# North Rhine-Westphalia > North Rhine-Westphalia is Germany's most populous state, home to major cities like Cologne and Düsseldorf. Canonical: https://www.investbud.de/en/states/nordrhein-westfalen Last updated: 2026-10-28 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. - Transfer Tax: 6.5% - Capital: Düsseldorf - Population: 18,0 million - Area: 34.110 km² - Germany's most populous state - Several major cities instead of one dominant metropolis - Transfer tax of 6.5%, joint highest rate in Germany - Cologne is the state's largest city and home to WDR and RTL ## 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 ## Practical Tips - Purchase prices in Essen, Dortmund and Bochum are below those in Cologne and Düsseldorf. Check areas near the universities there carefully for rental demand and vacancy in the building - Bonn lies south of Cologne and is a federal city with government ministries. Compare prices in both cities before you decide ## 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.