# Stuttgart

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

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

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.

- Asking price/m² (median): €4.645 (2026-11-04)
- Gross rental yield (median): 4.7% (2026-11-04)
- Cold rent/m² (median): €18,25 (2026-11-04)
- Population: 634.000
- Automotive industry hub
- High wages for full-time employees
- Hillsides limit building land
- Demand from industry and IT professionals
- Popular Neighborhoods: Stuttgart-West, Stuttgart-Süd, Degerloch, Bad Cannstatt, Vaihingen

## 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

## Practical Tips

- Only once the Stuttgart 21 underground station is in service will the track areas become free where the city plans the Rosenstein quarter. If you count on appreciation from the project, you need a long investment horizon
- Look for good Stadtbahn (light rail) or S-Bahn connections, as the hilly terrain makes the nearest stop an important criterion for many tenants
- A renovation can support a higher rent; check beforehand which rent the Mietpreisbremse and the modernization surcharge rules allow, and weigh it against the costs

## 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.