Baden-Württemberg

Stuttgart

Stuttgart is the capital of Baden-Württemberg and home to Mercedes-Benz and Porsche headquarters.

Last updated: October 28, 2026
Editorially reviewed

Asking price/m² (median): €4,633
Cold rent/m² (median): €18.02
Gross rental yield (median): 4.7%; No. 2 of 10 major cities
Transfer Tax: 5.0%; in Baden-Württemberg

Asking prices and rents from online listings for apartments, as of November 2, 2026. Not notarised sale prices.

Stuttgart is the state capital of Baden-Württemberg. Median gross wages for full-time employees are among the highest in Germany, the Grunderwerbsteuer is 5.0%, and the basin location of the city center leaves little room for new residential areas.

Real Estate Market Overview

Geography and industry shape Stuttgart's housing market. The city center sits in a basin surrounded by hillsides, woods, and vineyards, which limits the land available for new housing. Renters include employees of carmakers and their suppliers, mechanical engineering firms, and IT companies. The Grunderwerbsteuer in Baden-Württemberg is 5.0%. Besides mobility, the city lists aerospace, engineering, finance, information technology, media and the creative industries as its top industries.

The basin and the hillsides leave few large sites for new development within the city
In 2025, Stuttgart ranked fourth among all German districts and independent cities for median gross pay of full-time employees
At 5.0%, Baden-Württemberg's Grunderwerbsteuer is lower than in NRW (6.5%) and Hessen (6.0%)

Best Neighborhoods for Investment

Stuttgart's neighborhoods sit partly in the valley and partly on the heights. Central locations and hillside locations with views over the basin are in demand.

Stuttgart-West: Densely built inner-city district, in demand among professionals
Stuttgart-Süd: Inner-city district with Altbau housing and good public transport, popular with young professionals and families
Degerloch: Elevated district with green spaces and woodland, popular with families
Bad Cannstatt: Stuttgart's most populous district, with a mixed housing stock and an S-Bahn connection
Vaihingen: Home to the University of Stuttgart's Vaihingen campus; students and university staff look for apartments nearby

Investment Process

On Stuttgart's housing market, buyers who plan to live in the property compete with investors.

Step 1: Research the micro-location carefully, as the hilly terrain means neighboring streets can differ a lot, for example in gradient, noise, and transport links
Step 2: Arrange financing through a local Volksbank, Sparkasse, or national bank
Step 3: Engage a Makler who knows Stuttgart's neighborhoods and their tenant profiles
Step 4: Check the condition of the building; for older houses on slopes, a building surveyor can assess structural issues. Check whether the Mietpreisbremse applies to your location; the current state ordinance runs until 31 December 2026, and the state plans to extend it
Step 5: Budget for the 5.0% Grunderwerbsteuer plus notary and land registry fees and, where applicable, the broker's commission

Frequently Asked Questions

What is the Grunderwerbsteuer rate in Stuttgart?

Stuttgart is in Baden-Württemberg, which charges a Grunderwerbsteuer (property transfer tax) of 5.0%. This is lower than in NRW (6.5%) or Hessen (6.0%). Notary and land registry fees and, where applicable, a broker's commission come on top.

How does the automotive industry affect Stuttgart's property market?

The city counts mobility among its top industries. Employees of carmakers and their suppliers look for housing in the region. Check how much demand in your target area depends on individual employers.

Is Stuttgart's limited supply a benefit or risk for investors?

For owners, scarce building land is mostly an advantage, because little new supply comes onto the market. It does not protect against falling demand: if industrial jobs disappear, vacancies and falling prices can occur even in a tight market.

Rent Prices by Postal Code

All postal codes in Stuttgart

Check an apartment in Stuttgart

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