Lifestyle- & Real Estate Blog

Real estate market in smaller university towns in 2025: price momentum returns

22.09.2025 • 7 min. reading time

VON POLL IMMOBILIEN

Content of this article

Property prices for smaller residential units on the move again

In smaller university towns, life pulsates between lecture halls, the old town and cafés - living here often means a lower cost of living than in large cities, as well as more peace and quiet and a better quality of life. This is why students and investors continue to be drawn to these charming university towns. Many cities have seen prices fall in recent years, but the momentum is now returning: condominiums are once again in demand and prices are rising. But what exactly is the situation, especially for smaller residential units? The VON POLL IMMOBILIEN experts have analyzed the purchase price development1^ofcondominiums with a living space of up to 40 square meters in smaller ^university cities2 in Germany in the first half of 2025 compared to the first half of 2024. For comparison, a separate evaluation shows the development of average purchase prices without a square meter limit in the respective locations.

Daniel Ritter, Managing Partner at VON POLL IMMOBILIEN:

"The figures reflect the current situation on the German real estate market: after the majority of property prices trended downwards in 2023, they rose in the first half of 2025 compared to the same period last year in 35 of the 46 smaller university cities analyzed. In addition to slight to moderate price increases, nine locations even recorded double-digit price growth. The bottom has clearly been reached in most regions, which is why prospective buyers should no longer speculate on prices falling further, but should seize the moment now. Especially for investors looking for smaller residential units, which are particularly popular with students, there are interesting investment opportunities with attractive yield prospects in the smaller university towns. This is because demand for precisely these apartment sizes remains consistently high in university cities."

Fig. 1: Purchase and rental price trends for condominiums with a living space of up to 40 square meters in smaller university cities in Germany, 1st half of 2025 vs. 1st half of 2024 (Graphic: von Poll Immobilien GmbH)

Prospective buyers looking for a condominium of up to 40 square meters in one of the smaller university cities pay the most in Erlangen at an average of € 6,^338/m2 (rent: € 19.^14/m2). It is also striking that Erlangen also recorded the highest price increase in the entire ranking: Prices per square meter there rose by 13.5 percent in the first half of 2025 compared to the same period last year. Regensburg follows at a considerable distance with € 5,^686/m2 (rent: € 17.^22/m2), Freiburg im Breisgau with € 5,676/m2⁽rent: € 20.^81/m2), Potsdam with € 5.^601/m2 (rent: € 18.^47/m2), Constance at € 5,^586/m2 (rent: ^€ 19.80/m2), Tübingen at € 5,333/m2⁽rent: € 19.^80/m2) and Heidelberg at € 5,^108/m2 (rent: € 23.^18/m2). While property prices in Regensburg and Potsdam increased significantly by 10.3 percent and 12 percent respectively, they rose only slightly in Constance by 3.9 percent and in Freiburg im Breisgau and Heidelberg by 2.2 percent each. Only in Tübingen did prices fall by -2.2% in the first half of 2025.

Matthias Gebhardt, office owner of the VON POLL IMMOBILIEN partner stores in Erlangen, Forchheim and Herzogenaurach:

"The real estate market in Erlangen is proving to be extremely stable. The relocation of various DAX companies such as Siemens, Schaeffler and Adidas, as well as the well-known Friedrich-Alexander University Erlangen-Nuremberg, continues to ensure a very high demand for living space. Prices in all segments have recovered since 2023 and have even risen slightly again. Supply has fallen slightly. Due to the sharp rise in rents, the marketing period has also fallen to less than five months again. The demand for smaller residential units has grown overall. It is not only the number of students in Erlangen that is high; small condominiums are also in demand among young professionals and doctoral students. In addition, the number of single households continues to rise."

The average prices for a condominium of up to 40 square meters are cheapest in the university cities of Chemnitz at €1,^129/m2 (rent: €6.^20/m2), Wuppertal at €1,^731/m2 (rent: €10.^14/m2) and Magdeburg at €1,^899/m2 (rent: €7.^92/m2). While purchase prices in Chemnitz fell by -4.4 percent in the first half of 2025, they tended to stagnate in Magdeburg and Wuppertal at -0.2 percent and 1.1 percent respectively.

Quote box incl. image: Constantin Pauly, branch owner of the VON POLL IMMOBILIEN partner store in Wuppertal: "Since the beginning of the year, we have seen significantly more movement on the real estate market in Wuppertal. Prices have stabilized after the corrections in 2023, and we are even seeing slight increases again for high-quality apartments in good locations. We are seeing a clear increase in demand for condominiums up to 40 square meters in particular. Investors, students and singles are opting for compact units: manageable costs, secure rentability and solid yields. Locations in Elberfeld and close to universities are particularly popular. Wuppertal is currently extremely exciting for investors: comparatively low entry-level prices, a growing university city with over 23,000 students, strong transport links to the Rhineland and Ruhr region and rental yields that are virtually impossible to achieve in many A and B cities. If you invest cleverly here, you will secure a property with future potential."

