Dortmund as an investment location for real estate
603,462 inhabitants and robust demand in Westphalia's largest city
Dortmund officially had 603,462 inhabitants as at 31.12.2024, making it the largest city in Westphalia and one of the largest municipalities in North Rhine-Westphalia. Municipal statistics packages confirm the size with fine-grained population data down to statistical districts, which enables a data-based micro-location analysis for investment decisions. On the market side, demand is high, while construction activity in 2023 declined significantly: completions fell by 35% to 1,379 units, building permits by 45% to 1,446 units; the municipal target of 2,000 new apartments/year was clearly missed, creating pressure in the rental segment in particular. At the same time, the city has sufficient residential building land potential of around 184 hectares with prospects for around 9,000 additional apartments (approx. 7,000 multi-family houses/approx. 2,000 detached/two-family houses) - a medium-term relief and project pipeline lever.
Accessibility and public transport upgrades: City-Takt-Plus, Line 400 and H-Bahn extension
Dortmund is pushing ahead with several public transport levers that will structurally upgrade corridor locations: The City-Takt-Plus will increase the frequency of light rail services on heavily frequented axes (including U41/U47/U49) to 5-minute and, in some sections, 2-minute intervals. The new innovation line 400 as a tangential ring line links light rail, S-Bahn and regional/long-distance services and, according to current plans, will start after the fall vacations in 2025 - a service especially for commuter flows with a high network effect. At the same time, the "U-Plus" project will extend and completely modernize the city station located under the main station - a capacity and quality gain for central city/train station locations. In addition, the financing of the H-Bahn extension to the U42 in Barop is secured; up to 95% funding from the GVFG, test route possible from 2027, full commissioning of the approx. 2 km extension route in 2029 at the earliest - a clear demand lever along TU/Barop axes.
Investment theses: Core in public transport/city locations, value-add via ESG and repositioning
Core: Refurbished apartment buildings and mixed-use properties close to public transport in city centre/railway station areas and along the high-density light rail axes (U41/U47/U49) benefit from increasing frequency, node modernization ("U-Plus") and the large tenant base of 603k tenants for low fluctuation and predictable cash flows.
Value-add: Energy-efficient modernization, floor plan optimization and first floor repositioning in side locations and at future tangential/ring relations (line 400) open up yield potential in a tight rental market; the residential building land backdrop (≈9,000 units perspective) and ongoing residential market observation offer planning security for timing and product selection.
Tactics/risk: Limited new construction deliveries in the short/medium term and high rental pressure support existing rents, but require careful ESG and operating cost strategies; the secured public transport upgrades (City-Takt-Plus, H-Bahn expansion) increase the exit capability in public transport corridors and campus/technology-related sub-areas.
Standard land values for Dortmund
The standard land values for Dortmund can be found in the standard land values for North Rhine-Westphalia here.