Real estate location – Location makes the difference between investments with the aim of yield (direct income, mostly B and C locations) or in an investment property (“speculation” on appreciation, A locations). The current Lukinski Rating 2023 on the attractiveness of cities in Germany, over 40,000 inhabitants. After that, it gets interesting, as we take a look at the hidden champions, with top Lukinski A+ rating and D- rating and higher risk. Are you looking for low-cost financing in Germany? Check conditions and providers in my comparison 2023.
Lukinski Rating: Location & Attractiveness
If you want to buy your first property, you will quickly hear about the different types of locations. But how can you assess the attractiveness of cities? Especially if it is not about the well-known cities in A-locations, as well as Munich, Hamburg, Berlin, Cologne, Frankfurt or Düsseldorf.
The Capital Investment Atlas Germany also takes a look at almost 500 cities in Germany and compares their attractiveness and development.
This is not a recommendation to buy. The rating is for general information purposes.
Real Estate Atlas: Sorted by Rating
Cities sorted by rating:
Real Estate Atlas: Sorted by Inhabitants
Cities sorted by number of inhabitants:
How the rating works
There are many parameters for evaluating a specific location (macro perspective), for example, the economy, its distribution among commerce, industry and production, the infrastructure, educational institutions, as well as doctors, leisure activities, but also the surrounding area, neighborhoods and neighboring cities. Another factor is, of course, the purchase price (or rent); the higher the price per square meter, the more people are drawn to the suburbs of large cities. All this ensures that individual locations lose or gain in attractiveness for people. Our rating compares attractiveness and development.
- Status: 2023
- Evaluation: Cities in Germany
- Criterion: At least 40,000 inhabitants
- Categorization: A (+) to D (-)
For real estate investors, the Capital Investment Atlas, divides the attractiveness of individual cities into 4 categories. From Lukinski A+ rating, for particularly attractive regions, which experience a high influx, to the D- rating, cities that have been stagnating for years and decades, little attractive people and economy. Inflation protection is our priority. The higher the rating, the more attractive the location is for real estate investors to enter.
Cities in comparison: Where to invest?
Below you will first find the most important German cities, in comparison. Metropolises with more than 500,000 inhabitants, plus major cities from 250,000 to 500,000 inhabitants and once again all major cities from 100,000 to 250,000 inhabitants. After that, it gets interesting, because we take a look at the hidden champions, with top Lukinski A+ rating and D- rating and higher risk with the question:
Where to invest in Germany?
Metropolis ( < 500,000 ) – High purchase price, long-term profit.
Overview of metropolises / major cities – tends to be in A-locations, with investment properties. This means little surplus from rental income, but a high increase in the value of the property, whether for the sale of an apartment or a house.
First, a look at the biggest cities everyone here knows, with populations over 500,000.
| City | BL | Rating | |||
| Note | Value | Short term | Long term | ||
| Berlin | BE | B+ | 5,8 | A- | B+ |
| Hamburg | HA | B+ | 6 | A+ | B- |
| Munich | BA | A+ | 11,9 | A+ | A+ |
| Cologne | NRW | A | 8,7 | A+ | A |
| Frankfurt on the Main | HE | A+ | 12,6 | A+ | A+ |
| Stuttgart | BW | B+ | 5,2 | A | B- |
| Düsseldorf | NRW | B+ | 5,8 | A | B+ |
| Leipzig | SA | A+ | 13,1 | A+ | A+ |
| Dortmund | NRW | C- | 0,2 | D- | C |
| Food | NRW | D- | -1,7 | D- | C |
Click here for the full list of metropolitan areas:
Large city (100.000 – 500.000) – Moderate purchase price, immediate return on investment
A look at the 2nd league of cities, major cities up to 500,000 inhabitants at a glance – Tends to be good B locations with yield properties. That is, the costs (repayment of the loan, interest and maintenance), are covered by current rental income. On the other hand, the value growth is lower than in A-locations.
