Where do expats buy in Germany?

Authored by the expert who managed and guided the team behind the Germany Property Pack

Everything you need to know before buying real estate is included in our Germany Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Germany. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the German real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Berlin, Munich, and Hamburg. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the most popular cities in Germany for expats to buy property?

Berlin, Munich, Hamburg, Frankfurt, Düsseldorf, and Stuttgart are the six most popular cities for expats buying property in Germany as of September 2025.

Berlin attracts expats with its vibrant cultural scene and relatively affordable property prices compared to other major German cities. The capital city offers a diverse international community and strong rental yields, making it appealing for both lifestyle and investment purposes.

Munich ranks as the top choice for expats seeking stability and premium quality of life. Despite being the most expensive German city for property purchases, Munich's strong economy, excellent infrastructure, and proximity to the Alps continue to draw international buyers.

Hamburg appeals to expats with its maritime atmosphere and robust economic opportunities. The port city combines waterfront living with strong job prospects in logistics, media, and renewable energy sectors.

Frankfurt serves as Germany's financial capital, attracting expats working in banking, finance, and international business. The city's extensive international school network and global connectivity make it particularly attractive to families and professionals.

How do property prices in Berlin compare to cities like Munich or Hamburg?

Munich property prices significantly exceed those in Berlin and Hamburg, with average costs reaching €8,476 per square meter in 2025.

Berlin property prices average €5,451 per square meter as of September 2025, making it approximately 36% less expensive than Munich. Despite this relative affordability, Berlin has experienced substantial price appreciation, with property values increasing by about 160% since 2000.

Hamburg property prices sit at €5,560 per square meter, positioning the city between Berlin and Munich in terms of cost. Hamburg prices have remained relatively stable with a slight decrease of 0.4% year-over-year, making it an attractive option for price-conscious buyers.

Frankfurt property prices average €6,116 per square meter, placing it above Berlin and Hamburg but below Munich. The financial center commands premium prices due to its international business appeal and limited housing supply.

The price differential between Germany's most and least expensive major cities can reach up to 50%, with Munich consistently commanding the highest premiums due to its economic strength and quality of life rankings.

What are the key factors that influence where expats buy property in Germany?

Employment opportunities and proximity to international companies drive most expat property purchase decisions in Germany.

International school availability significantly influences expat families' location choices. Cities like Frankfurt and Munich offer extensive international education networks, making them preferred destinations for families with children.

Quality of life factors including safety, public transportation, and access to green spaces play crucial roles in expat decision-making. German cities consistently rank high in global livability indices, with Munich and Hamburg particularly excelling in these areas.

Rental yield potential and long-term investment prospects influence expat buyers seeking both residence and investment opportunities. Berlin and Hamburg typically offer higher rental yields compared to Munich, making them attractive for investment-focused purchases.

Cultural amenities and international community presence affect expat comfort levels. Cities with established expat communities and English-speaking services tend to attract more international property buyers.

Are there neighborhoods in German cities that are particularly favored by expats?

Specific neighborhoods in each major German city have emerged as expat favorites due to their international atmosphere and amenities.

In Berlin, Mitte, Kreuzberg, and Prenzlauer Berg attract the highest concentration of expat property buyers. These central districts offer vibrant cultural scenes, excellent restaurant options, and strong public transportation connections to business districts.

Munich's Schwabing, Glockenbachviertel, and Bogenhausen neighborhoods draw expats seeking upscale living environments. These areas provide excellent infrastructure, proximity to international schools, and access to Munich's business centers.

Hamburg expats favor Eimsbüttel, HafenCity, Winterhude, and Blankenese for their community atmosphere and waterfront access. HafenCity, in particular, represents Hamburg's modern development with contemporary architecture and marina views.

Frankfurt's Sachsenhausen, Westend, and Bornheim neighborhoods attract international buyers due to their proximity to financial district offices and international schools. These areas offer excellent connectivity to Frankfurt's business centers and airport.

It's something we develop in our Germany property pack.

How do property taxes work for expats buying in Germany?

Property taxes in Germany apply equally to expats and German citizens with no additional restrictions or rates for foreign buyers.

