Where is a Buy-to-Let Property Worthwhile? Cities Compared 2026
Andriy Bezborodko · 2026-10-13
You want to buy an apartment as an investment and first ask yourself: in which city? On the web, you will find rankings with five "winner cities." Where their yields come from is rarely stated.
We have written our own location pages for 50 German cities, with figures from valuation committees, the census, statistical offices, and rent indices. In this article, we lay them side by side. We deliberately do not make a ranking out of them.
The reason is already in the table. Where the gross rental yield is high, more apartments are usually vacant and the population is shrinking. Where hardly anything is vacant, the square meter costs three to five times as much and the rent does not cover the loan.
01Comparison Table: 50 Cities
The table is sorted alphabetically. Each city leads to its own page with all sources, districts, and a calculated apartment example. The gross rental yield is our own calculation: annual rent divided by purchase price, before costs. Ancillary purchase costs, property management fees, maintenance, vacancy losses, and interest are not deducted.
| City | State | Purchase Price €/m² | Rent €/m² | Gross Yield before costs | Vacancy 2022 | Population Forecast | Rent Control | Transfer Tax |
|---|---|---|---|---|---|---|---|---|
| Aachen | NRW | 2,685 B | 12.37 A | 5.5 % | – | −3.7 % by 2040 | yes, to 2029 | 6.5 % |
| Augsburg | Bavaria | 3,990 P | 12.50 A | 3.8 % | 4.3 % | +3.8 % by 2044 | yes, to 2029 | 3.5 % |
| Berlin | Berlin | 5,511 G | 15.78 A | 3.4 % | 2.0 % | +2.8 % by 2040 | yes, to 2029 | 6.0 % |
| Bielefeld | NRW | 2,369 G | 9.70 A | 4.9 % | 3.2 % | +0.7 % by 2050 | yes, to 2029 | 6.5 % |
| Bochum | NRW | 2,080 G | 8.76 A | 5.1 % | 3.6 % | −2.5 % by 2050 | no | 6.5 % |
| Bonn | NRW | 3,347 V | 11.61 V | 4.2 % | 2.9 % | +3.4 % by 2050 | yes, to 2029 | 6.5 % |
| Braunschweig | Lower Saxony | 2,820 B | 9.98 A | 4.2 % | 3.6 % | – | yes, to 2029 | 5.0 % |
| Bremen | Bremen | 2,520 G | 10.81 A | 5.1 % | 3.2 % | +0.7 % by 2044 (State) | yes, to 2029 | 5.5 % |
| Chemnitz | Saxony | 1,200 G | 6.09 A | 6.1 % | 11.0 % | −8.5 % by 2045 | no | 5.5 % |
| Dortmund | NRW | 2,090 B | 8.98 A | 5.2 % | 3.3 % | −3.7 % by 2050 | yes, to 2029 | 6.5 % |
| Dresden | Saxony | 2,660 G | 9.56 A | 4.3 % | 4.1 % | +2.9 % by 2040 | yes, to 06/2027 | 5.5 % |
| Düsseldorf | NRW | 4,500 B | 13.00 A | 3.5 % | 2.9 % | +1.5 % by 2050 | yes, to 2029 | 6.5 % |
| Duisburg | NRW | 1,697 V | 7.71 A | 5.5 % | 4.2 % | −3.7 % by 2050 | no | 6.5 % |
| Erfurt | Thuringia | 2,200–2,900 P | 10.30 A | 4.3–5.6 % | 4.3 % | minor change by 2040 | yes, to 2027 | 5.0 % |
| Essen | NRW | 2,174 V | 8.77 A | 4.8 % | 3.9 % | −1.7 % by 2050 | no | 6.5 % |
| Frankfurt | Hesse | 5,670 G | 12.28 M | 2.6 % | 3.1 % | approx. 843,000 inh. 2045 (today 781,000) | yes, to Nov 25, 2026 | 6.0 % |
| Freiburg | Baden-Württemberg | 6,128 P | 14.20 A | 2.8 % | – | +3.2 % by 2040 | yes, to Dec 31, 2026 | 5.0 % |
| Gelsenkirchen | NRW | 1,316 V | 7.87 A | 7.2 % | 5.3 % | −1.6 % by 2050 | no | 6.5 % |
| Göttingen | Lower Saxony | 2,530 G | 12.11 A | 5.7 % | 3.8 % | −10.3 % by 2040 | yes, to 2029 | 5.0 % |
| Halberstadt | Saxony-Anhalt | 1,168 K | 5.80 A | 6.0 % | 11.0 % | −13.3 % by 2040 | no | 5.0 % |
| Halle (Saale) | Saxony-Anhalt | 2,061 G | 7.60 A | 4.4 % | 7.7 % | slight decline by 2040 | no | 5.0 % |
