How Much Will Housing Cost in Germany in 2026: Where Are the Most Expensive and Least Expensive Apartments?

Despite the high interest rates of recent years, the German real estate market is gradually recovering, and housing prices are on the rise again. At the same time, the price per square meter varies significantly depending on the federal state: in some regions, it exceeds €5,000, while in others it remains below €1,500. Learn more about current housing prices in Germany, the most expensive and most affordable regions, as well as the latest real estate market trends

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Germany remains one of the most attractive real estate markets in Europe for both local residents and foreign buyers. Following a correction that lasted from 2022 to 2024 due to a sharp rise in interest rates, the market is gradually returning to growth.

According to Reuters, in the first quarter of 2026, housing prices rose for the sixth consecutive quarter, although the pace of growth has slowed somewhat. At the same time, the difference in housing costs between the federal states remains enormous: prices can vary by a factor of several depending on the region. That is why, before buying an apartment or a house, it is worth carefully analyzing not only the average cost per square meter but also the specifics of the local market.

In the previous article, we reported on the most expensive cities in the world to live in in 2026, according to Numbeo.

Are you planning to buy real estate abroad? Before concluding a deal, it is important to consider not only the price per square meter, but also tax liabilities, restrictions for foreigners, title checks, and additional costs. Visit World's real estate lawyers will help you analyze the property, assess legal risks, and accompany you at all stages of the transaction: from the initial consultation to the signing of the contract. Get professional support and confidence in every step.

How much does housing cost in Germany today?

Real estate prices in Germany vary significantly depending on the federal state, city, and type of property. The most expensive areas remain the economically developed regions in the south and north of the country, while housing in the eastern states is often several times cheaper.

According to Immowelt, in June 2026, the average price of apartments in Germany was 3,272 euros per square meter, and the average price of single-family homes was 2,867 euros per square meter. However, these figures are averages and do not reflect significant regional differences.

National averages:

- Apartments – 3,272 €/m²;

- Single-family homes – 2,867 €/m²;

- In the most expensive federal states, the average price of apartments exceeds 5,000 €/m²;

- In the most affordable regions, a square meter can be purchased for less than 1,000 €/m².

The region itself is one of the main factors determining real estate prices. Price differences between individual federal states can exceed a fourfold difference, so it is worth comparing offers in different parts of the country before purchasing a home.

In our previous article, we reported that Spain has been named the best country for real estate investment in Europe for the first time.

Where in Germany is housing the most expensive?

The highest real estate prices are traditionally found in federal states with strong economies, high household incomes, and stable demand for housing. Hamburg, Bavaria, and Berlin remain the leaders, where a square meter costs several times more than in the eastern regions of the country.

The most expensive German federal states in 2026 are:

1. Hamburg – an average of 5,643 €/m² for an apartment and 5,686 €/m² for a house;

2. Bavaria – 5,166 €/m² for an apartment and 4,291 €/m² for a house;

3. Berlin – €4,911 per square meter for an apartment and €4,528 per square meter for a house;

4. Hesse – €4,055 per square meter for an apartment and €3,508 per square meter for a house;

5. Baden-Württemberg – €3,985/m² for an apartment and €3,613/m² for a house.

The high cost of housing is due to the concentration of major employers, well-developed transportation infrastructure, prestigious universities, and stable demand from both local residents and foreign buyers. For example, Hamburg is one of Europe’s largest port and financial centers, Bavaria attracts international companies and high-tech businesses, and Berlin remains the largest rental market and one of the EU’s leading startup hubs.

Despite high prices, these regions continue to show the highest activity in the real estate market and remain the most popular among buyers.

In our previous article, we discussed where apartment prices are rising the fastest, how much housing costs in different cities across Hungary, and what to expect from the market.

Where can you buy housing in Germany for significantly less?

Those looking for more affordable real estate should consider the eastern federal states and smaller regions of Germany. Here, the price per square meter can be several times lower than in Berlin or Bavaria, making these locations attractive for those buying a home to live in or for long-term investment.

The most affordable prices in 2026 were recorded in the following federal states:

1. Saxony-Anhalt – €987/m² for an apartment and €1,405/m² for a house;

2. Thuringia – €1,206/m² for an apartment and €1,585/m² for a house;

3. Saxony – €1,315/m² for an apartment and €1,733/m² for a house;

4. Saarland – €1,571/m² for an apartment and €1,753/m² for a house;

5. Mecklenburg-Western Pomerania – €1,936/m² for an apartment and €2,184/m² for a house.

However, a low price does not always mean a profitable investment. Before buying, it’s worth considering the region’s economic growth rate, the local job market, demographic trends, and rental demand. For example, in Leipzig and Dresden, located in Saxony, demand for housing remains consistently high thanks to the growth of the tech sector, universities, and population growth. In contrast, in smaller cities in certain eastern states, cheaper real estate may appreciate more slowly due to lower economic activity.

That is why, when choosing a home, it is important to evaluate not only its cost but also the development prospects of a specific city or region.

We previously covered the most expensive EU capitals for renting in 2026.

What is currently happening in the German real estate market?

After a prolonged downturn caused by high interest rates and expensive loans, the German real estate market is gradually stabilizing. However, experts do not expect housing prices to drop sharply in the coming years.

The main reason remains a shortage of supply.

Demand for housing, especially in major cities, significantly outpaces the rate of new construction. According to experts’ estimates, only about 200,000 new residential units will be completed in the country by 2026, although Germany would need to build approximately 320,000 houses and apartments annually through 2030 to meet demand.

Reuters analysts predict that the average cost of housing will rise by about 3–3.3% annually until at least 2028. At the same time, rents will continue to rise, especially in major cities, where vacancy rates remain very low.

For potential buyers, this means that delaying a real estate purchase for too long may not be advisable. At the same time, experts advise carefully evaluating not only the price of the property but also the region’s development prospects, the level of demand, and the availability of mortgage financing, as these factors are increasingly influencing housing prices.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

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