Where flats in Germany are inexpensive – and what buyers should look out for

Between expensive major cities and structurally weak regions, prices in Germany differ by a factor of several times. However, low prices per square metre are often a reflection of vacancy and population decline. This article puts the figures into context.

Price levels: a wide spread

According to listing data from ScreenImmos (as of 09.10.2026, median of advertised prices, not purchase prices), the nationwide median for freehold flats is €3,898 per m². In Saxony it is €2,598, with large differences: Dresden €3,200, Leipzig €3,125, Chemnitz €1,145.

For the Ruhr area, the same source gives €1,533 per m² for Gelsenkirchen, €1,772 for Duisburg, €2,491 for Essen and €2,525 for Dortmund; the median for North Rhine-Westphalia is €3,026. Actual purchase prices may differ significantly from asking prices.

According to the Saxony Senior Committee of Valuation Experts (Oberer Gutachterausschuss Sachsen), around 38,000 purchase contracts with a turnover of over €8.1 billion were recorded in 2024; building land for individual housing cost around €100 per m² on average in Chemnitz and the rural districts, and around €300 in Dresden and Leipzig.

Vacancy

According to the CBRE-empirica vacancy index, market-active vacancy (marktaktiver Leerstand) in multi-storey residential buildings was 2.2% nationwide at the end of 2024 (around 522,000 flats). In eastern Germany excluding Berlin it was 5.4%, in the west 1.7%. In shrinking regions, vacancy stagnated at 6.9%; in growing regions it was 1.4%.

Among the districts and independent cities, the highest rates were in Dessau-Roßlau (7.6%) and Pirmasens (7.3%), the lowest in Freiburg, Munich and Frankfurt am Main (0.1% each). The difference between growing and shrinking regions is more meaningful than that between east and west.

Population trends

The spatial planning forecast (Raumordnungsprognose) to 2045 by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) expects growth mainly in Berlin and its surrounding area and in western German metropolitan regions. According to the forecast, several eastern German districts – including the Erzgebirgskreis, Greiz and Mansfeld-Südharz – will lose more than a fifth of their population by 2045. Parts of northern Hesse, East Westphalia and Saarland are also shrinking.

Forecasts of this kind depend heavily on immigration and are subject to uncertainty. For a purchase decision, the data for the specific district and town are more important than averages.

What buyers should look out for

Micro-location: within the same town, vacancy can vary greatly between neighbourhoods. Check local public transport, jobs, universities and amenities in the area.

Building and owners' association: where prices are low, money for maintenance is often lacking. Minutes, the maintenance reserve (Erhaltungsrücklage), service charge arrears and vacancy in the building are more important than the price per square metre. Many empty flats in an association mean fewer owners paying.

Letting: check the tenancy agreement, payment history and the local rent. A high initial yield can quickly disappear due to a change of tenant, vacancy or renovation costs.

Resale: in shrinking markets, it can take a long time to sell a flat; price trends may be negative.

Additional costs: property transfer tax (Grunderwerbsteuer) is 5.5% in Saxony, 5.0% in Saxony-Anhalt and Thuringia, and 6.5% in North Rhine-Westphalia.

Checking the figures yourself

The valuation committees of the towns and districts publish property market reports (Grundstücksmarktberichte) with actual purchase prices; in Saxony they are accessible via the BORIS Sachsen portal. They are more reliable than asking prices from listings.

On the demand side, the population forecasts of the BBSR and the state statistical offices as well as vacancy data at district level are helpful. Ask the administrator about vacancy and service charge arrears in the specific building – these figures do not appear in any statistics.

Sources

https://screenimmos.de/immobilienpreise/bundesland/sachsen/
https://screenimmos.de/immobilienpreise/bundesland/nordrhein-westfalen/
https://www.medienservice.sachsen.de/medien/news/1093266/download_pdf
https://www.cash-online.de/a/wohnungsleerstand-sinkt-deutlich-auf-522-000-einheiten-708662/
https://www.bay-landkreistag.de/media/103280/vwi-11072024-bbsr-veroeffentlicht-bevoelkerungsprognose-bis-2045.pdf
https://www.haufe.de/id/beitrag/grunderwerbsteuersaetze-der-bundeslaender-uebersicht-HI3037525.html
https://www.boris.sachsen.de/

Frequently asked questions

Where are freehold flats cheapest in Germany?

According to listing data, mainly in parts of eastern Germany (e.g. Chemnitz at around €1,150 per m²) and the Ruhr area (e.g. Gelsenkirchen at around €1,530 per m²), as of October 2026.

Is an inexpensive flat automatically a good investment?

No. Low prices often reflect vacancy, population decline or the need for renovation. Location, condition and lettability are decisive.

How high is vacancy in eastern Germany?

At the end of 2024, market-active vacancy in multi-storey residential buildings in eastern Germany excluding Berlin was 5.4% (CBRE-empirica).

Where can I find actual purchase prices instead of asking prices?

In the property market reports of the local valuation committees, which are based on all notarised purchase contracts.

General information, as of October 2026. It does not replace advice from a tax adviser, a lawyer or a notary.