Therefore, compared to other major cities, Frankfurt has also
registered correspondingly lower growth in income and employment in recent
Owing to similar increases in rents and property prices, basic rental yields
(excluding transaction costs and borrowing) have remained virtually stable at
4% in recent years. However, in view of low interest rates, market-based yields
are likely to be substantially lower, partly under 3%. The dynamic price growth
continued in 2016. Our price projection at the beginning of the year of 7.6% on
the previous year appears to be happening. House prices across Germany
increased by more than 6% by the start of the autumn and list prices in Frankfurt
rose by more than 10% (Immobilienscout24).
However, in spite of this marked
increase, these prices are still quite low when viewed in an international context.
Consequently, according to Numbeo, Frankfurt house prices are more than 30%
below current market levels in London, Paris and Luxembourg.