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How Much Are the House Prices in Germany? [2023]

Restaurant in Germany

When buying a home, it’s essential to understand all the costs involved. Price is a crucial aspect for German real estate investors or if you want to buy a house for personal living.

The average purchasing price of a house in Germany is around 320,000 EUR. On average, people spend about 354,000 EUR on buying a home. The average price per square meter for an apartment in Germany was 4,664 EUR in 2022 across the country.

In Germany, purchasing a property isn’t as common as it’s in the US, which can be shocking given the monstrous size of the German economy. There are many reasons for this, and high house prices are one of them. Read on to stay informed about property or housing prices in Germany. If you are selling instead of buying a house in Germany, read this post.

To protect your new house or apartment in Germany, sign up for home insurance; it costs just 2 EUR per month and saves you thousands.

Read this guide to learn where is the best place to buy a house in Germany.

House prices in Germany in 2023

A white two-story house with a flat roof and a balcony in a desert-like area with a clear sky.

The typical home price in Germany is around 320,000 EUR. On average, people spend about 354,000 EUR on buying a house.

Prices for an average apartment range widely depending on the region and city. Here is an example of the average home price in three German regions:

RegionHamburgSaxony-Anhalt Bavaria
Average apartment size79m²72m²86m²
Average price per m²5.440 €1.455 €3.954 €
Total cost429,760 €104,760 €340,044 €

The cost of a house in Germany depends on:

  • City
  • the neighborhood
  • size of the home and land
  • age of the housing construction

The average price of a house in Germany is around 320,000 EUR. As a rule, a place in the countryside costs less than one in the city.

Furthermore, purchasing a home in Germany will cost you more than just the initial house price. Here are other additional costs buyers should expect. 

  • real estate agent commission (if applicable)
  • notary and registry costs
  • land transfer tax (if applicable)
  • property tax
  • ongoing maintenance costs
  • insurances

Read about the best places to buy a house or apartment in Germany.

Best Places To Buy a House or Apartment in Germany

1. Agent’s fee

If you are buying a house through a real estate agent, don’t forget to add the agent’s fee. For a 280,000 EUR apartment, the following rates apply:

  • Hamburg – 6,25 % or 17,500 EUR
  • Sachsen-Anhalt – 7,14% or 19,992 EUR
  • Bavaria – 7,14% or 19,992 EUR

2. Notary costs

The notary will charge between 1,5% and 2% of the purchase price. Hence, you will pay between 4,200 EUR and 5,600 EUR for a 280,000 EUR apartment. On top of it, agents charge a 19% sales tax.

3. Real estate transfer tax

Real estate transfer tax is between 3,5% and 6,5% of the purchase price. A buyer of a 280,000 EUR apartment will be charged between 9,800 EUR and 18,200 EUR in taxes.

Read about home financing in Germany.

The final cost of buying an apartment in various German regions:

Purchase price326.191 €104.760 €340.044 €
Real estate agent fee17.500 €19.992 €19.992 €
Notary fee4.892 €1.571 €5.100 €
Real estate transfer tax14.678 €5.238 €11.901 €
Total cost363.262 €131.561 €377.038 €

Don’t forget the running costs for homeownership in Germany.

As a property owner, you are responsible for paying bills and maintaining the home. These costs usually include:

  • Electricity
  • Gas
  • Water
  • Telephone
  • Cable television
  • Internet
  • Heating
  • Intercom
  • Garbage disposal
  • Various insurances
  • Stair and garden maintenance
  • Eventually cleaning fees

If you are still renting an apartment or house in Germany, you need to subscribe to liability insurance. This insurance will cover you if something happens with the property,

Some of the most reliable and affordable coverages are offered by expat insurance companies like Getsafe or Feather.

How to sell the house you bought in Germany? Here is a step-by-step guide.

Process of Selling a Property in Germany: Explained

How big of a house can you get with the average real estate price in Germany?

In Germany, people spend on average around 354,000 EUR on buying a house. But what kind of apartment or house will you get for that money?

According to the statistics and German real estate news, for 354,000 EUR, buyers in Germany get an average space of 132 square meters houses.

