PROGEDO presents: Stuttgart

Stuttgart real estate market

Cauldrone drive

What are the Swabians actually doing in their valley basin, which they call Stuttgart? They're certainly not building enough housing for everyone who wants to live there, even though the Green mayor, Fritz Kuhn, promises improvement. But it's precisely the geographical location in the valley basin that makes housing construction through rezoning or densification of the urban area so difficult. Stuttgart would need at least 1,500 new housing units per year just to cope with the influx of new residents! Nevertheless, more and more people prefer to live in the valley basin rather than settle in Esslingen or Böblingen; and they don't live any further from the city center than someone from Hamburg or Munich would have to commute anyway if they lived anywhere within the city limits.

What does the Swabian, who traditionally tends towards owning rather than renting, mean when he speaks of a stable housing market in Stuttgart? He means that Stuttgart has always been expensive, will remain expensive, and will become even more so in the future. But Stuttgart also has a lot to offer. Every ranking is subjective, but we'll venture a top list that considers three parameters of rent per square meter: 1. The upward increase, i.e., the price potential, 2. the current prices according to the rent index (in parentheses), and 3. the image and potential of the respective districts as places to live.

The top ten:

1. West (12.01 euros): Particularly popular with singles because it's so central yet wooded. A cozy, small-scale mix of retail shops and restaurants.
2. Bad Cannstatt (10.51 euros): Largest and oldest district of the city, it has many springs and is the mecca for football fans: the Mercedes-Benz Arena.
3. Feuerbach (€11.19): Here, industry, commerce, and residential areas blend seamlessly, as the Feuerbach Valley offers attractive recreational opportunities. Close to the town center and with good infrastructure, it's a great place to live.
4. Mitte (12.59 euros): One of the longest shopping streets in Europe, the Old and New Castles, the main train station, but also quiet zones and a cemetery converted into a park – the Swabian thinks practically.
5. East (11.49 euros): Here, the Middle Ages meet modernity – in Berg or Gaisburg, you can walk in the footsteps of the Middle Ages, while right next door you'll find industry, workers' housing, and a few villas. A 100-meter-high gasometer is the landmark of this colorful mix.
6. Vaihingen (€12.60): In the southwest, you'll find important research institutions, parts of the university, and large IT companies. Well-connected to the city center, it's an ideal place to both live and work.
7. Sillenbuch (10.66 euros): Consistently above-average prices for property and rents must have a reason.
8. Münster (€9.95): Located in the northeast of the city, directly on the Neckar River. Tenants say it will become more expensive; landlords and investors say it has potential. One person's gain is another's loss.
9. Degerloch (€15.70): The most sought-after location, but rents are at their maximum. The residential areas of Waldau and Haigst have the reputation of being among the finest addresses. Here you will find many villas and detached houses with large gardens, many with views of the city center.
10. Birkach (€10.51): Located in the south, on the Filder Plain near Hohenheim Palace. It won't get any cheaper there.

The remaining rankings are: 11th Zuffenhausen, 12th Hoffeld, 13th Süd, 14th Hedelfingen, 15th Wangen, 16th Obertürkheim, 17th Botnang, 18th Möhringen, 19th Giebel, 20th Stammheim. This brings us to the average residential areas. However, price trends are consistently rising across the board, which is why these neighborhoods are included in the ranking.

Dream homes come at a price.

There are plenty of suburban terraced houses, but even the Swabian's tastes are changing. High-earning Porsche or Daimler employees don't want to crawl around on their knees in their front gardens at Easter, gardening like the petit bourgeoisie; they're much more interested in a renovated five-room apartment on the upper floor of a building in the west of Stuttgart, or perhaps a villa from the 1930s in need of renovation on a hillside. And foreign newcomers to Stuttgart don't have it easy either, should they want to buy property: "They often have to compete with investors for the same property," says Robin Frank, head of the real estate agency BW. Where this will all end is anyone's guess. Of course, as in all major cities, there are also records and absurdities: In Degerloch or Vaihingen, properties cost between €3,600 and €6,000 per square meter. Absurdly, on the upscale Schottstrasse, a floor in a new building recently cost €10,900 per square meter. The list goes on and on…

Renaissance of the cooperative

But what's interesting is that a segment of the housing market that was long out of fashion is now thriving: housing cooperatives. In the past, members had to shovel snow, sweep the streets, or mow the lawn on their designated cleaning rota. Long waiting lists were common for those who applied. Modernity has now arrived in the third-party housing market, with services related to the building being passed on as operating costs. Standards are now on par with the primary and private housing markets, so it's no surprise that between 200 and 300 inquiries are received for an apartment that's been listed online for more than a few days. Six to eight applicants are invited for a viewing. The new tenant becomes a member, which costs, for example, €1,600 in Feuerbach, but waives the security deposit. A good deal.

How else can apartment seekers find a place? With a bit of luck, they might find one through private landlords, who are still numerous in Stuttgart. While Swabians may be considered thrifty, there are still those kind older people with properties who are happy to rent to young families. And thanks to the new real estate agent law, private landlords will certainly be offering their properties themselves more often, even if the rent control measures prove ineffective. So the search is by no means hopeless.