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

Romolo Marini · 2026-10-13

Ludwigshafen lies opposite Mannheim, one bridge away. Nevertheless, a condominium here costs around a quarter less than on the other side of the Rhine. For investors who want to buy in the Rhine-Neckar metropolitan region, this is the first reason to take a closer look at Ludwigshafen.

The second look is more sobering. The city is as closely linked to BASF as hardly any other to a single company. The unemployment rate is one of the highest in Rhineland-Palatinate, and a new rent control has been in place since 2025.

We have compiled the figures and, at the end, will calculate the figures for a let apartment, before and after tax.

01Ludwigshafen in figures

All values we use for classification, with source and date.

02Population and demand

At the end of 2025, Ludwigshafen officially had 177,355 inhabitants and is thus the second-largest city in Rhineland-Palatinate after Mainz. According to the State Statistical Office, the number of inhabitants grew by 8.2% between 2014 and 2024, although the figure includes the switch to the 2022 Census. For the future, the federal institute BBSR expects a plus of 4% by 2045, and the state even expects 7% by 2040. Both forecasts are among the highest in the state.

The city is young. A fifth of the inhabitants are younger than 20, more than the state average. In the 2022 Census, 45.7% of households lived alone, and 63.9% of apartments were let. The average rent for all let apartments was €7.31/m².

Little is being built, but more than recently. 498 new apartments were completed in 2024, more than in Mannheim or Heidelberg relative to the stock. In contrast, hardly any new ones were approved. For the next few years, this means: little relief for the tight market, but also little new competition for existing apartments.

03Economy and labour market

Ludwigshafen is an industrial location of European importance. In mid-2024, 103,939 employees subject to social insurance worked in the city, 41.2% of them in high-tech industries. The state average is 13.7%. The largest employer is BASF with its main plant, where over 30,000 people work.

The city attracts commuters. 71,203 employees came from outside in 2024, while 38,485 Ludwigshafen residents worked elsewhere. The commuter balance of a good 32,700 shows how many people work here without living here. Ludwigshafen is part of the Rhine-Neckar metropolitan region with around 2.4 million inhabitants.

The flip side is the labour market. In September 2026, 9,522 people were unemployed in the city; the rate was 9.9%, almost twice as high as the state average. Compared to the previous year, there were 222 more unemployed. High industrial wages and high unemployment exist side by side in Ludwigshafen.

BASF has closed plants and cut jobs at the location in recent years. In December 2025, it agreed with employee representatives to refrain from compulsory redundancies at the location until the end of 2028. For landlords, this is both a support and a risk: demand depends on one company whose decisions move the market. The University of Applied Sciences for Business and Society brings additional students to the city.

04Rents, purchase prices and rental yield

Ludwigshafen has a qualified rent index (Mietspiegel). The 2025 edition is valid from 1 Aug 2025 to 31 Jul 2027 and updates the 2023 rent index by 8.61%. The average comparative rent is thus €8.25/m². This is the lowest value among the larger cities in the region; in Mannheim it is €9.19/m².

Newly listed apartments cost significantly more. The BBSR quotes an average asking rent of €11.27/m² for 2025, and the city of Mannheim quotes around €10.98/m² in 2024 with an average of 71 m². For older apartments, however, the rent control limits a new letting to 10% above the comparative rent.

The property market report from the Ludwigshafen appraisal committee is only available for a fee. We therefore rely on two other sources. The appraisal committees place Ludwigshafen in the price class €2,750 to under €3,250/m² for existing condominiums in 2024, and in the class €5,021 to under €5,683/m² for new ones. In its Housing Market Monitoring, the city of Mannheim evaluated the 2024 listings. According to this, condominiums in Ludwigshafen were offered for an average of €206,900 or around €2,800/m², the cheapest in the region.

The purchase price factor is derived from the purchase price and rent; its reciprocal is the gross rental yield. We calculate with the asking price of around €2,800/m².

A gross yield of 3.5 to just under 4% is realistic for an existing apartment with rent at the rent index level. You will only achieve the 4.8% with the asking rent for an older apartment if the previous tenant already paid that much. You can check your own figure with the rental yield calculator.

05Districts at a glance

Freely available purchase prices per district do not exist. The table therefore describes the character without price information. The exact residential location of an address is shown by the city's rent index calculator.

06Example calculation: Condominium in Ludwigshafen

What remains of the rent after costs, interest, and taxes? We calculate a typical existing apartment, assuming 100% financing of the purchase price, while incidental costs (6.8%) are paid from equity.

• Existing apartment: 68 m², built 1975, purchase price €196,000 (€2,882/m²), rent €8.25/m² (rent index).

Calculation: Net rent minus interest, repayment, and non-recoverable costs. Tax benefit includes depreciation (2.5% for built 1975) and interest.

With a comparative rent at the rent index level and current interest rates, you pay extra every month. The property only "pays for itself" if you bring in more equity or if the apartment is let significantly above the average. However, the top-up builds up assets of around €200,000.

07Summary: Is Ludwigshafen worth it?

Ludwigshafen is a location for investors who want to benefit from the growth of the Rhine-Neckar region but find Mannheim or Heidelberg too expensive.

1. Price advantage: Compared to Mannheim, entry prices are around 25 to 30% lower.
2. Low vacancy: The market is tight. A well-maintained apartment in a good location will not stand empty.
3. Cluster risk: The dependence on BASF is high. The company's future determines the city's future.
4. Rent control: The new 2025 regulation limits the potential for rent increases in new lettings.

Our recommendation: Ludwigshafen is suitable for long-term investors who focus on stability through a tight market rather than on maximum initial yield. Due to the high dependence on industry, a careful selection of the individual location and house is crucial.