Your opportunities with this financial status depend on the location. In the countryside of the Thuringia region, you can buy a 402 m² house, and in Munich, it will be just enough for a 43 m² apartment.

Facts about the German housing market

1. 54% of Germans live in rented homes. This renting number is higher than in most European countries.

2. Depending on the region and city, rental costs take up a quarter to a third of the monthly income of Germans.

3. Munich, the Bavarian capital, has the highest rents in the country, followed by Frankfurt and Stuttgart.

4. On average, a single person in Germany has 44,6 square meters of living space.

5. Most Germans live in construction with up to ten apartments. 

6. Two people households are most common in Germany. Around one in six Germans lives alone. Only 0,5% of all households in Germany have three or more generations living under one roof.

Most Germans are renting instead of buying, but how much does it cost? If you are looking for a place to rent in Germany, check out this article about the best websites to find an apartment.

How Much Is Rent in Germany: Average Rent Prices [2023]

Average house prices in Germany

A two-story wooden house painted white with a metal roof and a balcony in a black and white photo.

By the end of the second quarter of 2022, the average single-family house cost 3,975 EUR/m². Two family houses went for a slightly higher price. The average apartment price per square meter was 4,664 EUR across the country.

Munich has the highest home price level averaging 8,843 EUR per square meter for an apartment and 6,944 EUR for a house. Berlin holds second place with an average price of 5,751 EUR per square meter.

Hamburg is in third place with an average price per square meter of 5,440 EUR.

The average apartment size in Germany is 91 m². Therefore, the average home will cost 424,424 EUR. 

Read our guide on buying an apartment in Munich.

Many factors influence the house price index in Germany, the location is one of them. The rural locations are the cheapest and the biggest German cities the most expensive.

Read about the best places to buy a house or apartment in Germany.

Germany’s major cities like Munich, Hamburg, and Frankfurt are among the most expensive for purchasing residential real estate.

LocationProperty prices, €/m²
Germany average 4,231
Source: statistikportal.de, arbeitsagentur.de, gfk.com, wohnungsboerse.net

The prices differ significantly between city houses, apartments, and countryside properties. 

How Much Is Rent in Germany: Average Rent Prices [2023]

To protect your new house or apartment in Germany, sign up for home insurance; it costs just 2 EUR per month and saves you thousands.

The large price gap between locations

In German cities like Gera, Suhl, or Eisenach, you can find homes with a 2,000 EUR per square meter price range, and over 13,000 EUR per square meter in Munich.

House prices in the biggest German cities in 2022 EUR/m²:

  • Berlin 4,948
  • Hamburg 5,631
  • München 9,208
  • Köln 4,879
  • Frankfurt 5,718

Source: Immowelt.de.

Best Places To Buy a House or Apartment in Germany

Property prices in Berlin

The median price for apartments in Berlin is currently 5,080 EUR/m². Yet, the median price for houses is 5,751 EUR/m².

Property typeMedian price
Apartments5,080 €/m²
Houses5,751 €/m²

Property prices in Munich

Since the third quarter of 2022, there’s been a price increase of more than 12% in Munich.

Half of the apartments in Munich cost more than 8,704 EUR per square meter. Meaning, that apartments in Munich are almost 60% more expensive than in Berlin.

Munich house prices aren’t expected to drop any time soon, thanks to the hike in recent years. In 2022, houses were 11% more expensive than the previous year. The prices were worst by the end of the latest quarter. 

Property typeMedian price
Apartments8,843 €/m²
Houses6,944 €/m²

Can Foreigners Get a Mortgage in Germany?

Trends in the German real estate market

Real estate prices have increased by an average of 75,3% between 2005 and 2022. This corresponds to an annual increase of 3,8%.

Where do house prices rise rapidly?

Since February 2007, purchase prices for homes in Germany have risen by 106% nationwide, according to the German Property Federation (ZIA).

Residential property value has exploded, particularly in the major German cities of Berlin, Hamburg, Munich, Frankfurt, and Düsseldorf.