Annual property tax (Grundsteuer) typically ranges from 0.26% to 1% of the assessed property value, resulting in annual payments of €80 to €500 for most residential properties. This tax varies by municipality, with some cities imposing higher rates than others.

Property transfer tax (Grunderwerbsteuer) represents a one-time payment ranging from 3.5% to 6.5% of the purchase price, depending on the federal state. Bavaria charges 3.5%, while Berlin imposes 6.0%, making location choice significant for total acquisition costs.

Notary and land registry fees add approximately 1.5% to 2% to the total purchase cost. These fees cover legal documentation, property registration, and official transfer processes required for all German property transactions.

No wealth taxes or additional foreign buyer taxes apply to expat property purchases in Germany, making the country's tax structure straightforward and predictable for international investors.

What are the mortgage requirements for expats in Germany, and how do they differ from locals?

EU nationals typically qualify for similar mortgage terms as German residents, while non-EU expats face stricter requirements.

Buyer Category	Maximum LTV	Required Down Payment	Income Requirements
EU Residents	Up to 100%	0-20%	Stable income verification
EU Non-Residents	Up to 80%	20%	Euro-denominated income preferred
Non-EU Residents	Up to 80%	20-30%	Stable income + credit history
Non-EU Non-Residents	Up to 60%	40%	Extensive documentation required
Self-Employed	Up to 70%	30%	3 years business records

Mortgage payments must not exceed 35% of monthly income for approval. Banks require proof of stable employment, preferably with contracts extending beyond the mortgage term.

Non-EU expats typically need larger down payments of 20-40% compared to locals who may qualify for 100% financing. Credit history verification becomes more complex for non-EU applicants, often requiring international credit reports.

Self-employed expats face additional scrutiny regardless of nationality, needing three years of business records and higher down payment requirements typically around 30% of the property value.

What is the process for foreigners to buy property in Germany, and are there any restrictions?

Germany imposes no legal restrictions on foreign property ownership, allowing anyone to purchase real estate regardless of nationality or residency status.

The property purchase process follows these steps: property search and viewing, due diligence and property inspection, mortgage application (if financing), preliminary contract signing, notarization of the final purchase contract, payment transfer, and land registry registration.

Property ownership does not grant residency rights in Germany. Expats must obtain appropriate visas or residency permits through separate immigration processes if they plan to live in Germany long-term.

All property transactions must be notarized by a German notary (Notar) who ensures legal compliance and handles the registration process. The notary remains neutral and represents both buyer and seller interests equally.

Due diligence should include property title verification, building condition assessment, and review of any existing liens or encumbrances. Most expats engage local real estate lawyers or agents familiar with international transactions.

How does the rental market in Germany impact expat decisions to buy rather than rent?

Germany's competitive rental market with rising rents and low vacancy rates increasingly drives expats toward property ownership.

Major German cities experience rental vacancy rates below 2%, creating intense competition for quality rental properties. Berlin, Munich, and Hamburg rental markets particularly favor landlords, with properties often rented within days of listing.

Rental costs in prime expat neighborhoods often approach mortgage payments for equivalent properties, making ownership financially attractive for long-term residents. Munich rental costs can exceed €20 per square meter monthly, making purchase cost-effective for stays exceeding 5-7 years.

German tenant protection laws, while strong, can create challenges for short-term expat renters who may face difficulties securing leases without extensive local credit history and employment documentation.

Property ownership provides expats with housing security and protection against rental increases, which averaged 3-5% annually in major German cities over the past five years.

It's something we develop in our Germany property pack.

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.

What are the typical costs beyond the property price that expats should expect when buying?

Additional costs typically add 8-15% to the property purchase price in Germany, varying by state and property type.

Transfer tax represents the largest additional cost, ranging from 3.5% in Bavaria to 6.5% in several other states including Berlin and Brandenburg. This one-time tax applies to the total purchase price.

Notary and land registry fees typically cost 1.5-2% of the purchase price. These fees cover legal documentation, property registration, and official transfer processes required for all German property transactions.