Overview of large cities with up to 250,000 inhabitants – Tends to be a mix of B locations and often good C locations with yield properties. This means, as in the case of large cities, the costs (repayment of the loan, interest and maintenance) are covered by ongoing rental income. On the other hand, the value growth is lower than in A-locations. However, be careful with properties in C locations, because the risk that apartments or houses will be vacant at some point is greater than in B locations and much greater than in A locations.
| City | BL | Rating | |||
| Note | Value | Short term | Long term | ||
| Duisburg | NRW | D- | -1,8 | D- | C |
| Bochum | NRW | D- | -4,8 | D- | D- |
| Wuppertal | NRW | D- | -1,7 | D- | C |
| Bielefeld | NRW | B- | 3,5 | B | B- |
| Bonn | NRW | B+ | 5 | A+ | C |
| Münster | NRW | A+ | 13,7 | A+ | A+ |
| Mannheim | BW | D | -0,8 | D | D- |
| Karlsruhe | BW | A- | 6,6 | A+ | B |
| Augsburg | BA | A+ | 11,4 | A+ | A+ |
| Wiesbaden | HE | C+ | 2,8 | A- | C- |
Here you can find the list with all 67 major cities in Germany, from 100,000 to 500,000 inhabitants:
Cities ( < 100,000 ) – More return, more risk
Your advantage in cities between 40,000 to 100,000 inhabitants? You have less national and international competition. Especially if you live locally, a good strategic advantage, even for real estate newcomers. What’s your city’s rating? Find out here:
Hidden champions for your capital investment
Now it gets interesting, as we take a look at the hidden champions, with top Lukinski A+ rating!
After that you will find another list, with cities that have a very negative development on travel and with D- rating higher risk.
Top 10 A+ Ratings
Here you can see the top 10 A+ ratings:
- Bernau near Berlin (Brandenburg), Rating: 25.2
- Falkensee (Brandenburg), Rating: 22.3
- Oranienburg (Brandenburg), Rating: 17.7
- Potsdam (Brandenburg), Rating: 17.0
- Bad Kreuznach (Rhineland-Palatinate), Rating: 16.6
- Dachau (Bavaria), Rating: 15.8
- Landshut (Bavaria), Rating: 15.3
- Giessen (Hesse), Rating: 15.2
- Goslar (Lower Saxony), Rating: 14.8
- Ostfildern (Baden-Württemberg), Rating: 14.6
All A+ / A ratings in Germany
You want to get to know even more hidden champions in Germany? Then take a look at all A-Rated in Germany here! These cities are extremely popular, read more here, Lukinski A+ / A ratings for real estate investors:
A+ rated hidden champions at a glance – Strong overall development, influx of people, you can get good returns here, especially with condos you buy and rent out.
All B- / B / B+ ratings
All B ratings show cities with solid development. Here you can also find yield properties that immediately provide income that covers your monthly burdens around repayment, interest and maintenance. Ideally with additional extra, for active asset accumulation.
All C- / C / C+ ratings
All C ratings show cities with lower growth rates. Here, real estate as an investment should be treated with caution, because the vacancy risk is greater. This means that you pay more for every month that your property is not rented out. In addition, the increase in value of the property is very low, or even non-existent.
Risk Champions: Not for beginners
Newcomers to real estate should avoid these cities. These cities are at the lower end of the rating scale and thus bear the greatest risk of vacancies and negative property value development.
Top 10 D- Ratings
Here you can see the least, attractive D- ratings:
- Frankfurt Oder (Brandenburg), rating -20.9
- Gera (Thuringia), rating -18.5
- Neubrandenburg (Mecklenburg-Western Pomerania), rating -15.6
- Zwickau (Saxony), rating -15.1
- Dessau-Roßlau (Saxony-Anhalt), rating -13.7
- Wilhelmshaven (Lower Saxony), rating -12.3
- Wismar (Mecklenburg-Western Pomerania), rating -12.3
- Cottbus (Brandenburg), rating -11.5
- Schwerin (Mecklenburg-Western Pomerania), rating -10.8
- Unna (North Rhine-Westphalia), rating -10.3
All D / D ratings in Germany
Risk situations for real estate investors:
Risk Champions with D- rating at a glance – You should only buy properties in poor C-locations if you already have experience. Not only with buying and renting, but also with renovation and refurbishment.
