With Brexit not far away, many financial institutions have been opening offices in Frankfurt to keep a foothold in the EU. So what does that mean for the Frankfurt property market?
Frankfurt has seen a population increase of more than 10 per cent since 2012, according to a report by real estate brokerage Engel & Voelkers. Unlike most other German cities, many residential towers help create the skyline in Frankfurt, but with 1,000 new residents moving to the downtown ‘Mainhattan’ district each month since the Brexit vote, the property market is getting very competitive.
According to Handelsblatt, a leading German-language business newspaper, property prices in Frankfurt have risen by more than 10 per cent over the past year, and the boom shows no signs of abating, so overseas property investors may want to get in quick.
Fortunately, there are no restrictions against foreigners buying real estate in Frankfurt, as long as they have a German bank account, so transactions can be swift.
Properties in sought-after neighbourhoods such as the Diplomat Quarter or the park-adjacent Sachsenhausen sell for around €6,500 to €8,000 per square metre.
Though that may seem expensive, property prices are still comparatively cheap when compared to other major European cities such as Paris, or Luxembourg where bankers also seem to be escaping to.
However, if the property boom in Frankfurt continues then that price gap may considerably narrow.
The Diplomat Quarter is one of Frankfurt’s most sought-after areas. It’s defined by wide streets and well-kept villas shrouded in lots of greenery. Since consulates truly do hang their flags here, security is tight offering an added bonus for many prospective buyers.
However, you may need a top banker’s salary with typical large villas commanding prices north of £5 million.
This popular residential area seems to feature more villa-style homes than any other neighbourhood. Residents choose it for park-like gardens and proximity to the cultural centres, such as the popular Staedel Museum.
Though larger villas can still cost similar prices to the Diplomat Quarter, some smaller villas can be purchased for under £2 million, and luxury maisonettes from £1 million.
A new up and coming location is that of Europa Garden. In one of Frankfurt’s newest neighbourhoods, former freight yards were converted to high rises, parks, and shopping streets right in the city centre. A metro station is also due to be arriving soon.
These modern luxury blocks deliver privacy and security in a location that’s hard to beat. Three-bedroom apartments offer two balconies and en-suites, and unlike most German buildings, often have doormen, a high-design lounges, and interior courts. Prices for the three-bedroom apartments are around £1.25 million plus.
It seems that overseas property investors could do a lot worse than to bank on Frankfurt.