Real estate agent commissions range from 3-7% of the purchase price, sometimes paid entirely by the buyer or split between buyer and seller depending on regional practices and negotiation.

Annual property maintenance and management costs should be budgeted at 1-2% of property value. This includes building insurance, property management fees for condominiums, and regular maintenance expenses.

Financing costs include mortgage arrangement fees (typically 0.5-1% of loan amount), property valuation fees (€300-€800), and mortgage registration fees in the land registry.

What financing options are available to expats, and how can they get pre-approved for a mortgage?

German banks, international lenders, and specialized expat mortgage providers offer various financing options for foreign property buyers.

Major German banks including Deutsche Bank, Commerzbank, and regional Sparkasse banks provide mortgages to expats with appropriate documentation. These institutions typically offer competitive rates for EU nationals and residents.

International banks with German operations such as HSBC, BNP Paribas, and Crédit Agricole often provide favorable terms for their existing international clients, leveraging global banking relationships.

Specialized expat mortgage brokers like Hypofriend, Baufi24, and Dr. Klein offer multilingual services and expertise in navigating German mortgage requirements for international buyers.

Pre-approval requires income verification (typically 3 months of pay slips), employment contracts, bank statements, credit reports from home country, and proof of available down payment funds. Self-employed applicants need three years of business financial statements.

Online mortgage calculators and advisory services provide estimated budgets and loan terms before formal applications, helping expats understand affordability before property searches.

How does the German property market vary in terms of stability across different regions?

Major German cities demonstrate strong market stability with consistent appreciation, while smaller cities and rural areas show more variable performance.

Munich, Frankfurt, Hamburg, and Berlin property markets have shown resilience during economic downturns, with moderate appreciation even during challenging periods. These cities benefit from diverse economies and consistent demand from domestic and international buyers.

Eastern German cities like Leipzig and Dresden offer affordability advantages but potentially less liquidity and slower appreciation compared to western metropolitan areas. These markets suit investors seeking higher yields with longer-term horizons.

Industrial centers like Stuttgart and Düsseldorf provide stable markets supported by strong local economies, though growth rates typically lag behind top-tier cities like Munich and Frankfurt.

Coastal and resort areas in northern Germany show seasonal variation in demand and pricing, requiring careful timing for both purchases and sales to optimize returns.

Rural areas and smaller towns often provide attractive entry prices but limited resale markets, making them suitable primarily for personal use rather than investment purposes.

What resources or agencies are available to help expats navigate the property buying process in Germany?

Multiple specialized agencies and online platforms cater specifically to expat property buyers in Germany.

1. **Property Search Platforms** - ImmobilienScout24: Germany's largest property portal with English-language options - Immowelt: Comprehensive listings with advanced search filters - ImmoWelt: Regional focus with detailed neighborhood information - Homeday: Modern platform with digital viewing options - McMakler: Full-service digital real estate platform 2. **Expat-Focused Real Estate Agencies** - International Home (Berlin): English-speaking service specializing in expat needs - Engel & Völkers: Premium properties with multilingual agents nationwide - Real Estate for Expats Germany: Dedicated expat support and consultation - Berlin Relocate: Comprehensive relocation and property services - Munich Property Partners: Specialized service for international buyers 3. **Information and Advisory Resources** - Expatica Germany: Comprehensive expat guides and market information - HousingAnywhere: Platform connecting expats with housing solutions - The Local Germany: News and practical information for expats - International relocation services: Full-service support for corporate transfers 4. **Financial and Legal Support** - Expat mortgage brokers with multilingual services - International tax advisors familiar with German property law - English-speaking notaries and legal professionals - Currency exchange specialists for international transfers

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.

Sources

1. Finance for Expats - Real Estate Investment Guide
2. PSS Removals - Best Places to Live in Germany
3. HousingAnywhere - Best German Cities for Expats
4. Bishops Move - Best Cities for Expats
5. Expatica - Best Cities in Germany
6. Global Property Guide - Germany Price History
7. EconTribute - German Real Estate Index
8. Global Property Guide - German Taxes and Costs
9. Expatica - Getting a Mortgage in Germany
10. Kredium - Mortgage Guide for Foreigners