Frankfurt property prices rise sharply in first quarter

Property purchase prices in Frankfurt am Main rose more sharply in the first quarter than in other major German cities.

Interior architect Antje Sommerkamp purchased a house built in 1926 in the northwest of the city. After extensive renovations she presented the property to a living magazine this month and highlighted the value of historic buildings.

Frankfurt continues to attract new residents, supported by its role as a banking center and Germany’s largest airport. This is reflected in prices.

Experts nevertheless view the phase of blind value increases as over for now. The data come from VDP Research and discussions with specialists.

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Prices for residential properties in Germany are rising and nearing the summer 2022 peak. Gero Bergmann, president of the Association of German Pfandbrief Banks (vdp), expects further increases due to a growing housing shortage. In the fourth quarter of 2025, prices rose 4.2 percent nationwide year-over-year.

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Another major US investor plans to examine the German single-family home market. This follows Goldman Sachs and a Canadian pension fund's purchase of 491 row houses last year. US investors are targeting rental opportunities in specific regions.

Hong Kong recorded 17 per cent growth in investment in the first quarter, driven mainly by machinery purchases and construction activities that reflect a steadily improving property market.

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Deutsche Bank reported a first-quarter net profit of 1.9 billion euros, up about eight percent from the previous year and beating analyst expectations. CEO Christian Sewing praised the results as a strong start to the new strategy phase. Shares dropped more than two percent anyway.

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