Somewhat more expensive, but still at the lower end of the property price ranking for condominiums with a maximum area of 40 square meters - and with asking prices of between €2,000/m2^and€3,000/m2 - are the condominiums in the Rhineland.000/m2^-are the university cities of Mönchengladbach (rent: €11.^09/m2), Halle an der Saale (rent: €8.^94/m2), Saarbrücken (rent: €13.^04/m2), Hildesheim (rent: €11.^39/m2), Flensburg (rent: €9.^77/m2), Erfurt (rent: 10.21 ^€/m2), Siegen (rent: 11.75 ^€/m2), Göttingen (rent: 14.37 ^€/m2), Kaiserslautern (rent: 13.64 ^€/m2), Coburg (rent: 9.09 ^€/m2), Kassel (rent: 13.20 ^€/m2), Frankfurt an der Oder (rent: 8.81 ^€/m2) and Greifswald (rent: 11.88 ^€/m2). In terms of prices, the university cities in this segment developed very differently in the first half of 2025 compared to the previous year: Halle (Saale), Göttingen, Hildesheim, Coburg and Saarbrücken recorded significant price increases of between 8.5 percent and 10.4 percent. In Kaiserslautern, Greifswald and Flensburg, on the other hand, property prices fell by between -4.4 percent and -8.2 percent. This means that prices in the condominium segment with up to 40 square meters in Flensburg fell the most in the ranking.

For €3,^000/m2 to €4.^000/m2, prospective buyers looking for an apartment of up to 40 square meters will find prices in the smaller university cities of Braunschweig (rent: €12.^16/m2), Bielefeld (rent: €13.^04/m2), Paderborn (rent: €12.^06/m2), Oldenburg (rent: 14.19 ^€/m2), Passau (rent: €14.^15/m2), Lüneburg (rent: €14.^85/m2), Trier (rent: €13.^87/m2), Marburg (rent: €15.^12/m2), Jena (rent: €12.^96/m2), Aachen (rent: €14.^85/m2) and Bayreuth (rent: €13.^86/m2). Average purchase prices rose particularly significantly in Jena (8.8 percent), Braunschweig (9.9 percent) and Aachen (11.6 percent). While the other university cities in this price category tended to stagnate or record moderate price increases, property prices in Marburg fell significantly by 6.1%. This makes Marburg the third most expensive of the university cities analyzed.

Timm Goldbeck, branch manager at the VON POLL IMMOBILIEN partner stores in Aachen and Düren:

"We are seeing a significant increase in demand for smaller, attractively priced residential units in particular. The increased demand combined with a still low supply is also having an impact on price trends - prices for smaller apartments are rising. With RWTH Aachen University, the city is home to one of the most renowned universities in Germany and also one of the most recognized technical universities in Europe. Its excellent reputation as a university city, as well as its location in the border triangle of Germany, the Netherlands and Belgium, make Aachen a highly sought-after place to live, which is also extremely attractive for commuters. As a student and commuter city, Aachen is characterized by consistently high demand - especially for smaller residential units - and correspondingly very good rentability. In addition, the city is still very attractive in terms of price, especially for investors from outside the region"

In the following smaller university cities, prospective buyers have to calculate with prices between €4,^000/m2 and ^€5,000/m2 for a condominium with a living space of up to 40 square meters: In Rostock at € 4,^094/m2 (rent: € 11.^87/m2), in Würzburg at € 4,^164/m2 (rent: € 16.^66/m2), in Gießen at € 4,^190/m2 (rent: € 14.^85/m2), in Lübeck at € 4.^278/m2 (rent: € 13.^24/m2), in Kiel at € 4,^286/m2 (rent: € 12.^91/m2), in Mainz at € 4,^326/m2 (rent: € 17.^95/m2), in Koblenz at € 4.382 ^€/m2 (rent: € 15.^19/m2), in Heilbronn at € 4,^432/m2 (rent: € 19.^80/m2), in Darmstadt at € 4,^765/m2 (rent: € 20.^12/m2), in Bamberg at € 4,^773/m2 (rent: € 14.^49/m2), in Augsburg at € 4,^810/m2 (rent: € 19.^65/m2)and in Ulm at € 4,^862/m2 (rent: € 19.^80/m2). The vast majority of cities in this group were characterized by slight to strong upward price adjustments in the first half of 2025. The increases were particularly high in Rostock and Würzburg at 9.4 percent and 9.5 percent respectively, in Heilbronn at 11.6 percent and in Kiel and Koblenz at 12.3 percent and 12.8 percent respectively. This means that Koblenz and Kiel have the second and third highest price increases among the smaller university cities analyzed. In Lübeck, however, average prices fell by -7.5 percent, which is the second largest price decline in the analysis.

Comparison shows: Small apartments in university cities often more expensive than larger ones

In 28 out of 46 university cities surveyed, prices per square meter for condominiums up to 40 square meters are higher than the respective average price in the location, while rents for these smaller residential units are even higher in 44 out of 46 cities. This means higher entry barriers for owner-occupiers, but a clear signal for investors: demand for small residential units is stable and promises solid rental and yield opportunities in the long term.

