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Everything you need to know before buying real estate is included in our Germany Property Pack
Apartment prices in Germany vary dramatically from €1,000 per square meter in smaller eastern towns to over €11,000 per square meter for new builds in Munich. The German residential market has shown resilience with modest growth of 1-3% annually as of September 2025, while rental prices have increased more aggressively at 6% year-over-year.
Understanding the true cost of apartments in Germany requires looking beyond the purchase price to include substantial closing costs of 10-12%, ongoing maintenance fees, and regional variations that can triple your budget depending on location. Whether you're considering investment opportunities or relocating to Germany, these costs will significantly impact your financial planning and decision-making process.
If you want to go deeper, you can check our pack of documents related to the real estate market in Germany, based on reliable facts and data, not opinions or rumors.
The average apartment price in Germany is €4,161 per square meter as of September 2025, with Munich leading at €8,476-€11,454/m² and smaller towns starting at €1,000-€2,000/m².
Total acquisition costs including taxes, notary fees, and agent commissions add 10-12% to the purchase price, while ongoing costs like utilities and maintenance average €350-€500 monthly for a two-bedroom apartment.
| City | Price per m² | 1-Bedroom (50m²) | 2-Bedroom (75m²) | 3-Bedroom (100m²) |
|---|---|---|---|---|
| Munich | €8,476-€11,454 | €425,000 | €635,700 | €847,600 |
| Berlin | €5,451-€8,316 | €356,000 | €640,200 | €831,600 |
| Hamburg | €5,500-€8,589 | €278,000 | €417,000 | €556,000 |
| Leipzig | €2,000-€3,000 | €150,000 | €225,000 | €300,000 |
| Smaller Towns | €1,000-€2,000 | €75,000 | €112,500 | €150,000 |
What's the average price per square meter to buy an apartment in Germany right now?
The average price per square meter for apartments in Germany is €4,161 as of September 2025.
This national average masks significant regional variations, with premium cities commanding much higher prices. Munich leads the market with existing apartments averaging €8,476 per square meter, while new construction reaches €11,454 per square meter.
Berlin apartments range from €5,451 to €8,316 per square meter depending on the specific location and apartment type. Hamburg follows closely with prices between €5,500 to €8,589 per square meter for new builds.
Eastern German cities and smaller towns offer significantly more affordable options, typically ranging from €1,000 to €2,000 per square meter. Cities like Leipzig, Dresden, and Halle represent the best value in the German apartment market.
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How much does the price vary between big cities like Berlin, Munich, Hamburg, and smaller towns?
Price variations between German cities are substantial, with Munich apartments costing up to 10 times more per square meter than properties in smaller eastern towns.
Munich represents the most expensive market, with new apartment construction averaging €11,454 per square meter. Berlin apartments typically cost €5,451-€8,316 per square meter, while Hamburg ranges from €5,500-€8,589 per square meter depending on the property age and specific location.
Frankfurt, Cologne, and Stuttgart occupy the mid-tier pricing range, typically commanding €4,000-€6,500 per square meter. These cities offer better value than Munich while maintaining strong connectivity and economic opportunities.
Smaller towns and eastern German cities like Leipzig, Dresden, and Magdeburg offer apartments starting at €1,000-€2,000 per square meter. This represents savings of 80-90% compared to Munich prices, making them attractive for first-time buyers and investors seeking higher rental yields.
Regional economic factors, transportation links, and local employment opportunities primarily drive these price differences across German cities.
What's the typical total cost for a 1-bedroom, 2-bedroom, and 3-bedroom apartment in those cities?
| City | 1-Bedroom (50m²) | 2-Bedroom (75m²) | 3-Bedroom (100m²) |
|---|---|---|---|
| Munich | €425,000 | €635,700 | €847,600 |
| Berlin | €356,000 | €640,200 | €831,600 |
| Hamburg | €278,000 | €417,000 | €556,000 |
| Frankfurt | €285,000 | €427,500 | €570,000 |
| Cologne | €225,000 | €337,500 | €450,000 |
| Leipzig | €150,000 | €225,000 | €300,000 |
| Dresden | €140,000 | €210,000 | €280,000 |
How much are closing costs, like notary fees, property transfer tax, and agent commission?
