The 11th survey on new-build condominiums in Frankfurt am Main diagnosed serious price hikes – and this in peripheral locations. The average price has gone up to 8,100 euros per square metre. New-build flats close to the town centre have become sheer luxury products.

Large-scale projects, especially tower blocks, continue to define Frankfurt’s market for new-build condominiums. On average, the price has climbed to c. 8,100 euros/sqm lately, which puts it roughly 12.5 % above the prior-year level. This is the up-shot of the 11th Condominium Survey for Frankfurt am Main, for which we analysed 51 construction projects delivering a total of 3,657 condominiums.

In recent years, building activities in the condominium segment clearly concentrated on the inner-city districts. Residential tower blocks in particular have been driving up prices. As a result, new-build condominiums in downtown areas have evolved into sheer luxury products, regardless of fit-out and structural quality. Selling prices here average 8,750 euros/sqm. It is quite common for high-rise flats to be offered at prices upward of 10,000 euros/sqm because of the special marketing possibilities associable with them, such as view, exclusivity and white-glove amenities.

Unlike previous years, the trend toward ever larger property developments has slowly begun to reverse itself. This is explained not by any lack of big-ticket projects but primarily by the increased number or very small undertakings. One needs to remember that the number of large plots of land is limited, and that even the smallest gap site will be considered for development. And of course, the demand for high-rise flats that are costly to build and therefore expensive to buy is negligible on the city’s outskirts.

In areas beyond the town centre, smaller property developments dominate the market – with the notable exception of the Henninger Turm high-rise. The market for average dwelling sizes manifests a clear trend toward smaller residential units, especially in central locations.

5-Year Trend

Average new-build condominium prices showed a brisk performance during the past five years. Across the city, average prices rose by around 65 % since 2015 (or 13 % annually). The fastest growth rates were registered in the western and eastern submarkets at 74 % and almost 80 %, respectively. Lately, prices in excess of 6,000 euros/sqm have been quoted even in peripheral districts. The steepest price growth rates are reported from the western part of the city. Even in districts where demand used to be slow, such as Höchst, Nied and Unterliederbach, new-build condominiums are selling for prices well above 5,000 euros/sqm.

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Contact person: Florian Wenner, Principal Investigator Residential for Rhine-Main at bulwiengesa, wenner [at] bulwiengesa.de