Stuttgart property prices 2019/2020

Stuttgart is the sixth largest city in Germany after Berlin, Hamburg, Munich, Cologne and Frankfurt am Main. Due to its importance as the political and economic centre of the state of Baden-Württemberg, the metropolis is considered an attractive place to live. The resulting steady population growth has led to a positive development of property prices in Stuttgart for years. 

Despite continuously rising asking prices, the city still offers good conditions for buying property. In our market report you can find out everything you need to know about current asking rents, prices for condominiums and single-family homes as well as the development of Stuttgart property prices.

Like many other metropolises in Germany, Stuttgart is experiencing continuous population growth. More than 614,000 people currently live in the city area, which represents an increase of +4.8 percent since 2013. The city is popular both as a residential and investment location, with the result that the residential property market is characterised by a demand overhang. While the sought-after hillside locations are in demand among families, many singles and couples are attracted to the residential complexes close to the city. Capital investors invest primarily in central locations because of the attractive returns and good lettability.

The unbroken high demand for residential space can also be seen from the low vacancy rate. Just 0.5 percent of the properties in Stuttgart are uninhabited. The city thus ranks alongside other sought-after metropolises such as Berlin (0.9 percent) or Hamburg (0.5 percent). 

As in many places in Germany, rents in Stuttgart have been growing continuously for years. This applies to both existing properties and new building projects. For existing properties, average asking rents rose to 13.48 euros per square metre of living space in 2019. This corresponds to a growth of +4.98 percent over the previous year. Over the past five years, rents for this type of property have actually risen by +24.13 percent.

The asking rents for new buildings also continued their upward trend last year. The square metre prices for living in a new Stuttgart building in 2019 averaged 16.86 euros. This represents an increase in rents of +5.97 percent. Calculated over a five-year period, the price increase per square metre even amounted to +21.29 percent on average.

For capital investors, condominiums represent an attractive investment, because constant income can be generated by letting. This is particularly attractive in view of the recent steady rise in rents in Stuttgart. However, property prices for condominiums in the Baden-Württemberg metropolis rose at the same time. As with rents, a distinction can be made in terms of price development between existing properties and new buildings. 

For the purchase of an existing condominium in Stuttgart, the price level in 2019 averaged 4,573 euros per square metre. As a result, prices in this sub-market recorded a further increase of +9.53 percent compared to the previous year. Over the past five years, the increase in value was +46.52 percent. 

Also in the new building sector, real estate prices for condominiums in Stuttgart have been on the rise for years. Between 2018 and 2019, the average square metre prices here rose from 6,781 euros to 7,066 euros. This represents an increase of +4.2 percent. Over the past five-year period, the increase in the price level averaged +36.20 percent. 

House prices in Stuttgart are also affected by the constant growth. The average price level for single-family homes rose by +12.7 % in 2019 compared to the first half of 2018.  House buyers thus paid 963,755 euros on average. 

Stuttgart property prices: rising prices for apartment buildings

The Stuttgart market for residential and commercial buildings and apartment blocks is very active. Transaction volumes and property prices have been rising sharply for years. The average asking price in the first half of 2019 was 3,796 euros per square metre. This means Stuttgart property prices are already at a very high level. Transaction figures, rents, prices and factors can be found in detail in our Residential and Commercial Property Market Report 2020.

It is not only the condition and type of a property that influences its price; the location of the property is also a decisive factor in determining the value of a house or condominium. A distinction is made between very good, good, mid-range and secondary locations. Experience shows that the most sought-after locations in large cities are those close to the centre.

Very good location

The same is true in Stuttgart: districts in very good locations include large parts of Kräherwald, Mönchhalde, Gänsheide, Bopser, Frauenkopf, Sonnenberg, Killesberg and Birkenäcker. In these parts of Stuttgart, property prices for single- and two-family homes range between 1.5 million euros and 4.5 million euros. Condominiums in these locations achieve top prices in Stuttgart, with average prices ranging between 5,800 euros and 13,000 euros per square metre of living space. Residential and commercial buildings are traded between 3,400 and 5,350 euros per square metre. Engel & Völkers expects that the asking prices for single- and two-family homes, for condominiums as well as those for apartment buildings and residential and commercial buildings will continue to rise. 

Good location

Other central districts in good locations are Hasenberg, Stuttgart-West, Stuttgart-Süd and parts of Stuttgart-Mitte. The other districts in good locations are spread over the outer urban areas such as Bad Cannstatt, Degerloch and Sonnenberg or parts of Untertürkheim and Möhringen. In these parts of Stuttgart, property prices for single- and two-family homes range between 800.000 million euros and 2.5 million euros. Condominiums are also at a high price level: they achieve average square metre prices between 4,500 euros and 9,000 euros. Apartment buildings/residential and commercial buildings in good locations are sold at between 2,900 and 4,450 euros per square metre.

Mid-range location

In the mid-range locations of Stuttgart, which include the districts of Stuttgart-Ost, Zuffenhausen, Münster, Wangen, Obertürkheim, Birkach, Vaihingen and parts of Möhringen, single- and two-family homes have a price range between 480,000 euros and 1.7 million euros. Asking prices for condominiums are also at a high level and range between 3,800 euros and 7,500 euros despite the mid-range location. Apartment buildings cost between 2,200 and 3,800 euros per square metre.

Secondary location

Only a few, mainly northern districts of Stuttgart are considered to be in a secondary location. These include Mühlhausen, parts of Birkenäcker and Weilimdorf. House buyers can expect prices between 380,000 euros and 1 million euros for single- and two-family homes. On average, square metre prices for condominiums range between 2,500 euros and 4,800 euros. Apartment buildings with or without commercial space cost between 2,000 and 2,850 euros.