Total closing costs in Germany typically amount to 10-12% of the property purchase price, making them among the highest in Europe.
Property transfer tax (Grunderwerbsteuer) varies by state, ranging from 3.5% in Bavaria to 6.5% in some states. Berlin charges 6%, Hamburg 5.5%, and most other states fall between 5-6.5%. This tax alone represents the largest single closing cost.
Notary and land registry fees add another 1.5-2% of the purchase price. These fees are mandatory and cover the legal documentation, property transfer registration, and official verification of the transaction.
Real estate agent commissions range from 3.5-7% of the purchase price, typically split equally between buyer and seller (50/50). This commission structure was reformed in recent years to reduce buyer burden, but still represents a significant cost.
Additional costs include property surveys, legal fees if using independent counsel, and potential financing arrangement fees, which can add another 0.5-1% to the total transaction cost.
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What's the average rent per square meter, and how does it compare to buying?
The national average rent for new contracts in Germany is €13.55 per square meter per month as of September 2025.
Major cities command higher rental rates: Berlin averages €15.62 per square meter monthly, Munich €15.99 per square meter, and Hamburg €15.58 per square meter. These rates reflect tight housing supply and strong demand in urban centers.
A typical one-bedroom apartment (50m²) rents for approximately €1,436 monthly in central Munich, €1,220 in Berlin, and €1,097 in Hamburg. Leipzig offers more affordable options at €721 monthly for similar properties.
Rental yields in German cities typically range from 3-5% annually, with smaller cities often providing better returns. Munich properties yield approximately 3.2-3.8% annually, while Leipzig can achieve 5-7% rental yields due to lower purchase prices.
Rental prices have increased 6% year-over-year in 2025, significantly outpacing property price growth of 1-3%, making rental properties increasingly attractive for investors seeking cash flow.
How much do you need as a minimum down payment to get a mortgage in Germany?
The minimum down payment for a mortgage in Germany is typically 20% of the property value, though some banks may require higher deposits from foreign buyers.
German residents with strong credit profiles and stable employment can sometimes secure financing with 10-15% down payment, but this requires excellent financial credentials and income verification. Banks prefer conservative lending practices compared to other European markets.
Foreign buyers often face stricter requirements, with many banks demanding 25-30% down payment plus demonstration of German income sources or substantial international assets. EU citizens generally receive more favorable terms than non-EU buyers.
The down payment must cover the property price but not the closing costs, which require additional cash. For a €400,000 apartment, expect to provide €80,000-€120,000 down payment plus €40,000-€48,000 for closing costs and fees.
It's something we develop in our Germany property pack.
What are the current mortgage interest rates and how much would a typical monthly payment be?
Current mortgage interest rates for 10-year fixed loans in Germany average 3.6-3.8% as of September 2025.
For a €400,000 mortgage with a 3.7% interest rate over 25 years, monthly payments would be approximately €2,050. This calculation assumes standard amortization schedules common in German mortgage products.
German mortgages typically offer fixed-rate periods of 5, 10, 15, or 20 years, with 10-year fixed rates being most popular. Longer fixed periods generally carry slightly higher interest rates but provide payment predictability.
Banks require comprehensive income documentation, typically expecting housing costs not to exceed 35-40% of net household income. Self-employed borrowers face additional scrutiny and may need 2-3 years of financial statements.
Mortgage approval processes in Germany take 4-8 weeks on average, with banks conducting thorough property valuations and borrower assessments before final approval.
How much do you pay in yearly property taxes and ongoing maintenance fees?
Annual property taxes (Grundsteuer) in Germany typically range from €200-€700 per year for standard apartments, representing one of the lowest property tax burdens in Europe.
Monthly maintenance fees (Hausgeld) average €2.50-€4.00 per square meter, or approximately €3.00 per square meter across Germany. For a 75m² apartment, expect monthly maintenance costs of €225, covering building upkeep, common area maintenance, and reserve fund contributions.
Utility costs for an 85m² apartment range from €150-€260 monthly, including heating, water, refuse collection, and electricity. Berlin tends toward the higher end due to older building stock, while newer constructions in smaller cities achieve better efficiency.
