Stuttgart: Price drivers to remain in place in the long run
Population growth in Stuttgart was almost the same as in Düsseldorf during the
current cycle. Since 2009, Stuttgart’s population has increased only 6%, or
35,500 people.
Due to its location in a basin, the city does not have much room
for expansion. In addition, there are numerous dynamic cities in the vicinity,
such as Mannheim, Heidelberg, Karlsruhe, Konstanz, Freiburg, Ulm and others.
Just like the federal state of Baden-Württemberg as a whole, these cities rely
heavily on the car industry and on mechanical engineering. The local companies
are highly international and export-oriented and benefit from globalisation.
Moreover, this environment has a favourable effect on research activity. Many of
these cities are home to excellent universities. The economic structure is one
reason why Stuttgart’s labour market has done very well across the whole cycle.
Unemployment has dropped to 4.4%, youth unemployment to 2.9% and
unemployment among foreigners to 9.4%.
EU Forecast
euf:ba.18.j:168/nws-01