Real estate prices in Germany - statistics & facts
To rent or to buy? Those looking for a home in Germany may find themselves thinking twice. The country recorded the second highest average bid price for a new dwelling in Europe at 4,800 euros per square meter as of 2022, just around 125 euros behind Austria and roughly 260 euros ahead of France. German-speaking countries making up the so-called DACH region (Germany, Austria, Switzerland) generally have some of the lowest home ownership rates compared to their European neighbors. Besides high purchasing prices for residential real estate, additional weighty factors were mortgage rates amid inflation in Germany.
While buying a house or apartment might not be completely out of reach all the same, renting in the interim is also a solution for many. However, the German rental real estate market is not without its own set of challenges. Some of Germany's largest cities are Berlin, Hamburg, Munich, Cologne and Frankfurt. These internationally famous locations attract a regular influx of new arrivals both from within Germany and abroad. The demand for housing usually far outstrips supply, creating fierce competition among prospective tenants, while simultaneously being a boon for landlords and property management companies. In 2024, Munich had the highest average rent price at 19.39 euros per square meter (compared to 13.19 euros per square meter ten years earlier), followed by Frankfurt and Stuttgart.
Currently, not enough new construction is taking place to diffuse the situation in the German real estate market. The number of building permits for residential real estate in Germany has been stagnating in recent years, with around 67,900 recorded in 2023. This was a noticeable decrease compared to the year before. Skilled labor shortage, lack of or difficulty in getting the necessary building materials, complicated intersections of regional and national legislation are all negative contributing factors both residential and non-residential real estate suffer from.
While buying a house or apartment might not be completely out of reach all the same, renting in the interim is also a solution for many. However, the German rental real estate market is not without its own set of challenges. Some of Germany's largest cities are Berlin, Hamburg, Munich, Cologne and Frankfurt. These internationally famous locations attract a regular influx of new arrivals both from within Germany and abroad. The demand for housing usually far outstrips supply, creating fierce competition among prospective tenants, while simultaneously being a boon for landlords and property management companies. In 2024, Munich had the highest average rent price at 19.39 euros per square meter (compared to 13.19 euros per square meter ten years earlier), followed by Frankfurt and Stuttgart.
Currently, not enough new construction is taking place to diffuse the situation in the German real estate market. The number of building permits for residential real estate in Germany has been stagnating in recent years, with around 67,900 recorded in 2023. This was a noticeable decrease compared to the year before. Skilled labor shortage, lack of or difficulty in getting the necessary building materials, complicated intersections of regional and national legislation are all negative contributing factors both residential and non-residential real estate suffer from.
