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

Michael Pauker · 2026-10-13

Paderborn is one of the major cities in North Rhine-Westphalia that have grown significantly over the past ten years. The university attracts young people, companies from IT, electronics, and industry provide jobs, and new residential quarters are being created on former barracks sites. That sounds like a good location for a rented flat.

The rents tell a more sobering story. The qualified rent index for an average flat is a good €6 to €7/sqm, and since March 2025, the rent control (Mietpreisbremse) has also applied in Paderborn. Anyone buying here must calculate carefully.

We have compiled the official figures and are calculating a flat, with the monthly additional payment before and after tax.

01Paderborn in figures

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

02Population and demand

At the end of 2025, 155,906 people were officially living in Paderborn. In the statistics of the state office IT.NRW, the number rose from 145,176 at the end of 2014 to 156,378 at the end of 2024, a plus of 7.7%. The comparison is not entirely exact because the values are based on two different censuses. That does not change the direction: Paderborn has grown in this decade, while many cities in the state stagnated.

For the future, IT.NRW expects a sideways movement, a plus of 1.0% by 2035, and a minus of 1.0% by 2050. This is better than the state average. The age structure is striking: the number of people over 65 is expected to rise by 23% by 2035, while the number of 18- to 25-year-olds will fall slightly.

In the 2022 census, 44.8% of households were single-person households, and 62.4% of flats were rented. The vacancy rate at 3.5% was slightly above the NRW average of 3.3%; 1.5% were vacant for longer than a year. The average rent for all rented flats was €6.69/sqm.

New supply is mainly being created on former military sites. According to the city, around 800 flats are planned on the site of the Alanbrooke Barracks; a first construction phase was completed in June 2026. The former Barker Barracks, covering around 54 hectares, has belonged to the city since 2024 and is to become a new city quarter. More flats mean more choice for tenants, thus also more competition for older existing flats.

03Economy and labour market

Paderborn is a place of work for a large surrounding area. At the end of 2024, 82,605 employees subject to social insurance worked in the city. In mid-2024, 41,075 commuted in and only 23,702 commuted out, a surplus of a good 17,300. Many of the inward commuters live in the rural district; some are looking for a flat in the city.

The economy is service-oriented. 59.7% of employees work in services outside of trade and transport, more than the state average of 52.7%. The university, clinics, administration, and IT companies contribute to this. In industry, companies such as Benteler and Diebold Nixdorf have their headquarters in Paderborn. 20.2% of employees work in the manufacturing sector.

For the Paderborn district, the unemployment rate in September 2026 was 5.9%; around 10,700 people were unemployed. This is less than the NRW average of 7.9%. The Employment Agency does not regularly publish a separate monthly value only for the city. In the whole of East Westphalia-Lippe, the number of unemployed rose slightly compared to the previous year. For landlords, this is a solid environment but not a free pass: the industry in the region is export-dependent and thus susceptible to economic fluctuations.

04Rents, purchase prices and rental yield

Paderborn has a qualified rent index that has been in effect since 1 April 2025. It begins with a base rent according to floor space: €8.74/sqm for flats up to 35 sqm, €7.39/sqm for 36 to 50 sqm, €6.27/sqm for 66 to 80 sqm. Added to this are surcharges and discounts in euros, such as €0.34/sqm for a fitted kitchen, €1.84/sqm for build years 2016 to 2022, and between plus 0.53 and minus €1.05/sqm depending on the rent price zone.

For a 70-sqm flat from the 1980s in the inner ring of the city centre, with a fitted kitchen and towel radiator, this results in €7.00/sqm. This is low compared to cities of a similar size. The Committee of Valuation Experts shows that in sold rented flats of this age, an average of €7.95/sqm is paid, which is slightly more.

Regarding purchase prices, the Committee of Valuation Experts publishes average values by build year for the city centre, each including a parking space: €2,370/sqm for build years 1950 to 1974, €2,630/sqm for 1975 to 1994, €2,980/sqm for 1995 to 2009, €3,830/sqm for 2010 to 2023. In 2025, new-build condominiums in the city centre cost an average of over €5,000/sqm for the first time, exactly €5,025/sqm. In Schloß Neuhaus, Elsen, and Sande, the price level is around €400/sqm lower.

The purchase price factor results from the purchase price and rent; its reciprocal is the gross rental yield. We have calculated both for a rented flat from the build years 1975 to 1994 at the average price of €2,602/sqm.

For build years from the 1950s to 70s, the gross yield according to the Committee of Valuation Experts is around 4%; for younger flats, it drops significantly. You can check your own figure with the rental yield calculator.

05Districts at a glance

The rent index divides Paderborn into six rent price zones. This is the best-documented basis for a location comparison, as the surcharges and discounts come from the evaluation of actual rents.

06Conclusion: Investment in Paderborn?

Paderborn is an interesting location for investors who focus on stability and growth rather than immediate high yields. The population growth and the strong labour market are clear plus points. However, the low rent level and the rent control limit the upside potential.

• Positive: Growing city, strong economy, many students, stable demand.
• Negative: Low rents, rent control, low initial yields, high prices for new builds.

If you buy a rented flat in Paderborn, you should calculate precisely. A property that just about covers its costs is easier to find in the older stock than in new builds.