| Hamburg | Hamburg | 4,150 B | 9.94 M | 2.9 % | 1.9 % | 2.02m inh. 2040 (today 1.87m) | yes, to 2029 | 5.5 % |
| Hannover | Lower Saxony | 3,000 G | 12.61 A | 5.0 % | 3.3 % | approx. 567,000 inh. 2035 (today 559,000) | yes, to 2029 | 5.0 % |
| Jena | Thuringia | 2,900 G | 11.66 A | 4.8 % | 2.9 % | −4 % by 2045 | yes, to 2027 | 5.0 % |
| Karlsruhe | Baden-Württemberg | 3,640 G | 13.47 A | 4.4 % | 3.2 % | approx. 339,000 inh. 2040 (City) | yes, to Dec 31, 2026 | 5.0 % |
| Kassel | Hesse | 2,530 G | 9.62 A | 4.6 % | 4.2 % | +2.0 % by 2040 | no | 6.0 % |
| Kiel | Schleswig-Holstein | 2,500 B | 10.05 A | 4.8 % | approx. 2 % | 254,000–267,300 inh. 2033 | no | 6.5 % |
| Kitzingen | Bavaria | 3,300 K | 9.42 A | 3.4 % | 8.7 % | +8.6 % by 2044 | no | 3.5 % |
| Köln | NRW | 4,320 G | 14.70 A | 4.1 % | 2.5 % | – | yes, to 2029 | 6.5 % |
| Leipzig | Saxony | 2,850 B | 9.28 A | 3.9 % | 5.4 % | 664,000 inh. 2040 (today 634,000) | yes, to 06/2027 | 5.5 % |
| Lübeck | Schleswig-Holstein | 3,679 G | 10.29 A | 3.4 % | 2.9 % | approx. 226,000 inh. 2045 (+3,000) | no | 6.5 % |
| Magdeburg | Saxony-Anhalt | 1,692 G | 7.45 A | 5.3 % | 6.7 % | −23,100 inh. by 2040 (vs 2022) | no | 5.0 % |
| Mainz | Rhineland-Palatinate | 3,623 G | 13.81 A | 4.6 % | 2.9 % | – (Households +2 to +3 % by 2035) | yes, to 2029 | 5.0 % |
| Mannheim | Baden-Württemberg | 3.650 G | 11.86 A | 3.9 % | 4.5 % | +2.8 % by 2044 | no, planned for 2027 | 5.0 % |
| München | Bavaria | 6,500 B | 15.38 M | 2.8 % | 2.4 % | +14 % by 2045 | yes, to 2029 | 3.5 % |
| Münster | NRW | 3,980 G | 10.86 V | 3.3 % | 2.0 % | +2.0 % by 2050 | yes, to 2029 | 6.5 % |
| Nürnberg | Bavaria | 3,916 P | 10.33 M | 3.2 % | 3.1 % | 554,700 inh. 2033 (today 548,000) | yes, to 2029 | 3.5 % |
| Oldenburg | Lower Saxony | 2,820 G | 8.57 M | 3.6 % | 3.0 % | 174,500–177,400 inh. 2037 (today 177,000) | yes, to 2029 | 5.0 % |
| Osnabrück | Lower Saxony | 2,440 G | 10.01 A | 4.9 % | 3.1 % | −7.2 % by 2040 (State), City: growth | yes, to 2029 | 5.0 % |
| Potsdam | Brandenburg | 3,865 B | 9.48 M | 2.9 % | 2.7 % | +6.6 % by 2040 | yes, to 2029 | 6.5 % |
| Regensburg | Bavaria | 4,000 P | 12.80 A | 3.8 % | 2.9 % | +3.3 % by 2044 | yes, to 2029 | 3.5 % |
| Rostock | Mecklenburg-Western Pomerania | 3,402 G | 12.25 A | 4.3 % | 2.7 % | approx. −2 % by 2040 | yes, to 09/2028 | 6.0 % |
| Saarbrücken | Saarland | 1,930 G | 9.07 A | 5.6 % | 6.3 % | −5 % by 2045 (Regional Association) | no | 6.5 % |
| Salzgitter | Lower Saxony | 1,230 G | 5.94 M | 5.8 % | 7.1 % | −8.2 % by 2045 | no | 5.0 % |
| Siegen | NRW | 1,940 G | 8.20 V | 5.1 % | 3.9 % | −6.1 % by 2050 | no | 6.5 % |
| Stuttgart | Baden-Württemberg | 4,226 G | 15.51 A | 4.4 % | 3.5 % | +5.5 % by 2045 | yes, to Dec 31, 2026 | 5.0 % |
| Troisdorf | NRW | 2,400 B | 7.89 M | 3.9 % | 1.9 % | −3.1 % by 2050 | yes, to 2029 | 6.5 % |
| Wiesbaden | Hesse | 3,842 G | 13.30 A | 4.2 % | 3.3 % | +1.9 % by 2040 | yes, to Nov 25, 2026 | 6.0 % |
| Würzburg | Bavaria | 3,459 B | 12.60 A | 4.4 % | 3.1 % | +1.2 % by 2044 | yes, to 2029 | 3.5 % |
| Wuppertal | NRW | 1,785 G | 9.73 A | 6.5 % | – | approx. 363,600 inh. 2040 (today 364,600) | no | 6.5 % |
Code letters for purchase price: G used condominium (Gutachterausschuss), V used condominium (various sources), B used condominium (LBS Nordwest/empirica), P used condominium (post-bank study), K used condominium (other sources). Code letters for rent: A asking rents (empirica/others), V rent according to valuation committee, M rent index average (Mietspiegel).
