Real estate prices in focus: Where are there still bargains in Germany?

Real estate prices in focus: Where are there still bargains in Germany?

In Germany, real estate prices sometimes show amazing developments. A current study by the Sparda banking group reveals important trends. Only 19% of Germans believe that the purchase of a property is not worthwhile. This means that the majority still stick to the idea of ​​living in their own four walls. The average square meter price for homes is now 3,081 euros, while buyers spend an average of 6.4 times their annual budget net income for a family home, which corresponds to around 360,000 euros. This gives you an average of 117 square meters of living space.

A look at the differences between city and country shows that real estate prices in urban areas are about 51% higher than in rural regions. The cheapest prices can be found in the Kyffhäuserkreis in Thuringia: there you can already purchase 473 square meters for 360,000 euros. The districts of Mansfeld-Südharz and Hildburghausen also offer space for lots of space despite relatively low prices.

price trends and future outlook

The situation in the seven largest cities in Germany, on the other hand, is rather tense. There, the square meter price is an average of 5,971 euros. For 360,000 euros you can only buy 62 square meters here. The price in Munich is particularly high, where you only get 43 square meters for the same amount. The Hildburghausen district is the most affordable region in Thuringia, where the purchase of a property only takes 1.8 annual income. Interestingly, the current data also show a striking price increase for condominiums: In the period from 2012 to 2025, the price rose by an incredible 109.4%.

A particularly heated pavement is the Märkisch-Oderland district, which has recorded the highest price increases with an increase of 187.5% since 2012. Experts expect that an increase in real estate prices will be expected, especially in southern Germany, especially in Baden-Württemberg and Berlin-Brandenburg.

market development and forecasts

The demand for residential properties is currently in trend. According to [Engel & Völkers] (https://www.engelvoelkers.com/de-de/research/immobilienpreprei- Development/), commercial activity in 2024 increases after a low point. Despite declining construction activity and stagnating building permits, buyers benefit from an improved financing situation: since August 2024, construction interest has fallen to 3%, which is above a percentage point below the previous year. The demand is expected to continue to increase, which could result in a combination with the extended selection of real estate prices.

The development of real estate prices remains exciting and raises questions. Admittedly, the uncertainties on the market cannot be denied, but the desire for their own living space remains a desirable goal for many in the face of rising rents.