# Frankfurt

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

Canonical: https://www.investbud.de/en/cities/frankfurt
Last updated: 2026-10-28

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.

- Asking price/m² (median): €6.650 (2026-11-04)
- Gross rental yield (median): 3.7% (2026-11-04)
- Cold rent/m² (median): €20,63 (2026-11-04)
- Population: 753.000
- Germany's financial center
- Large share of international residents
- Home to the European Central Bank and the Bundesbank
- Grunderwerbsteuer in Hessen: 6.0%
- Popular Neighborhoods: Westend, Nordend, Sachsenhausen, Bornheim, Bockenheim

## 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

## Practical Tips

- If you plan to let furnished or to companies for their staff, find out first which tenancy rules apply to that type of contract
- New-build apartments in the Europaviertel are an alternative to Altbau in Westend; compare purchase price and achievable rent per square meter in both areas before you count on appreciation
- For families with children at international schools, the school run matters; check which schools are easy to reach from the apartment

## 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.