City of Frankfurt
City overview
Frankfurt, the biggest city in the state of Hesse (Hessen), is best-known for housing the “Frankfurter Wertpapierbörse” -- the largest stock exchange in Germany (10th largest by market cap globally). With a population of more than 2.3 million, including its urban area, Frankfurt is the 5th largest city in Germany. Besides hosting the headquarters for major banks, financial institutions and multinational corporations in Germany, the city also has one of the largest commercial airports in the world. People like to call it “Mainhatten”, because the city has the largest number of skyscrapers in the EU.
Frankfurt has one of the highest densities in the region with a current population of 729,624, there has been an increase of 64,300 residents (~9%) since 2009. In 2012, Frankfurt attained the title of the highest productivity of Germany's 30 largest cities with a GDP of €84,427 Euros per employed person (in 2012).
Compared to other major German cities, Frankfurt has a considerably low unemployment rate of 5.6%. Frankfurt is also culturally and ethnically diverse, with 51.2% of the population having an immigrant background in 2015. Home to as many as 180 nationalities, Frankfurt is a very multicultural city. It has the second-largest Korean community in the whole of Europe, as well as the largest Sri Lankan Tamil community in Germany.
Real estate market trends & outlook
Recent developments, especially with Brexit day fast approaching, real estate prices in Frankfurt have shot up. Given that up to 10,000 bankers could relocate from London to Frankfurt, this will drive further demand for housing in certain prime locations, such as Spitzenlagen. In fact, there has already been a steady increase of sales inquiries from people in London. But regardless of Brexit, populations in Frankfurt are expected to increase by 70,000 to 800,000 people by 2027.
The average price for buying property in Frankfurt has increased by 10.7% in the first half of 2018 and rose to over €5,300/sqm compared to the previous year. In some of the top locations, the real estate prices can even reach up to €13,500/sqm. Single-family homes are sold on average for €776,706 (+2.3%). Meanwhile, asking rents for apartments/houses in Frankfurt rose by 3.6% to €14.55/sqm per month over the first half of 2018. In contrast, asking rents have only risen by an average of 2.5% p.a. since 2004.
Development of at least 7,000 new apartments per year are required in order to meet the demand in Frankfurt over the next few years. This target seems unattainable with the current scarcity of development sites. The lack of residential space means that further population growth will continue to determine the housing market in Frankfurt for many years to come.
We’re in partnerships with multiple property listing pages and real estate agents to help you find a home. For instance, if you’re planning to buy a property in Frankfurt, particularly new build real estate, you’ll find neubau kompass very useful to find a property!
How prices are growing in
major German cities?
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 Frankfurt, the average annual property prices per square meter has increased from €2,300 in 2008 to €5,300 in 2018. Meanwhile, the average rent prices per square meter also increased €9.75 from in 2008 to €14.55 in 2018.
About us
LoanLink24 is a German mortgage broker specialized in helping customers purchase property in Frankfurt. Above all, we help international clients get a home loan. Our experienced Frankfurt mortgage broker team provides professional advice in English. What’s more, we leverage our technology to scan the mortgage rates for 400+ regional and global German bank. We make sure you find the best deal!
Our smart online mortgage solution is available 24/7 to guide you through the German mortgage process. And you can use our mortgage calculator to see what your mortgage and monthly payments might look like. Additionally, our documents and advices are in English and is completely free of charge.
LoanLink24 is registered and controlled by the surveillance authority in Frankfurt.
Got a question or a complex situation?
Our friendly home loan experts are happy to support you in finding a mortgage in Frankfurt. Call us on 0800 05 28000 or email us at service@loanlink24.com
How it works
More information on mortgages in Germany
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Frankfurt, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, purchase fees may be up to 15% of the property’s purchase price. Similar to a downpayment, real estate purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Frankfurt, the approximate additional purchase fees are as follow:
Real estate tax: 6%
Real estate agent fees: 5.95%
Notary costs: 2%
Total costs: 13.95%
For more information in regards to the additional fees you would pay when buying a property in Frankfurt, 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:
- A German self-disclosure document.
- Proof of equity.
- Proof of income (last 3 payslips).
- 2 years of balance sheets (if self-employed).
- Property information (e.g., the extract from the land register).
- Copy of your passport, blue card, and/or visa.
- Latest tax declaration.
- Documentation of rental income.
To list all documents you may need, please find a Complete document checklist on our blog.
Presently, KFW offers good interest rates for those who are planning to live in the house themselves or who are purchasing a newly constructed house or apartment ( KFW home ownership program or KFW energy efficient construction program).
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!
property in Germany
Get the Loanlink24 guide of buying
property in Frankfurt
Buying a home is complicated and stressful - even for German native speakers. We’ve created a comprehensive and easy to understand guide to buying a property in Germany: