Living space in Bonn remains scarce and expensive

Admittedly, finding an apartment in Bonn is becoming increasingly difficult. The market is virtually empty. What is more: rents and purchase prices have risen sharply in recent years. In order not to get lost in this complex market, KAMPMEYER has published the Bonn Real Estate Market Report for you. Here, you can learn how much tenants and buyers pay in different neighborhoods and how the market will further develop.

Bonn, liveable city

Regarding Bonn, the rule is: living space is scarce, expensive and highly sought-after. Not surprisingly so, as Bonn is a very liveable city where one feels at ease. Thanks to our market analysis we know the rental and purchase prices for each individual neighborhood. We help you find affordable living space – be it to rent or to purchase.

If you are looking for a newly constructed apartment, please continue reading here:

The most reasonable offers, without a doubt, are to be found in Graurheindorf, Ippendorf and Buschdorf. It costs less than EUR 10 per square meter here. It’s significantly more expensive in the center. Here, more than EUR 13 per square meter for living space is required. Poppelsdorf also occupies a top position with an average rent of EUR 11.91 for new constructions. Average rent throughout all neighborhoods is EUR 11.06. Basically, the following rule applies: the smaller the apartment, the higher the rent per square meter. In new constructions, average rents are between EUR 10.72 for apartments up to 160 square meters and EUR 20.29 for small apartments up to 20 square meters.

If you are looking for a portfolio rental apartment, please continue reading here:

The most reasonable place for tenants to live is the Hardtberg neighborhood of Hardthöhe. It costs an average of merely EUR 6.43 per square meter here,  whereas in Südstadt the 11-Euro-mark is exceeded. In Godesberg, an average rent of EUR 10 is only obtained in the neighborhood of Godesberg-Villenviertel. In the city district of Beuel, it is somewhat below EUR 10, at EUR 9.75. In the portfolio, the average quoted rent is EUR 9.10 per square meter. Likewise, in the portfolio, smaller apartments, in relation to larger ones, are more expensive. The average rent is EUR 8.51 for apartments up to 160 square meters and EUR 14.82 for small apartments (up to 20 square meters).

Or are you interested in the prices for newly constructed or portfolio freehold apartments?

Incidentally, in 2016, the most expensive new construction was offered in Plittersdorf for EUR 4.636 per square meter. You can find freehold apartments for less than EUR 3.200 per square meter in the neighborhoods of Röttgen, for EUR 3.150, Lannersdorf, for EUR 3.034, as well as Alt-Godesberg, for EUR 2.906. Prices for freehold apartments range from EUR 1.239 in the Beuel-Ost neighborhood to EUR 3.596 in Nordstadt. The two most reasonable offer prices by far are quoted for the city district of Beuel, at EUR 1.239 in Beuel-Ost, and the city district of Bonn, at EUR 1.290 in Tannenbusch. In the three neighborhoods of Nordstadt, Südstadt and Godesberg-Villenviertel, freehold apartments are significantly more expensive: it costs more than EUR 3.000 per square meter here. In the city districts of Hardtberg and Beuel, the 3,000-Euro-mark is not attained.

Low supply and wide ranges in the housing market

Prices for portfolio houses range from EUR 289.000 in Tannenbusch to EUR 1.050.000 in the neighborhood of Weststadt. The difference of EUR 761.000 can be explained by the fact that the price map does not distinguish between single family houses, duplex houses and apartment buildings. On the left side of the Rhine there are naturally more offers than in the city district of Beuel, on the right side. Average prices in the central neighborhoods of Nordstadt, Weststadt, Poppelsdorf, Zentrum and Südstadt, ranging between EUR 790.000 and EUR 1.050.000, are due to the high proportion of apartment buildings in the city center. Far more reasonable offers can be found in Alt-Godesberg (EUR 299.000), Heiderhof (over EUR 300.000) and Lannersdorf (EUR 340.000). Unfortunately, only a very small number of newly built houses have been placed on the market in the last two years. The price range within the entire urban area is between EUR 332.543 and EUR 1.349.600. Most of the offers were in Röttgen, the largest neighborhood in terms of surface area. There, both new construction houses at around EUR 350.000 as well as villas for a six-digit price are offered.

Here’s some more market data: rental prices

Between 2007 and 2016 alone, rents for new construction apartments rose by an average of 26.6 percent to almost EUR 11 per square meter. It looks similar in terms of portfolio property. Rent for one square meter is EUR 8.85 here, having thus increased by more than 18 percent over the past ten years.

Here’s some more market data: purchase prices

During the same period, prices for new construction freehold apartments have risen by about 47 percent, from EUR 2.418 to EUR 3.562 per square meter. Prices for portfolio property have developed almost as dynamically: according to the market report, prices per square meter have risen here by 45 percent, from EUR 1.526 to EUR 2.212.

Demand in Bonn

In 2015, the population size exceeded 320.000, and growth is expected to reach 348.000 inhabitants by 2040. There are good reasons for this surge: the economy in Bonn is stable, and along with the increasing number of people employed, the number of households increases too. What is more: the fear of inflation and the historically low interest rates both stimulate demand. Favorable interest rates not only reduce financing costs, they also increase the demand for real estate.

Forecast

A turnaround is not in sight – on the contrary: “Sought-after resedential areas remain expensive – for buyers as well as tenants. Many people will have to dig even deeper into their pockets this year for rent or their own property. This is primarily due to to the lack of apartments in Bonn,” claims Roland Kampmeyer. “In the next two years alone, rents are likely to rise by 9.5 percent to EUR 11.88 for new constructions, and by 5.1 percent to EUR 9.30 for existing property.”

You can order the Real Estate market Report Bonn 2016 free of charge here.