Capital: Düsseldorf

North Rhine-Westphalia

North Rhine-Westphalia is Germany's most populous state, home to major cities like Cologne and Düsseldorf.

Last updated: October 28, 2026
Editorially reviewed

Transfer Tax: 6.5%; €19,500 on €300,000
Asking price/m² (median): €3,329
Cold rent/m² (median): €10.00
Gross rental yield (median): 3.6%; No. 10 of 16 states

Asking prices and rents from online listings for apartments, as of November 4, 2026. Not notarised sale prices.

North Rhine-Westphalia (NRW) is Germany's most populous state, with just under 18 million residents (end of 2025). The property transfer tax is 6.5%, a rate matched only by Brandenburg, Saarland and Schleswig-Holstein. Investors can choose between many major cities with different economies, from Cologne with its media and IT industries to the Ruhr cities, which are rebuilding their economies.

Real Estate Market

No single city dominates NRW. Even Cologne, the largest, has about 1.09 million residents, a small share of the state's population, and the market is spread across several metropolitan areas. The NRW property market report 2026 names Düsseldorf, Münster, Cologne and Bonn as the most expensive cities for new-build apartments. The Ruhr region was shaped by coal and steel for a long time; cities like Essen, Dortmund and Bochum now rely more on services, logistics and technology. Bonn is a federal city with government ministries.

Cologne attracts young people in particular: in 2025, about 9,400 more people aged 18 to 29 moved in than moved out
The NRW property market report 2026 records the highest building land prices along the Rhine, not in the Ruhr region

Transfer Tax Details

NRW has charged a Grunderwerbsteuer of 6.5% since 2015. That is the highest rate in Germany; Brandenburg, Saarland and Schleswig-Holstein charge the same. On a purchase price of 350,000 euros, this comes to 22,750 euros. Notary and land registry fees add about 1 to 1.5% of the price. Factor these costs into your return when you compare NRW with states that charge a lower rate.

Investment Cities

The choice ranges from the Rhine cities of Cologne, Düsseldorf and Bonn to the Ruhr cities, whose economies have been changing for years.

Cologne: Germany's fourth-largest city, with media and IT industries and about 92,700 students (winter semester 2025/26)
Düsseldorf: The state capital; disposable income per resident was 29,355 euros in 2022
Dortmund: A technology and logistics location with a technical university

Frequently Asked Questions

What is the property transfer tax in North Rhine-Westphalia?

NRW levies a Grunderwerbsteuer of 6.5%. That is the highest rate in Germany, shared with Brandenburg, Saarland and Schleswig-Holstein. The rate has applied since 2015.

Should I invest in the Ruhr region?

Purchase prices in the Ruhr region are below those along the Rhine, and cities like Dortmund and Essen have been shifting from heavy industry to services and technology for years. Whether a purchase pays off depends on the location, the condition of the building and the rent you can achieve. The current gross rental yield for NRW is shown at the top of this page; compare it with the figures for individual cities.

How does Cologne compare to Düsseldorf for investment?

Cologne is larger than Düsseldorf. Düsseldorf has the higher disposable income per resident (2022: 29,355 euros against 25,657 euros in Cologne). Current prices and rents for both cities are on the city pages.

Cities with the highest yield in North Rhine-Westphalia

Gross rental yield of cities with at least 30 listings for sale.

Rental yield ranking for North Rhine-Westphalia: cities compared

Major cities in North Rhine-Westphalia

Check an apartment in North Rhine-Westphalia

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