Hesse

Frankfurt

Frankfurt is Germany's financial capital, home to the European Central Bank and major international banks.

Last updated: October 28, 2026
Editorially reviewed

Asking price/m² (median): €6,661
Cold rent/m² (median): €20.84
Gross rental yield (median): 3.8%; No. 8 of 10 major cities
Transfer Tax: 6.0%; in Hesse

Asking prices and rents from online listings for apartments, as of November 3, 2026. Not notarised sale prices.

Frankfurt am Main is home to the European Central Bank, the Bundesbank, and the headquarters of major commercial banks. More than 30% of residents hold a foreign nationality.

Real Estate Market Overview

The financial sector shapes demand for rental apartments in Frankfurt, in both the upper and the mid-range segment. The Grunderwerbsteuer in Hessen is 6.0%.

More than 30% of Frankfurt residents hold a foreign nationality (end of 2023)

Best Neighborhoods for Investment

Sought-after residential areas sit around the banking district and along the Main river. Other neighborhoods offer lower entry prices, and there are new-build districts.

Westend: Residential district right next to the banking quarter, with many Gründerzeit buildings
Nordend: Neighborhood with a large stock of Altbau apartments and green spaces, popular with professionals and families
Sachsenhausen: District on the south bank of the Main, known for its Apfelwein taverns and the Museumsufer; residents range from young professionals to long-term locals
Bornheim: Residential neighborhood with a busy shopping street; students and young professionals look for apartments here

Investment Process

International and institutional investors also buy in Frankfurt. Individual investors can still find suitable properties, particularly in the mid-price segment.

Step 1: Define your target segment, for example small apartments near the banking district or family apartments in residential neighborhoods
Step 2: Arrange financing with a bank that lends for investment property; buyers without residence or income in Germany may face higher equity requirements
Step 3: Work with a Makler who handles Kapitalanlage properties in Frankfurt and knows the city's international rental market
Step 4: Check the Mietvertrag, the rent compared with the Frankfurt Mietspiegel (rent index), and the room for a Mieterhöhung (rent increase). Also check the current status of the Hessian Mietpreisbremse
Step 5: Have the purchase contract notarized and budget for the 6.0% Grunderwerbsteuer plus notary and land registry fees and, where applicable, the broker's commission

Frequently Asked Questions

What is the Grunderwerbsteuer rate in Frankfurt?

Frankfurt is in the state of Hessen, which charges a Grunderwerbsteuer (property transfer tax) of 6.0%. The rate applies across the whole state. The tax is due one month after the tax assessment notice is issued (§ 15 GrEStG).

How have post-Brexit banking relocations affected Frankfurt's property market?

The financial sector shapes demand for rental apartments in Frankfurt. How much post-Brexit bank relocations have changed rents in individual neighborhoods cannot be stated in general terms. Compare the rent for the specific property with the Frankfurt Mietspiegel (rent index).

Is Frankfurt suitable for buy-to-let investors?

The international population and demand from the finance sector work in a landlord's favor. Choose a location close to the banking district or with a good S-Bahn connection. Current prices and rents are shown at the top of this page; calculate the yield for the specific property before you buy.

Rent Prices by Postal Code

All postal codes in Frankfurt

Check an apartment in Frankfurt

A city's median says little about a single apartment. Enter the address, price and rent to see cash flow, net yield and taxes.