A look at the average purchase prices for condominiums without a square meter limit is surprising with regard to the front-runner: in Potsdam, prospective buyers have to calculate an average of ^€6,308/m2 (rent: ^€13.68/m2), which is over €700/m2^morethan for a smaller residential unit up to a maximum of 40 square meters. This makes Potsdam one of the 18 locations in which, contrary to the trend, smaller residential units are more expensive on average than larger ones.

The university cities with the highest real estate prices for condominiums - over €5,^000/m2 on average in each case - also include Constance at €5,^636/m2 (rent: €16.^67/m2), Freiburg im Breisgau at €5.^629/m2 (rent: €15.^13/m2), Heidelberg with €5,^349/m2 (rent: €16.^93/m2), Tübingen with €5,^231/m2 (rent: €16.^06/m2) and Regensburg with €5,^100/m2 (rent: €14.^14/m2). While purchase prices for apartments have risen in all of the aforementioned locations compared to the first half of 2024 - in Potsdam by a double-digit 11.5 percent, the highest increase in the entire ranking - property purchase prices in Tübingen have fallen slightly by -2.9 percent.

Fig. 2: Purchase and rental price trends for condominiums without a square meter limit in smaller university cities in Germany, 1st half of 2025 vs. 1st half of 2024 (Graphic: von Poll Immobilien GmbH)

By contrast, the most affordable locations are Chemnitz at € 1,^189/m2 (rent: € 5.^88/m2) and Magdeburg at ^€ 1,922/m2 (rent: € 7.^28/m2), the only two locations in the ranking with a price per square meter below € 2,000. In Chemnitz, prices per square meter fell by -5% in the first half of 2025 compared to the same period of the previous year, while in Magdeburg they rose slightly by 1.9%.

With average prices per square meter of between €2,000 and €3.000 for a condominium in the university cities of Wuppertal (rent: €8.^82/m2), Mönchengladbach (rent: €9.^47/m2), Hildesheim (rent: €9.^18/m2), Halle an der Saale (rent: €7.^50/m2), Saarbrücken (rent: €9.^73/m2), Siegen (rent: 9.05 ^€/m2), Kaiserslautern (rent: €10.^95/m2), Flensburg (rent: €9.^87/m2), Coburg (rent: €9.^18/m2), Frankfurt an der Oder (rent: ^€7.55/m2), Erfurt (rent: €9.^79/m2), Kassel (rent: €9.^99/m2), Bielefeld (rent: ^€10/m2) and Braunschweig (rent: ^€10.10/m2).

In the mid-price segment between €3,000/m2^and€4.^000/m2 are the smaller university cities of Göttingen (rent: €11.^85/m2), Greifswald (rent: €10.^57/m2), Passau (rent: €11.^08/m2), Marburg (rent: €12.^50/m2), Koblenz (rent: €10.^95/m2), Aachen (rent: €11.^76/m2), Kiel (rent: €11.^03/m2), Oldenburg (rent: €11.^59/m2), Paderborn (rent: ^€10.12/m2), Bayreuth (rent: €11.^62/m2), Heilbronn (rent: €13.^35/m2), Trier (rent: €11.^42/m2), Jena (rent: €11.^61/m2), Giessen (rent: €12.^16/m2), Rostock (rent: €11.^03/m2), Würzburg (rent: €13.^22/m2) and Bamberg (rent: €12.^41/m2). While prices for condominiums in these locations rose again compared to the same period last year, Greifswald and Bamberg recorded a decline in average prices per square meter of -5.9 percent and -6.7 percent respectively.

In contrast, prospective buyers need to invest more capital - between € 4,000/m2^and^€ 5,000/m2 on average - for a condominium in a smaller university city in Lübeck at € 4,^005/m2 (rent: € 11.^84/m2), Lüneburg at € 4.^299/m2 (rent: ^€12/m2), Ulm at €4,^300/m2 (rent: €13.^74/m2), Augsburg at €4,^330/m2 (rent: €14.^59/m2), Mainz at ^€4,356/m2 (rent: ^€15/m2), Darmstadt at €4,^361/m2 (rent: €14.^65/m2) and Erlangen at €4,^550/m2 (rent: ^€15/m2). Only in Ulm did property prices fall slightly in the first half of 2025 compared to the first half of 2024, by -1.7 percent, while all other locations recorded a double-digit price increase - in Lüneburg by as much as 10.3 percent, the second strongest increase in the ranking.

1 The data basis for the purchase and rental price analysis for apartments up to 40 square meters in size and without a square meter limit is based on the average asking prices from GeoMap and VON POLL IMMOBILIEN Research (2025) for the first half of 2025 compared to the first half of 2024.

²VON POLL IMMOBILIEN uses BulwienGesa's classification of A, B, C and D cities as the basis for categorizing the German real estate market. The cities were grouped according to their functional importance for the international, national, regional or local real estate market. BulwienGesa classifies 46 cities in the C and D locations with at least 7,000 students as university or college cities, whereby A and B cities are not taken into account due to the separate consideration.

All data and graphics may be used and published with a reference to the following source: von Poll Immobilien GmbH(www.von-poll.com). The graphic can be downloaded digitally with an embedding link here: https://www.datawrapper.de/_/msN2L/ and https://www.datawrapper.de/_/poTGC/