Capital: Stuttgart
Baden-Württemberg
Baden-Württemberg is a wealthy southern German state known for its strong automotive industry and high quality of life.
- Last updated:
- Editorially reviewed
- Transfer Tax
- 5.0%
- €15,000 on €300,000
- Asking price/m² (median)
- €3,836
- Cold rent/m² (median)
- €13.40
- Gross rental yield (median)
- 4.2%
- No. 4 of 16 states
Asking prices and rents from online listings for apartments, as of November 5, 2026. Not notarised sale prices.
Baden-Württemberg has the third-largest economy of the German states after North Rhine-Westphalia and Bavaria, with a GDP of 667 billion euros in 2025. About 11.2 million people lived here at the end of 2025. When you buy, you pay 5.0% property transfer tax. You can see purchase prices, rents and gross yield for Baden-Württemberg in the live figures at the top of this page.
Real Estate Market
Many jobs in the state depend on engineering, technology and manufacturing; in September 2026 the unemployment rate of 4.7% was the second lowest of the German states, after Bavaria. Towns around Stuttgart, Karlsruhe and Freiburg are often connected by S-Bahn or regional train.
- In Stuttgart, the valley basin and its slopes limit the land available for building
Transfer Tax Details
Baden-Württemberg levies a Grunderwerbsteuer (property transfer tax) of 5.0%. Only Bavaria charges less, at 3.5%; Lower Saxony, Rhineland-Palatinate, Saxony-Anhalt and Thuringia also charge 5.0%. On a 300,000 euro purchase, that is 15,000 euros in transfer tax. On top come notary and land registry fees of about 1 to 1.5% of the price and, where applicable, a broker's commission. Include all of these costs in your yield calculation.
Investment Cities
The larger cities in Baden-Württemberg differ in price level, employers and tenants.
- Stuttgart: The state capital; median full-time wages in 2025 ranked fourth among all German districts
- Karlsruhe: Home of the Karlsruhe Institute of Technology (KIT), with many students
- Freiburg: A university city near the French and Swiss borders
- Heidelberg: A university city with students and researchers from Germany and abroad
Frequently Asked Questions
What is the property transfer tax rate in Baden-Württemberg?
Baden-Württemberg charges a Grunderwerbsteuer of 5.0% on the purchase price. Only Bavaria charges less, at 3.5%, while four states charge 6.5%.
Is Stuttgart a good city for property investment?
Median full-time wages in Stuttgart ranked fourth among all German districts in 2025. Before you buy, run the rental yield for each apartment with a realistic net rent and all costs.
What rental yields can I expect in Baden-Württemberg?
You can see the current gross yield for Baden-Württemberg at the top of this page. For each city and each apartment, check the yield with a realistic net rent and all costs.
Cities with the highest yield in Baden-Württemberg
Gross rental yield of cities with at least 30 listings for sale.
- 01Bad Herrenalb€2,141/m²5.7%
- 02Backnang€3,272/m²5.4%
- 03Rheinstetten€3,659/m²5.4%
- 04Albstadt€2,196/m²5.3%
- 05Bad Mergentheim€2,501/m²5.3%
Major cities in Baden-Württemberg
Check an apartment in Baden-Württemberg
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