The average price of detached and duplex houses in the biggest cities in Germany varied between approximately 5,000 euros and 10,000 euros per square meter in the second quarter of 2023. Housing was most expensive in Munich, where the square meter price of houses amounted to 9,931 euros. Conversely, Berlin was most affordable, with the square meter price at 4,802 euros.
How have German house prices evolved?
House prices maintained an upward trend for more than a decade, with 2020 and 2021 experiencing exceptionally high growth rates. In 2021, the nominal year-on-year change exceeded 10 percent. Nevertheless, the second half of 2022 saw the market slowing, with the annual percentage change turning negative in the fourth quarter of the year and that trend continuing in 2023. Another way to examine the price growth is through the house price index, which uses 2015 as a base. In the second quarter of 2023, the house price index measured about 150 percent, which means that a house bought in 2015 would have appreciated by 50 percent during this period.
Is housing affordable in Germany?
Housing affordability depends greatly on income: High-income areas often tend to have more expensive housing, which does not necessarily make them unaffordable. The house price to income index measures the development of the cost of housing relative to income. In the first quarter of 2023, the index value stood at 120.8, meaning that since 2015, house price growth has outpaced income growth by about 21 percent. Compared with theaverage for the euro area, this value was higher.
FAQs
Prices for Houses in Germany
The Immowelt platform reports that in 2023, the average cost of a finished house is 2,971 euros per square meter. In Hamburg, housing will cost you 5,781 € per m², while in Munich, it's as high as 10,420 € per m².
What is the most common house in Germany? ›
Half-timbered and fully timbered houses are common all over Germany.
What percentage of Germans own a house? ›
List of countries by home ownership rate
| Country or Territory | Home ownership rate(%) | Date of Information |
|---|
| Germany | 49.1 | 2021 |
| Switzerland | 42.2 | 2021 |
| United Arab Emirates | 28 | 2017 |
| Nigeria | 25 | 2019 |
67 more rowsFor instance, the average rent in Germany is €942 per month. However, when you search homes for rent in Berlin and Munich, expect an average rent of €1,745, whereas, in Frankfurt and Stuttgart, you'll find a lower average rent of €920 per month.
What is the average price of a house in Frankfurt Germany? ›
Single- and two-family homes in these districts of Frankfurt range in price from 600,000 euros to 1.4 million euros. In the case of condominiums, the price range of 3,750 euros to 6,200 euros per square metre is expected to increase further.
How much is a house in Munich? ›
In general, properties in Munich cost around 8,000 to 12,000 euros per square meter. If you decide to buy in Munich today, you will find slightly cheaper offers than two years ago, as prices have fallen by 10 to 20% depending on the segment and location.
Do most Germans own their own home? ›
Over 50% of the population of Germany does not own their home | Hacker News. There are some key differences in rental legislation that drive how different cultures view home ownership.
Why is homeownership low in Germany? ›
Germany has the second lowest share of homeowners of all OECD countries. This is driven by housing policies that produce incentives to rent. New studies show that alternative policies could increase the homeownership rate and reduce wealth inequality.
Where do the rich live in Germany? ›
As one of the top financial hubs in the world and the wealthiest city in main Europe, Frankfurt is home to more than 117,000 millionaires, including 14 billionaires. Frankfurt stands out from other big German cities (Berlin, Hamburg) in terms of wealthy populations despite contributing less to the country's GDP.
Do most Germans own or rent? ›
Only 43% own their home in Germany, where unemployment is 5.2%. Of course, none of this actually explains why Germans tend to rent so much.
Homeownership in Germany
A 2020 report by the German Federal Bank (Bundesbank) found that the country's low homeownership rate was primary down to three factors: the high additional costs of buying a property, mortgage interest payments not being tax deductible, and the country's strong social housing sector.
Is buying a house in Germany expensive? ›
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 is 3,065 EUR in 2021 across the country.
What is the average grocery bill in Germany? ›
Cost of food and drink in Germany
Germans generally spend 15% of their income on food, beverages, and tobacco. On average, a single-person household spends €200 per month on groceries; a couple will spend around €365, while a family of four spends around €520.
What is a good salary in Germany? ›
A salary between €64,000 and €70,000 gross a year is considered a good salary in Germany. For a single person, this means roughly €40,000 to €43,000 euros net a year or between €3,300 and €3,600 euros net a month.
What salary is needed to live comfortably in Germany? ›
But, in general terms, a good annual gross salary in Germany is between €64,000 to €81,000. But most Germans who earn a yearly gross salary of €60,000 and above are happy with their salary.
Is it expensive to live in Germany? ›
Life in Germany is relatively inexpensive. Between cities, costs may vary, but prices are affordable compared to other urban centres around the world.
How much money is needed to live comfortably in Germany? ›
As mentioned above, an average resident in Germany can expect to incur roughly €1200 – €3000 per month in costs. Let us see how this matches up with average gross salaries across the country: Berlin – €3,168 per month. Munich – €3,780 per month.
Is it worth it to buy a house in Germany? ›
Renowned for its stable economy, strong legal system, and commitment to quality living, buying property in Germany as a foreigner is a secure and reliable investment, and you can benefit from rising house prices.
What is the average cost of living in Germany in dollars? ›
The cost of living in Germany is quite reasonable compared to other European countries. As a single person, you will need a minimum of €934 per month (around $1,018 US dollars) or €11,208 per year (around $12,217 US dollars) to cover your living expenses in Germany as of 2024.