Now you know the situation with real estate in Germany, but what about the land? It can be an excellent investment too. 

Can Foreigners Buy Land in Germany?

How much do you need to earn per month to buy a house in Germany?

A modern living room with a black TV stand, a round coffee table, and a white rug on a light wood floor.

A gross monthly salary of 2,000 EUR is enough to buy a house in Germany. The monthly mortgage payment should be less than 40% of your monthly income.

With a 2,000 EUR gross income, you could spend around 152,000 EUR on a real estate purchase. You’ll also finance a corresponding loan for over 25 years with a monthly payment of 630 EUR.

These numbers were calculated assuming a loan term or period is 25 years, with an annual repayment rate of 3% and 2,5% annual interest on the loan.

How do banks estimate the possible mortgage amount for the client?

German banks check the applicant’s income to calculate the loan amount; low-income earners get low-interest rates. 

From this amount, 35% can be spent on monthly mortgage payments. This leaves 65% of income for living expenses, i.e., food, clothing, and leisure.

You can estimate the mortgage amount yourself by using this.

Can Foreigners Get a Mortgage in Germany?

If you are selling a property instead of buying in Germany, read this article.

Process of Selling a Property in Germany: Explained

How much is a down payment for the property in Germany?

In Germany, a down payment is commonly 20% of the house price. The banks usually require a down payment. The more you lend for your new house, the higher the interest rates will be.

Where can you find a home for purchase in Germany?

Best online platforms to find real estate for purchase in Germany:

After buying a home in Germany, you can rent or sell it by using the same websites. Yet, with ohne-makler.de you can do it all at once.

Your listing will be posted on all other real estate platforms automatically. Hence, an ad will be published everywhere within just one posting. Read reviews about the ohne-makler.de here.

Check another article about buying real estate in Germany as a foreigner. 

Can A Foreigner Buy Property in Germany?

Financing a house in the German property market

A hand holding a smartphone with a blue and orange app icon and a modern house in the background.

As a foreigner and especially a non-EU national, you won’t have equal or unlimited access to the financing options as German citizens or permanent residents have.

Read in this article how to take a loan as a foreigner in Germany. Getting a mortgage will be more difficult. Although you won’t have full access, it is still possible to get new loans. In many cases, you can benefit from small loans with fewer requirements. 

Besides, the largest home financing company Interhyp offers financing options for individuals who plan to buy or build a house in Germany.

– best place for mortgages

is a comparison tool for mortgages in Germany. You can see offers from over 400 German banks. The best thing about this platform is that it’s 100% in ENGLISH.

But Loanlink24 isn’t only a comparison site. 

  1. It estimates the maximum loan amount a German bank will lend you. 
  2. If you don’t have a German bank account, they open it for you after feeding in your details or data 
  3. You will get pre-approval for your mortgage
  4. And of course, you can see and compare financing options from more than 400 German banks
  5. Once selected, you can apply for financing on their platform 

Loanlink24 is rated 10 out of 10 by 98% of customers. Read it here. Check out the Loanlink24 website.

Why do most Germans rent instead of buying a house?

Homeownership percentage across European countries in 2020:

Source: Statista.com

Only 42% of residents own property in Germany. It’s the lowest homeownership rate in the EU. This means there’s a strong demand for rentals and thus Germany has booming construction activity in most cities. 

Younger people are no longer able to afford their own homes, as you need to have a down payment, which is 20% of the property.

Moreover, buyers have to pay taxes and fees, which make up around 14% of the purchasing costs. 

How Much Is Rent in Germany: Average Rent Prices [2023]

Hence, if you don’t have a very high income or wealthy parents, it’s challenging to buy a property in Germany.

Furthermore, Germany’s rent cap isn’t rising as rapidly as house prices. And you have higher flexibility by being a tenant.

Berlin has the lowest rate: only 14,2% of residents own a home there. In Saarland, on the other hand, the homeownership rate is 62,6% – the highest in Germany.

Generally, people in large German cities don’t own property; almost everyone rents a place to live.

Best Places To Buy a House or Apartment in Germany

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