Even though home ownership rates in Germany are relatively low, with around 52% of the population opting for rental accommodation, the stability of the property market makes it an attractive investment choice. Before you can even start looking for a house, however, there are some important things to consider.
The guides in this section look at the process of buying a house in Germany, from initial considerations to mortgage applications, exchanging contracts and finally getting your keys.
Purchasing property in Germany
In principle, foreigners are allowed to purchase property in Germany on any kind of residence permit. However, the more secure your position (i.e. if you have a long-term work contract or even a permanent residence permit), the more choice you will have in terms of mortgage provider.
As of 2024, the average price per square metre for houses is around 2.720 euros for houses and 3.128 euros for apartments, according to the property search site immowelt. However, that average figure conceals strong regional differences. In Berlin, for instance, the average price per square metres is 4.485 euros for houses and 4.859 euros for apartments. In Saxony, it's a lot lower at 1.686 euros per square metre for houses, and 1.691 euros per square metre for apartments.
Why buy a house in Germany?
If you are torn between buying and renting a house in Germany, consider the following points:
- Owning your own home gives you a sense of stability and security.
- Homeowners have unlimited control over their property and are free to choose their utility providers, make structural changes, redecorate and have pets.
- Buying a home is a sound financial investment, especially if you have unused capital sitting in a bank account, where it is unlikely to increase in value.
- Germany, in particular, is a good place to buy, with low interest rates on mortgages and a very stable property market.
Property buying checklist
Buying a property is one of the biggest financial decisions you’ll ever make, so ensure that you are fully prepared by doing your research. If you aren’t quite sure where to start, consider the following points:
- Financial requirements: Work out what you can afford. Take account of your current expenditure on food, childcare, taxes and insurance. Would you be eligible for a German mortgage and, if so, how much would your monthly payments be? Do you need to save up for a bigger deposit to reduce your mortgage costs? Are you eligible for any government homeownership loans or subsidies?
- Mortgage requirements: Consult with a mortgage advisor to get an estimate of your maximum budget for a house before you start looking. Don’t be tempted to go for a property outside of your budget range, as your mortgage application is likely to be rejected.
- Where to buy: Many expats in Germany opt to buy property in cities, but there are great savings to be made by looking further afield. Ask yourself what things are must-haves, and what can you compromise on? Are you willing to sacrifice larger bedrooms and a garden for closer proximity to shops and amenities? Do you need to be close to schools and public transportation?
- Utilities and additional costs: How much would the house cost to run? If you’re buying an apartment, are you expected to pay additional costs or service charges (Nebenkosten) to the building’s management? How much is the current owner spending on utilities like energy, water and phone line? Is there a fast internet connection? How much would home insurance cost?
- Buy-to-let properties: If you’re buying with the intention of renting out the property, consider how much money rentals can fetch. Are there already tenants in place? Remember that German rental contracts generally favour the tenant, which can make it difficult for landlords to turn properties over to new uses.
House-hunting in Germany: Hints & tips
To help you track down your dream home, and make sure your purchase is the right one, we’ve put together these hints and tips:
- Get ahead of the competition by making friends with your real estate agent. They can get you into houses that have only just come onto the market.
- At house viewings, don’t be afraid to ask too many questions: how many viewings has the house had? Have there been any offers? How long has it been on the market? Why are the sellers moving? Is there a chain?
- Try not to visit too many properties in one day and take photos that you can refer back to later.
- View the property at different times of the day to get an idea what the place looks like in different lighting and what the neighbourhood is like.
- Note that properties in Germany come completely unfurnished, i.e. without a kitchen or even light fittings. See if you can negotiate with the current owners to buy fixtures off of them. Otherwise you will probably need to buy your furniture from scratch.
German real estate agents
A real estate agent can be a useful contact for anyone trying to navigate the German housing market. An agent can help you with buying a house, searching for rental properties, or even property management. Check out our list of expat-friendly real estate agents, consultants and brokers in Germany.
Mortgage brokers in Germany
Most people buying a house will need a mortgage. Rather than going directly through a bank, many expats in Germany choose to consult with an English-speaking mortgage advisor, who can offer tailored advice and guide you through the whole application process.
Mortgages in Germany
What are the specific requirements in Germany? What types of mortgages are available and what is the process for getting one? Learn more in our guide to German mortgages for expats.
Taxes & costs involved in buying a house
Inevitably, buying a property isn’t simply a matter of taking out a mortgage and putting an offer on your dream home. There are several other property taxes and fees involved. Avoid the unpleasant surprise of unforeseen costs by learning what to expect.
Allowances & subsidies
Buying a home can be expensive. For those who are worried about saddling themselves with unaffordable costs, the German government has made a range of subsidies, loans and allowances available. This includes help with the cost of purchasing or building a new home, or making your home more environmentally-friendly.
Buy-to-let properties in Germany
There is no restriction on foreigners buying property in Germany, no matter whether they live in Germany or elsewhere. You can, therefore, buy property as a non-resident with the expressed purpose of renting it out, or you can choose to rent out your own home if you move away from Germany. While rental properties can be a good source of income for homeowners, rental contracts in Germany are pro-tenant, meaning that landlords have strict obligations towards their renters.