02Four Types of Locations
The 50 cities show that there are four basic types of locations for real estate investors. Which type you choose determines your risk and whether you build wealth through monthly income or through appreciation and repayment.
- The Expensive Safe Havens (e.g., Munich, Frankfurt, Hamburg): Very low vacancy, high demand, but the lowest rental yields (often under 3 %). Here, you usually have to pay extra every month.
- Stable Growth Cities (e.g., Leipzig, Dresden, Augsburg): Moderate vacancy, good growth prospects, yields around 3.5 to 4.5 %.
- Yield Cities with Structural Change (e.g., Duisburg, Bochum, Essen): Yields around 5 to 5.5 %, slightly higher vacancy, and often a stable or slightly shrinking population.
- High-Yield/Risk Cities (e.g., Gelsenkirchen, Chemnitz, Halberstadt): High yields above 6 %, but also high vacancy and shrinking population forecasts. The risk of not being able to find a tenant is significantly higher here.
03Conclusion
The question "Which city?" is less important than the rankings on the web suggest. Our 50 cities show a clear pattern: higher yields are almost only available in exchange for more vacancy, more unemployment, or shrinking forecasts. It therefore makes sense to first define your own framework—meaning monthly leeway, equity, and risk tolerance—and then choose the location type that fits. Within the city, the purchase price, the house, and the tenancy agreement decide. We do not believe that choosing or excluding a city solely based on a single metric is a good way to go.
FAQHäufige Fragen
Which is the best city for a real estate investment?
There is no single best city for everyone. Cities with high gross rental yields like Gelsenkirchen or Chemnitz also have more vacancy and shrinking forecasts. Cities with very little vacancy like Munich or Hamburg have high purchase prices and low rental yields. Which city is right depends on your budget, your willingness to make monthly top-up payments, and your risk tolerance.
Where is a buy-to-let property worthwhile in 2026?
Whether an apartment is worthwhile is determined by the purchase price, rent, condition, and financing of the individual apartment. The city only set the framework. In our table, most of the 50 cities have a gross rental yield of 3.5 to 5 % and a vacancy rate of 2.5 to 4.5 %. That is where a close look at the individual property pays off the most.
In which city is the rental yield highest?
In our comparison, the highest gross rental yields are in Gelsenkirchen (7.2 %), Wuppertal (6.5 %), Chemnitz (6.1 %), and Halberstadt (6.0 %), each based on asking rents and before costs. These cities also have high unemployment rates or high vacancy. After property management fees, maintenance reserves, and vacancy losses, significantly less remains from the gross yield.
Is an apartment in Munich or Frankfurt still worthwhile as a buy-to-let?
As a source of ongoing income, it hardly makes sense with full financing. In our example, you would pay about €896 per month before taxes for 60 m² in Munich. On the other hand, the vacancy rate there was low at 2.4 % in 2022, and the city expects growth until 2045. Those who buy there are betting on wealth building through repayment and need an income that can support the top-up payment for years.
Is a high gross rental yield a good sign?
Not automatically. The gross rental yield only calculates annual rent divided by purchase price. Ancillary purchase costs of 5 to 9 %, non-recoverable property management fees, maintenance, and vacancy losses are missing. A high number is often compensation for higher risk. Therefore, always calculate the net rental yield and the monthly surplus or top-up payment.
Does the rent control (Mietpreisbremse) play a role in choosing a city?
Yes. It currently applies in 33 of the 50 cities. It limits the rent for new tenancies to the local comparative rent plus 10 %, with exceptions for apartments first used and rented after October 1, 2014. In these cities, calculate with the rent index (Mietspiegel), not with advertisements.
How high are the ancillary purchase costs per federal state?
The real estate transfer tax ranges from 3.5 % in Bavaria to 6.5 % in North Rhine-Westphalia, Brandenburg, Schleswig-Holstein, and Saarland. In addition, there is approximately 1.5 to 2.2 % for the notary and land registry, and potentially a broker. The rates for all states can be found under Real Estate Transfer Tax; your exact total is calculated by the Ancillary Purchase Cost Calculator.