees and real estate agent tax.
I do not work in Germany:
Generally, you can borrow up to 60% of the property price. So, your deposit should cover 40% of the property purchase price as well as the purchase fees (5-15% of property price). As shown above, these fees include stamp duty, notary fees and real estate agent tax.
LoanLink24’s mortgage affordability calculator is tailored to buyers of different residency status to work out how much house they can afford in Berlin. By simply inputting a few numbers, you will find out your maximum affordability within seconds.
Altogether, the timeline depends on you. If you have all relevant documents ready the process can take only a few days. In case you want to be covered as fast as possible, please let us know. We have direct relationships to the credit departments of our partner banks and can accelerate the process.
As soon as you decide to buy, there are several good resources for locating a property in Germany. A few of the most common resources are the major residential real estate pages like immobilienscout24.de or immowelt.de.
Additionally, you can approach local real estate agents or the construction company. Also, please approach us. We have partners in Frankfurt, Berlin, Munich, Hamburg or Stuttgart who are ready to help.