Residential area

Neighborhood - The neighborhood describes the quality of a residential property’s location and is classified into the categories basic, average, good, and very good. It is one of the most important factors determining value in real estate appraisals and has a significant impact on rental rates, purchase prices, and marketability. The classification is based on infrastructure, transportation links, building structure, social structure, and environmental quality. In the Nuremberg metropolitan region, purchase price differences of over 100% can exist between a basic and a very good location.

Criteria for Location Classification

The classification of the residential area is based on objective criteria:

Basic Location: high traffic and noise pollution (e.g., main roads, freight traffic), few green spaces, predominantly post-war multi-story apartment buildings, limited local amenities, higher social burden ratio, limited public transportation access, or high crime rates.

Average Location: average infrastructure, mixed development of older and newer buildings, good public transportation connections, adequate local amenities (supermarket, doctor, school within reach), moderate noise pollution.

Good Location: low noise pollution, well-maintained streetscape, above-average infrastructure (multiple schools, doctors, high-quality shopping options), very good transportation connections (S-Bahn, subway within walking distance), plenty of green space, and an attractive environment.

Very good location: exclusive residential area, surroundings near parks or forests, high-quality single- and two-family homes, excellent infrastructure, no disruptive factors such as commercial activity, noise, or traffic, high social homogeneity among residents.

The difference between a simple and a very good location can amount to 50-100% in the rent per square meter in Nuremberg and even more in the purchase price.

Micro-location: Nuances within a location category

Within a location category, there are further distinctions-the so-called micro-location. Factors such as orientation (street-facing vs. quiet courtyard), floor level (ground floor vs. top floor), view (park-facing vs. industrial area), and distance to bus stops or schools significantly influence value-often by 5-15% within the same location category.

An example from Nuremberg: Two apartments in Gostenhof, both in a “mid-range location,” can differ significantly in value-one is located on a quiet side street with a historic facade and courtyard, the other on a major thoroughfare with traffic noise. The micro-location determines whether an apartment is valued at the upper or lower end of the location range.

Residential Location and Market Value

For real estate valuation, the residential location directly determines value via the standard land value. The Appraisal Committee publishes standard land values by location-in Nuremberg, the range extends from approx. 100-200 euros/m² in basic locations to over 1,200 euros/m² in very good locations.

In the income approach, the location influences the property yield rate: Good locations have lower property yield rates (approx. 1.5-2.5%), which leads to a higher income value for the same rent. In the comparable sales method, location is the central comparison criterion-deviations from the comparable location are accounted for by adjustment factors.

A deterioration in location (e.g., due to a new major thoroughfare or industrial development) or an improvement in location (e.g., due to urban renewal or a new subway station) significantly alters the property’s value-and is therefore a key argument for regular revaluation.

Practical Tip for Property Owners in Nuremberg

We recommend that property owners check their property’s residential area classification in the Nuremberg Rent Index and the standard land values of the Appraisal Committee (available online via BORIS Bayern, free of charge).

In Nuremberg, there are distinct location categories:

• Very good locations: Erlenstegen, Schmausenbuck, parts of Mögeldorf and Buchenbühl
• Good locations: St. Johannis, Maxfeld, Gleißhammer, Ziegelstein, Laufamholz
• Average locations: Langwasser-Mitte, Thon, Eibach, Schoppershof
• Basic locations: Parts of Langwasser-Nord, the area around the marshalling yard, Schweinau-Nord

Anyone who owns a property in a neighborhood with an upward trend (e.g., Eberhardshof, Gostenhof-Ost, St. Peter) should keep an eye on neighborhood trends-a reclassification from medium to good can increase the price per square meter by 15-25%. We inform our clients about current neighborhood changes and their impact on property value.

Frequently Asked Questions

Who determines the residential area of my property?

The official classification is carried out by the Appraisal Committee of the respective municipality as well as by the entity that compiles the rent index. In Nuremberg, the rent index is compiled by the City of Nuremberg in collaboration with tenant and landlord associations. Every address is assigned to a neighborhood. In case of discrepancies, an expert appraisal can individually assess the actual neighborhood quality-which is particularly important in transitional areas between neighborhood categories.

Can the residential area change?

Yes, residential areas are not static. Upgrading results from urban renewal, new public transportation connections (e.g., subway extensions), renovation of existing buildings, or the establishment of high-quality infrastructure. Downgrading is a risk due to increased noise, the loss of local amenities, or social changes. The revaluation takes place during the update of the rent index-in Nuremberg every 2 years.

How does the neighborhood affect the achievable rent?

In Nuremberg, the base rent in basic neighborhoods is approx. 7-9 euros/m², in average locations approx. 9-11 euros/m², in good locations approx. 11-14 euros/m², and in very good locations approx. 14-18 euros/m² (new lease, existing apartment, 2025). The residential area is thus the most important factor in determining rent, alongside the year of construction and the apartment’s amenities. A move from a medium to a good location means a rent increase of 20-30% in mathematical terms-for a 70-m² apartment, this corresponds to an additional 140-210 euros/month in base rent.

How do I find the residential area of my property in the Nuremberg Rent Index?

The Nuremberg rent index includes a location map on which every address is assigned to a residential area. The map is available online on the City of Nuremberg’s website. Alternatively, you can access standard land value information via the Bavarian Geoportal (BORIS Bayern)-the standard land value provides a strong indication of the quality of the location. We will review your specific location classification as part of our free real estate appraisal.

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