This paper presents a nonlocal interferometric synthetic aperture radar (InSAR) filter with the goal of generating digital elevation models (DEMs) of higher resolution and accuracy from bistatic TanDEM-X strip map interferograms than with the processing chain used in production. The currently employed boxcar multilooking filter naturally decreases the resolution and has inherent limitations on what level of noise reduction can be achieved. The proposed filter is specifically designed to account for the inherent diversity of natural terrain by setting several filtering parameters adaptively. In particular, it considers the local fringe frequency and scene heterogeneity, ensuring proper denoising of interferograms with considerable underlying topography as well as urban areas. A comparison using synthetic and TanDEM-X bistatic strip map data sets with existing InSAR filters shows the effectiveness of the proposed techniques, most of which could readily be integrated into existing nonlocal filters. The resulting DEMs outclass the ones produced with the existing global TanDEM-X DEM processing chain by effectively increasing the resolution from 12 to 6 m and lowering the noise level by roughly a factor of two.