Cologne real estate market — prices, rental yield and trend

• Average price: $5,463 / m²
• Gross rental yield: 3.42%
• 12-month price change (USD): -1.77%
• Net rental yield: 2.59%
• Transaction cost: 12.3%
• Price basis: local-market average

Residential property in Cologne averages $5,463 per square metre. In dollar terms the market has barely moved over the last twelve months (-1.8%). That makes it the 55th most expensive of the 236 markets in the set.

What a buyer pays in Cologne

The $5,463 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 12.3% of the price here. On a 100 m² apartment at the average price that is roughly $67,192 on top of the $546,278 purchase price. That is above the 10.3% median across the set — the entry cost is part of the investment case here. Against the Germany national average of $3,066, Cologne carries a 78.2% premium — the gap between this market and the country as a whole. Among the other Germany markets we track, Düsseldorf at $5,085 is 7.4% cheaper, and Berlin at $5,612 is level with it.

What it earns

A square metre lets for about $15.6 a month. Against a purchase price of $5,463 per square metre that is 3.4% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 236th of 269 markets by gross yield. Rental income is taxed at 21.8–26.9% — the rate is not a single number here. That is the difference between 2.5% and 2.7% net on the same property. The 2.6% net figure we publish uses 24.4%.

How the tax works. Progressive under EStG § 32a at the 2026 tariff: for a non-resident the taxable base is increased by the basic allowance (§ 50(1) sentence 2), there is no flat expense allowance and no solidarity surcharge, which gives 22–27% across typical rent levels. Building depreciation (2–3% a year) is not included, so the real burden is noticeably lower. Source: dejure.org / EStG § 50.

Who can buy in Cologne

Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Cologne is built from asking prices from listings. It was last refreshed on 2026-10-17. We rate our confidence in this market’s data medium: the series is usable, but thinner or less current than our best-covered markets. We recompute every market the same way, which is what lets Cologne be compared with a country average or another city.

Sources: immowelt sale · immowelt.de. Snapshot: 2026-10-17.