Dusseldorf versus Cologne on the real estate market
cities as rivals
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Dusseldorf versus Cologne – a comparison of the real estate markets
Düsseldorf and Cologne in comparison.
Photo: Gabriel, Werner
Dusseldorf Experts say how the real estate markets of both Rhine metropolises have recently developed and what that means for prices, for example.
How is Düsseldorf’s real estate market doing compared to Cologne? Three experts answered this question on Tuesday from their professional perspective. The bottom line is that the state capital has the edge.
But it has become scarce over the past few years because Cologne has caught up, as Herwig Lieb, Regional Manager at Colliers, says. When it comes to take-up in the office market, for example, the figures are now the same, and the transaction volume for investments in commercial real estate was even higher in Cologne than in Düsseldorf for the first time in 2021.
Cologne has also come close to Düsseldorf in terms of office rent. When it comes to prime rents, however, the state capital is clearly ahead. One reason for this is the different willingness to pay of the most important groups of tenants. In 2021, around 53 percent of the rented space in Cologne was accounted for by the public sector, in Düsseldorf it was only 22 percent. This is also evidence of the mature mix of branches in Düsseldorf.
From Lieb’s point of view, the very low vacancy rate in Cologne also allows the conclusion “that there is a lack of space”. The Düsseldorf market, on the other hand, is characterized by more dynamism.
What is evident in both cities is that more and more is being invested in residential real estate. The prices for condominiums have risen sharply, and in Düsseldorf they are even slightly ahead of Cologne. What is good for investors is bad for private individuals looking for a property. “A lot more money could be scarcely invested here, but the offer is.”
From the point of view of the project developer, Klaus Küppers, branch manager of Pandion, focuses on the differences between the cities. From his point of view, the implementation will be faster in the state capital, he emphasized the professional triad of politics, administration and the public. In Cologne, the public is expected to have a greater desire to have a say in large-scale projects, which will require longer preparatory work. With a view to urban development, Düsseldorf made bolder decisions, also with a view to high-rise buildings.
Felix Meyen from HIH Invest Real Estate sees cities from the investor’s point of view. In Cologne it was still very difficult 15 years ago to gain access to the market from the outside because it had become “dominated by local networks”. “That also set back urban development.” Düsseldorf was more open and is still international and characterized by very professional developers. “But Cologne has caught up in the meantime.” The stock of outdated office properties there is still significantly larger: “On the other hand, it offers more development opportunities.”