Internet and phone services add approximately €35-€40 monthly. Property insurance, while not mandatory, is highly recommended and costs €200-€400 annually depending on coverage and apartment value.
Total ongoing costs for a typical two-bedroom apartment (75m²) amount to €350-€500 monthly, excluding mortgage payments but including all operational expenses and taxes.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Germany versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How fast are apartment prices rising or falling each year?
German apartment prices are growing at a modest 1-3% annually as of September 2025, representing a recovery from previous market corrections.
The German residential market has shown remarkable stability compared to other European countries, with Berlin experiencing approximately 2.1% price growth, Munich 1.8%, and Hamburg 2.4% year-over-year. This growth reflects sustainable market fundamentals rather than speculative bubbles.
Rental prices are increasing more aggressively at 6% year-over-year nationwide, driven by persistent housing shortages and population growth in major cities. This rental growth significantly exceeds property price appreciation, improving investment yields.
Smaller cities and eastern regions show varied performance, with Leipzig experiencing 4.2% price growth while some rural areas remain flat or slightly declining. Regional economic development and infrastructure investments drive these local variations.
Market forecasts for 2026 suggest continued modest growth of 2-4% annually, supported by housing demand, low interest rates relative to historical levels, and limited new construction supply in major urban centers.
What areas are considered affordable but still well connected for work or lifestyle?
Leipzig represents the best value proposition in Germany, offering apartments from €2,000-€3,000 per square meter with excellent rail connections to Berlin, Dresden, and other major cities.
- Leipzig - High-speed rail to Berlin (1.5 hours), Munich (4 hours), strong cultural scene, major logistics hub with growing tech sector
- Dresden - Historic city with €1,800-€2,800/m² prices, 2 hours to Berlin, significant tech and automotive industry presence
- Cologne - Major economic center, €4,500-€6,000/m² pricing, excellent connectivity throughout Europe, strong media and corporate presence
- Bremen - Maritime industry hub, €3,200-€4,800/m² pricing, good rail links to Hamburg and other northern cities
- Karlsruhe - Technology center, €4,000-€5,500/m² pricing, strategic location between Frankfurt and Stuttgart
- Berlin suburbs (Neukölln, Lichtenberg, Treptow-Köpenick) - €3,500-€5,000/m² pricing with excellent public transport to city center
How much should you realistically budget in total to move into an apartment, including furniture and setup?
Total move-in costs for buying an apartment in Germany require budgeting 15-20% above the purchase price for immediate expenses and setup.
Moving costs within Germany range from €1,200-€2,400 for local city moves, with additional charges for packing services, storage, or international relocations. Professional moving companies provide comprehensive services but represent significant upfront costs.
Furnishing a one to two-bedroom apartment costs €3,000-€8,000 depending on quality preferences and whether you buy new or secondhand furniture. IKEA and secondhand marketplaces offer substantial savings for budget-conscious buyers.
Security deposits for utilities, internet, and other services typically require €500-€1,000 upfront. Property insurance, initial utility connections, and municipal registrations add another €300-€600 to immediate costs.
For a €400,000 apartment purchase, budget €60,000-€80,000 total for down payment, closing costs, moving, and basic furnishing to achieve comfortable occupancy. This comprehensive budget ensures smooth transition without unexpected financial stress.
It's something we develop in our Germany property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Apartment costs in Germany vary dramatically by location, with Munich commanding premium prices while eastern cities offer exceptional value for money.
Smart buyers should budget for substantial closing costs of 10-12% and factor ongoing expenses of €350-€500 monthly for a typical two-bedroom apartment when making their investment decisions.
Sources
- Average House Price Germany
- Germany Price Forecasts
- Future of Real Estate in Germany 2025
- Julius Baer Property Market Report Germany Q3 2025
- Average Apartment Price per sqm Berlin
- IamExpat - Taxes Costs Fees Germany
- Hypofriend Property Purchasing Cost Calculator
- Expatica - Getting a Mortgage in Germany
- Reuters - German Home Prices Rise
- Studying in Germany - Cost of Living