Comission-free real estate directly from the owner in Baden-Württemberg

Many jobs, well-known universities and beautiful nature ensure attraction

In the southwestern German "Ländle", where, according to self-ironic and likeable self-advertisement, one can do "everything but High German", the locals and many newcomers agree that it is a particularly good place to live. Here, between the romantic Black Forest and the fertile Rhine plain, the highest temperatures in Germany prevail, there is a lot of nature, culture and old architecture, and the proximity to France and Switzerland ensure a high recreational value and numerous excursion opportunities. Baden-Württemberg is also known as a growing region of excellent wines and a location of award-winning top gastronomy. Last but not least, the labor market situation, which is very good compared to the rest of Germany, with many large and internationally successful local companies, makes the region between Stuttgart, Karlsruhe, Freiburg im Breisgau and Tübingen an increasingly popular place to live. In line with these numerous good key data, it is of course not surprising that demand and thus prices for properties for sale in all of Baden-Württemberg's major and medium-sized cities have risen by around 4 to over 7 percent per annum over the past 5 years. In addition to the state capital Stuttgart with its current population of just under 600,000, which continues to be attractive but is not infinitely suitable for new buildings due to its specific geographical valley location, all other regional conurbations have also been affected by this development. The cities of Freiburg, Baden-Baden, Heidelberg, Ulm, Constance and the Lake Constance district, as well as Mannheim and Karlsruhe, were hit the hardest. The increase in the price of real estate in Pforzheim and Heilbronn was somewhat more restrained, while the purchase of housing is more favorable with stagnating to declining prices in more rural areas such as the districts of Freudenstadt, Schwarzwald-Baar and Rottweil, as well as in the Zollernalb, Main-Tauber and Neckar-Odenwald districts.

Demand in Baden-Württemberg for all types of real estate will continue to exceed supply in the future

In the home state of "schaffe, schaffe, Häusle baue" (build a house), both detached single-family houses, semi-detached houses and mid-terrace houses, as well as the highly sought-after central condominiums in particular, are reliably becoming more expensive every year; in inner-city locations, new buildings in the above-mentioned cities are sometimes already paying around 6,000 euros/m². The predominant type of new construction is the single-family house, which accounts for a good 80 percent of all new buildings, and the state's ownership rate of over 53 percent is above the national average. For houses of the types of construction listed, one must meanwhile reckon with prices between approx. 350,000 and 680,000 euros. In almost all communities and municipalities in Baden-Württemberg, extensive new construction and densification projects have also been initiated in recent years, but these have not yet been able to have a lasting effect on the pronounced supply deficit. The unbroken appeal of Baden-Württemberg's cities (Heidelberg, Freiburg, Constance, Mannheim, Stuttgart, Tübingen, Stuttgart-Hohenheim, Ulm, Karlsruhe, Friedrichshafen), many of which are also home to renowned universities, is increasingly pushing up property prices in their respective surrounding districts, for example in the counties of Karlsruhe, Emmendingen, Ludwigsburg, Biberach, Böblingen, Rems-Murr, Ravensburg, Ortenau, Rhein-Neckar and Breisgau-Hochschwarzwald. In 2012, the average median price per square meter in the 35 rural districts was €1,750 and €2,550 in the 9 urban districts. The most expensive was or is in Heidelberg (3,500 euros) and Freiburg im Breisgau (3,400 euros), and the most affordable with prices between 1,300 and 1.500 euros/m² for existing properties in the districts of Göppingen, Hohelohe, Schwäbisch-Hall, Main-Tauber, Heidenheim, Ostalb, Neckar-Odenwald, Calw, Freudenstadt, Rottweil, Schwarzwald-Baar, Tuttlingen and Sigmaringen, as well as in Heilbronn (1,800 euros) and Pforzheim (1,700 euros).

Population growth in Baden-Württemberg guarantees value increases

In view of the continuing population growth forecast in Baden-Württemberg, in contrast to the national trend, most serious estimates of future regional real estate price trends continue to assume almost universal increases, which will then also increasingly affect the regions of the state that have not yet been in such high demand. The currently cheapest offers for housing of all types and construction years can be found, for example, in the Swabian Alb, on the eastern slopes of the Black Forest and in the Main-Tauber district, while the cities with the currently lowest prices in a regional comparison are Pforzheim, Heilbronn and Mannheim. The demand for suitable smaller apartments for single-person households tends to be even stronger in Baden-Württemberg than in the rest of Germany. This is primarily due to the steady rise in student numbers in the cities mentioned above and the influx of young professionals looking to benefit from the continued good economic situation in the state with many potent employers. In line with the foreseeable continued high demand, housing in Baden-Württemberg is also fundamentally interesting and recommendable as an investment for private investors. In all 44 counties in Baden-Württemberg, not only the purchase prices for real estate but also the rents increased significantly between 2007 and 2012, in some cases by double-digit percentages, with the southern part of the state standing out in particular, where, for example in the county of Lörrach not far from the Swiss border, the rent increases in this period amounted to almost 18 impressive percent. Due to its balance of urban and rural residential areas in the midst of often still largely unspoiled natural landscapes with nonetheless good transport connections and modern infrastructure, Baden-Württemberg is also increasingly establishing itself as a popular retirement location for high earners, which means that the demand for suitable and rather high-quality real estate there will once again increase noticeably in the coming years.

Short facts Real estate in Baden-Württemberg:

- The special geographical location makes Baden-Württemberg very popular
- The good economic situation makes the southwest highly attractive
- The many well-known universities are also a major popularity factor
- Almost all large and medium-sized cities are seeing significant price increases
- The ownership rate is much higher than in the rest of Germany
- In the northeast of the state, prices are stagnating and in some cases still falling
- The southwest of the state is seeing the biggest increases
- In addition to students, more and more retirees are also being drawn to Baden-Württemberg