Frankfurt 2026 market update: Gutachterausschuss report and vdp Q2—€/m², volumes and yields

What changed and when

On 20 September 2026 the most complete public sources for Frankfurt’s property market are the city’s Immobilienmarktbericht 2026 from the Gutachterausschuss für Immobilienwerte (edition status May 2026, with full‑year 2025 figures and a Q1‑2026 update) and the Association of German Pfandbrief Banks (vdp) property price index for Q2‑2026, released on 10 August 2026.

The vdp reports that, year‑on‑year to Q2‑2026, residential prices in Germany rose by 1.9%. In the Top‑7 cities, residential increased by 2.1% year‑on‑year; within that group Frankfurt was +2.4% (Hamburg led with +3.8%). Commercial trended the other way: office and retail prices fell year‑on‑year by 1.2% and 0.2% respectively in Q2‑2026.

The Gutachterausschuss shows how 2025 ended and how 2026 began in Frankfurt. For 2025 the committee recorded 5,387 notarised contracts and €4,036.8 million of total consideration across all categories. Large‑ticket deals (€>10m) fell to 34 transactions in 2025 (from 38 in 2024); their cash volume was about €1.2bn, equal to 31% of all consideration in 2025 (37% in 2024). In Q1‑2026, built residential transactions fell by roughly 19% versus Q1‑2025 and consideration by about 14%, while built offices had similar deal counts to Q1‑2025 but a jump in consideration due to a single large office sale.

District €/m²: how Frankfurt actually discloses it

Frankfurt’s committee does not publish average €/m² by named district. Instead it assigns transactions to location classes embedded in the city’s Bodenrichtwert zoning and then reports €/m² by location class and building age. For condominium re‑sales (excluding penthouses/maisonettes) using 2025 contracts and a 1 January 2026 valuation date, the committee reports the following average “cleaned” prices per m² of living area:

• Central location: pre‑1950 €7,017/m²; 1950–1977 €6,537/m²; 1978–1990 €7,147/m²; from 1991/onwards €9,024/m²; new build €8,333/m². • Other locations, very good/good: pre‑1950 €6,317/m²; 1950–1977 €4,605/m²; 1978–1990 €4,876/m²; from 1991/onwards €6,713/m²; new build €8,093/m². • Other locations, medium/simple/very simple: pre‑1950 €4,586/m²; 1950–1977 €3,892/m²; 1978–1990 €4,056/m²; from 1991/onwards €6,679/m²; new build €7,812/m².

These location classes are not a marketing map. They are coded in the Bodenrichtwert “Klammerzahl” the city uses for valuation. If you need a district‑specific figure (for example, Westend‑Süd versus Gallus), the Gutachterausschuss can produce a Kaufpreissammlung extract on request for a fee. That is the only official way to obtain district‑level €/m² based on notarised sales.

A note on new build supply: within 2025, most new‑build condominium sales occurred in Gallus according to the committee’s narrative section. Treat that as distributional colour rather than a price signal; the €/m² above already embeds what traded and where.

Transaction volumes: 2025 totals and early‑2026 momentum

Full‑year 2025, all categories combined: 5,387 contracts; €4,036.8m consideration; 110.4 hectares transacted. By segment in 2025:

• Unbuilt land: 321 contracts; €211.8m. • Built properties (commercial and residential combined): 1,052 contracts; €1,709.4m. • Condominium titles (Wohnungseigentum): 3,194 contracts; €1,716.8m. • Parts ownership (Teileigentum): 669 contracts; €205.4m.

Within built residential 2025: single‑family (all types) 549 deals, €419.3m; multi‑family houses 438 deals, €848.7m.

Q1‑2026 snapshot the committee publishes side‑by‑side for context: condominiums 633 sales (€273.3m); pure multi‑family 48 sales (€71.7m). On the commercial side, built offices saw 5 sales in Q1‑2026 but €267.0m consideration due to one large office disposition.

Large‑deal concentration eased: 34 transactions above €10m in 2025 (from 38 in 2024). Their €1.2bn was 31% of 2025 consideration (37% in 2024; 40% in 2023). Three deals exceeded €100m in 2025, as in 2023 and 2024.

Where yields moved this summer

Frankfurt’s committee calculates net initial yields (“Nettoanfangsrenditen”) from actual 2025 contract prices and the city’s Mietspiegel 2024 (valid to 31 May 2026). On that basis and with a 1 January 2026 valuation date, the midpoints sit in a narrow band for condominiums: in central locations, median net initial yields range around 1.4%–1.7% depending on age; in very good/good locations typically 1.4%–2.3%; and in medium/simple locations 1.5%–2.5%. Average cleaned purchase prices per m² for those same buckets are listed above so you can reconcile the price–yield pair.

For the summer quarter itself (Q2‑2026), the vdp’s cap‑rate indices provide the direction of travel. Nationwide, rents under new leases in multi‑family rose faster than prices, so returns increased by 1.5% year‑on‑year. In the Top‑7 cities as a group, the opposite happened: returns on residential contracted by 0.7% year‑on‑year as price gains outpaced rent growth. On the commercial side, vdp’s cap‑rate indices rose year‑on‑year by 4.0% for offices and 1.6% for retail in Q2‑2026.

Two cautions. First, the committee’s yields are unlevered and based on the 2025 deal mix; small samples in some buckets mean medians can jump. Second, the vdp cap‑rate indices are directionally useful but are not a substitute for an asset‑level cash‑flow and capex plan. For a purchase decision, instruct a publicly appointed valuer (öffentlich bestellter und vereidigter Sachverständiger) to model the specific building, and ask your tax adviser about depreciation and interest deductibility in your case.

Method notes buyers should know

• Location classes come from the Bodenrichtwert system. The committee explicitly states the location tag is a selection device for comparable zones, not a marketing label. The Bodenrichtwerts were determined for the 1 January 2026 cut‑off in line with § 18(1) BauGB‑AV and the ImmoWertV 2021.

• The committee’s net initial yields use the city Mietspiegel 2024 as the rent basis (valid 1 June 2024 to 31 May 2026) and deduct non‑recoverable costs in line with ImmoWertV. Reported €/m² are “bereinigt” (parking, fixtures, etc. are stripped out) and thus align with the price of the apartment itself.

• Data windows differ. The Gutachterausschuss uses 2025 contracts and reports an early look for Q1‑2026; the vdp indices report national and Top‑7 signals up to Q2‑2026. When building your model, anchor assumptions to the specific asset and to the date you will sign and fund.

• District‑level due diligence. If you must benchmark a particular Stadtteil, order a Kaufpreissammlung extract for that zone and building type, then have a valuer translate it into a forward yield and capex plan for your unit or block. It is risky to lean on offer‑price portals that do not reconcile to notarised deals.