Buy-to-let properties in Essen: Figures, locations and an honest calculation

Andriy Bezborodko · 2026-10-13

You are looking for an apartment where the rent covers a large part of the costs. Essen is one of the few major cities where this is still nearly possible with today's interest rates. Let condominiums were sold in 2025 for an average of €2,174 per square metre, with a rent of €7.41/m².

There are reasons for this. The unemployment rate is over 11%, the vacancy rate is higher than in Düsseldorf or Stuttgart, and more than half of the apartments date from the years 1949 to 1978. On the other hand, there is no rent control in Essen, unlike in Düsseldorf, Cologne, or Dortmund.

We work with official figures: city statistics, Census, appraisal committee, employment agency. At the end, we calculate a let apartment before and after tax and compare it with a new-build apartment.

01Essen in figures

The table bundles the most important data. Each row has its source and date; the links are at the bottom under Sources.

Almost three quarters of inhabited apartments in Essen are let. The market is large, and tenants have more choice than in Düsseldorf or Cologne.

02Population and demand

Essen grew significantly from 2021 to 2023, to 595,908 inhabitants. This was driven by migration, including refugees from Ukraine. Every year, around 2,000 to 2,600 more people die than are born. In mid-2026, the city reports 590,338 inhabitants. The decline is due to a comprehensive adjustment of the population register in the first quarter of 2026.

In its main variant, the city expects around 596,700 inhabitants by 2035, i.e. stability. IT.NRW, on a different data basis, arrives at a minus of 1.7% by 2050. A forecast is not a promise. For landlords, this means: you should not expect growing demand in Essen, but you should expect a stable one.

Households are more important than inhabitants. Essen has around 305,700 private households, almost half of which are single-person households. The average household size is 1.9 people. There is hardly any new construction: in 2024, according to NRW.BANK, only 488 apartments were completed.

03Economy and labour market

As of 30 June 2025, 271,635 employees subject to social insurance had their place of work in Essen, and 220,537 lived in the city. Around 144,600 people commute in daily, while around 93,600 commute out. The balance is around 51,000.

Essen is the headquarters of large energy, chemical, and industrial groups, including E.ON, RWE, Evonik, and thyssenkrupp. Added to this are the University Hospital, the University of Duisburg-Essen, and many service providers.

At the same time, unemployment is high. In September 2026, 35,493 people were unemployed; the rate was 11.3%, compared to 11.5% a year earlier. The Employment Agency sees a slight recovery, but no turnaround.

For your apartment, this means: in Essen, almost everything depends on the location within the city. An apartment in a sought-after district in the south appeals to different tenants than an apartment in the north, and the risk of rent arrears differs accordingly.

04Rents, purchase prices and rental yield

For investors, the Property Market Report 2026 from the appraisal committee is particularly useful. It evaluates 173 sales of let condominiums from 2025. On average, they cost €2,174/m², the rent was €7.41/m², and the apartments were 68 m² on average. The gross yield multiplier, i.e. the purchase price factor, was 24.2.

A total of 2,381 condominiums were sold in Essen in 2025, 2,125 of them in resales. Prices for existing apartments rose again compared to 2024, with the appraisal committee's index rising from 196 to 212 points, but remaining below the peak of 2022. New-build apartments cost a median of €5,350/m².

The yield is significantly higher than in the top cities. But note: the €7.41/m² is the average rent from actual sales. If you buy an apartment that is let for only €6.00/m², your initial yield is only 3.3%.

05The "Essen Gap": South against North

Essen is divided. South of the A40, the city is green, hilly, and expensive. To the north, it is flat, industrial, and cheaper. This gap is visible in every statistic.

• The South (e.g. Bredeney, Rüttenscheid, Heisingen): High demand, low vacancy, high prices, stable value. Good for investors looking for safety.
• The North (e.g. Altenessen, Katernberg, Karnap): Lower prices, higher yields, but also higher risk of vacancy or difficult tenancies. Good for investors looking for cash flow.

In the middle lies the City, popular with students and young professionals due to the university.

06Rules for landlords in Essen

Essen is one of the few large cities in NRW where the rent control (Mietpreisbremse) does not apply. For a new letting, you can freely agree the rent, limited only by the rules on rent usury or excessive rent.

The rent increase cap (Kappungsgrenze) is at the statutory 20% in three years (up to the local comparative rent). Essen is not included in the NRW ordinance that lowers the cap to 15%.

For the comparative rent, you use the qualified rent index (Mietspiegel) of the city of Essen.

07Example calculation: Let apartment in Essen

What remains after costs, interest, and taxes? We calculate a typical existing apartment, assuming 100% financing of the purchase price, while incidental costs (8.5%) are paid from equity.

• Existing apartment: 68 m², let for €7.41/m², purchase price €147,832 (€2,174/m²).

Calculation: Net rent minus interest, repayment, and non-recoverable costs. Tax benefit includes depreciation (2% for built after 1924) and interest.

Even in Essen, with 100% financing, you pay around €210 extra a month. But in return, you build up assets of around €147,000. If you manage to rent at the asking rent of €8.77/m², the monthly top-up drops to around €120.

08Summary: Is Essen worth it?

Essen is a location for investors who find the top cities too expensive and who value the absence of rent control.

1. Yield-Price Ratio: Better than in most German cities over 500,000 inhabitants.
2. Regulatory freedom: No rent control, no reduced cap.
3. Risk: The high unemployment and the North-South gap require a very careful selection of the individual property.
4. Property transfer tax: At 6.5%, it is one of the highest in Germany.

Our recommendation: Look at properties in the "middle" (e.g. Holsterhausen, Frohnhausen, Huttrop) or in good locations in the south. The north offers high yields on paper, but requires a lot of experience in management.