The Cheapest City in Germany to Buy a House in 2025

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Germany is one of the most popular destinations for people to relocate to or invest in for their future but with the current trend of rising housing prices, finding the cheapest city in Germany to buy a house in 2025 can be a bit of a challenge.

As housing prices continue to rise in many major German cities, those in search of affordable accommodations are left with few options. However, there are still some locations where you can still buy a property without breaking the bank.

In this article, we will take a closer look at some of the cheapest cities in Germany to buy a house in 2025. We’ll consider the cost of housing, the popularity of the area, and the quality of life to help you find the best place to invest in.

Is it Better to Rent or Buy a House in Germany in 2025?

In Germany, renting is a popular choice for long-term accommodation, rather than buying and gradually upgrading to larger homes. Therefore, if you are new to the country, renting can be a smart decision as it allows you to weigh your options, explore neighborhoods, and take your time to decide whether purchasing is the best route for you.

The rental market in Germany can be highly competitive, particularly in big cities where renting dominates the market. Renters need to provide documentation such as identification, credit reports, and income proof and may require a guarantor if their income is unsteady.

The minimum rental period is typically two years or an indefinite period that can be terminated by either party. To get started in owning a property in Germany, you need to understand how the property market and property prices work in this area. This will help you locate the cheapest city in Germany to buy a house.

German Property Market and Property Prices

When it comes to buying property in Germany, the price varies depending on the location and the type of property. Over the last decade, the German housing market has seen a significant increase in prices, with a 94% rise between 2010 and 2024 compared to the EU average of 45%.

There have also been recent short-term price increases, with data from Destatis showing over 10% year-on-year increases for four consecutive quarters in 2021 and 2022. However, some experts predict a slowdown soon, with a Reuters survey suggesting a 7% rise in 2022, followed by a 3% rise in 2023 and a 2% rise in 2024.

In terms of location, properties in some German cities can be cheaper than in other European countries, with apartments being the more common type of property in cities, and houses being more common in suburban areas.

Generally, rural areas tend to have lower prices than cities. According to Mydolcecasa, the average price of a house for sale in Germany in 2024 is $562,000, and the price to buy an apartment in Germany is on average $253,600. Saxony was found to be the most affordable location, while Munich was the most expensive.

Cheapest Cities in Germany to Buy a House in 2025

In this section, we’ll take a closer look at the cheapest city to buy a house in Germany in 2025.

Some of the cheapest cities in Germany to buy a house in 2025 are listed below;

Leipzig
Duisburg
Chemnitz
Magdeburg
Halle
Bremerhaven
Görlitz
Cottbus
Berlin

1. Leipzig

Leipzig is one of the most affordable cities in Germany, and it’s not just when it comes to housing. The city also has a low cost of living, making it an attractive option for many people.

It is located in the eastern part of Germany and has a rich history and culture. The housing market in Leipzig is very reasonable, with properties selling for as low as €800 per square meter. However, the city is also growing in popularity, which means that housing prices may increase in the coming years.

Property prices in Leipzig are amongst the lowest in Germany, and even lower than other popular European property markets. However, this is set to increase steadily as growth progresses. Leipzig is one of the cheapest cities in Germany to buy a house in 2025.

2. Duisburg

Duisburg is located in the western part of Germany, in the heart of the Ruhr region. The city is known for its industrial heritage, and the housing market is very affordable.

Properties in Duisburg are selling for an average price of €1,200 per square meter, which is significantly lower than the average for the rest of the country. The city also has excellent public transportation, which makes it easy to get around.

3. Chemnitz

Chemnitz is another city located in the eastern part of Germany, with a low cost of living and affordable housing prices. The city has experienced significant economic growth in recent years, which makes it a great option for people looking for a more affordable home in a growing area.

The average price for properties in Chemnitz is €1,000 per square meter, making it one of the best bargains in Germany. This makes Chemnitz one of the cheapest cities in Germany to buy a house in 2025 although this is subject to change with time.

4. Magdeburg

Magdeburg is a city that has been growing in popularity in recent years. It is located in the eastern part of Germany, and it is a great option for people looking for affordable housing prices.

Properties in Magdeburg are selling for an average price of €1,300 per square meter, which is relatively low compared to other cities in the country.

5. Halle

Halle is located in the eastern part of Germany and is another great option for people looking for affordable housing prices. The city has a rich history and culture, and it is a great place to live for people who enjoy outdoor activities. Properties in Halle are selling for an average price of €1,200 per square meter, making it an attractive option for people looking to invest in property in Germany.

6. Bremerhaven

Bremerhaven is located on the coast of the North Sea and is an excellent option for people looking for affordable housing prices in a beautiful setting. It is a port city, which means that it has a strong economy and plenty of job opportunities. Properties in Bremerhaven are selling for an average price of €1,500 per square meter, which is very reasonable considering the city’s location and amenities.

7. Görlitz

Görlitz is a city located in the eastern part of Germany, near the border with Poland. The city has an excellent transport infrastructure and is a great option for people looking for affordable housing prices. Properties in Görlitz are selling for an average price of €1,100 per square meter, making it an excellent location for people looking to invest in property in Germany.

8. Cottbus

Cottbus is a city located in the eastern part of Germany, and it is one of the cheapest cities to buy a house in the country. The city has plenty of green spaces, making it a great option for people who enjoy outdoor activities.

Properties in Cottbus are selling for an average price of €900 per square meter, making it an excellent option for people looking for affordable housing prices in Germany. Generally, the Price per Square Meter to Buy an Apartment in the City Centre, Cottbus is 2,647.70€ while the Price per Square Meter to Buy an Apartment Outside of the Centre Is 1,768.53€.

Although this may not seem like due to the cost of living in this area compared to the other cities in Germany, Cottbus makes it to the list as one of the cheapest cities in Germany to buy a house in 2025.

9. Berlin

If you’re looking for a city that is still relatively cheap, yet bursting with potential, Berlin may be the ideal spot. The German capital has long been a magnet for artists, writers, and celebrities alike, thanks to its diverse cultural scene and vibrant nightlife. And, if you want to own a piece of the city, you’ll find plenty of affordable opportunities to do so.

One of the reasons Berlin has remained so affordable is because, historically, it has been somewhat off the radar. Many investors and homebuyers have traditionally looked to more established locations, such as Munich or Frankfurt, and left Berlin as a bit of an afterthought.

But, as the city becomes more and more popular, this is all starting to change. Many creative people who might otherwise have moved to more expensive areas of Germany are starting to make Berlin their home. This is driving up demand for property and pushing prices higher.

To purchase a property in Berlin, one must expect to pay an average of 5,480 € per square meter for a used property at the beginning of 2024. Conversely, the cost of newly constructed properties is substantially higher, amounting to 8,540 € per square meter.

FAQs on Cheapest City to Buy a House in Germany

1. Which city in Germany has the cheapest houses?

The following cities in Germany have the cheapest houses;

The Bielefeld City of Germany.
The Frankfurt City of Germany.
The Halle City of Germany.
Passau City, Germany.

2. What is the cheapest area to buy a house in Germany?

Generally, rural areas tend to have lower prices than cities. According to Immowelt, the average price per square meter for a house in Germany in early 2022 was €2,800, while flats cost €3,200. Saxony was found to be the most affordable location, while Munich was the most expensive.

3. Where is the best city in Germany to buy a house?

In terms of the best cities, Munich comes in first. The capital of Bavaria is a global city with a convenient location and is one of the nation’s information hubs. This time, enough to reach the top of the rankings after three consecutive second-place finishes.

4. Which city in Germany has the highest cost of living?

The following cities are considered the most expensive in Germany!

Stuttgart: €15.31 per m2.
Freiburg: €14.88 per m2.
Dusseldorf: €14.20 per m2.
Mainz: €14.17 per m2.
Heidelberg: €14.14 per m2.
Hamburg: €14.04 per m2.
Darmstadt: €13.84 per m2.

Conclusion

Finding the cheapest city in Germany to buy a house in 2023 requires a combination of factors, including housing prices, location, amenities, and quality of life. While these nine cities are some of the most affordable options available, it’s essential to do your research before you make a decision.

Take a closer look at each location to see if it fits your needs and requirements. Consider the job market, schools, and proximity to public transportation. With careful consideration and research, you can find the ideal place to purchase a home in Germany.

Hope you found this article helpful, need any assistance in choosing the best city to apply to for jobs in Germany? Feel free to leave us a comment and someone from our team will reach out to you.