Which German cities have the cheapest real estate?

Which German cities have the cheapest real estate?

The question “Where is real estate cheapest in Germany?” concerns not only expats and students, but also investors looking for affordable entry tickets to the market. Germany is one of the largest economies in Europe, but housing prices vary greatly depending on the region.

While in Munich or Hamburg a square meter can cost between €7,000 and €10,000, prices in many cities of Eastern Germany or old industrial centers in the West are significantly lower.

Why do prices differ?

  • Demographics – population decline in some regions.

  • Economic activity – weaker housing demand, fewer jobs.

  • Infrastructure – cities without international companies and universities are traditionally cheaper.

  • Age and condition of buildings – many houses require renovation.

Cities with the cheapest real estate in Germany

  1. Chemnitz (Saxony)

    • Average apartment price: €1,200–1,500/m²

    • Multi-family house: from €300,000–400,000 for 6–8 flats

    • Reason: low demand, demographic decline, but growing culture and education sector.

  2. Magdeburg (Saxony-Anhalt)

    • 2-room apartment: from €80,000–100,000

    • Suburban house: from €150,000

    • Growth outlook: logistics and transport hub connecting Berlin and Hanover.

  3. Halle (Saale, Saxony-Anhalt)

    • Average rent for 1-room apartment: from €300/month

    • Purchase price per m²: about €1,500

    • Investor interest – university city with stable rental demand.

  4. Duisburg & Gelsenkirchen (North Rhine-Westphalia)

    • Apartment price: from €1,400/m²

    • Multi-family houses (8–12 flats): €500,000–700,000

    • Part of the Ruhr area, still affordable due to housing oversupply.

  5. Leipzig (Saxony)

    • Apartments: from €2,000/m²

    • Multi-family house (10–12 flats): €800,000–1,200,000

    • Strong growth potential thanks to students, creative industries, and business relocations from Berlin.

  6. Erfurt (Thuringia)

    • 1-room apartment: from €100,000

    • Small houses: €200,000–250,000

    • Capital of Thuringia, still cheaper than neighboring western states.

Comparative price table (2025)

CityApartments (€/m²)Multi-family housesSingle-family houses
Chemnitz1,200–1,500from €300,000from €120,000
Magdeburg1,400–1,600from €350,000from €150,000
Halle (Saale)~1,500from €400,000from €160,000
Duisburg / Gelsenkirchen1,400–1,700€500,000–700,000from €180,000
Leipzig2,000–2,500€800,000–1,200,000from €250,000
Erfurt~1,800from €450,000€200,000–250,000
Do You Need a Notary and a Lawyer When Buying Real Estate in Germany?
2 days ago

Do You Need a Notary and a Lawyer When Buying Real Estate in Germany?

Do You Need a Notary and a Lawyer When Buying Real Estate in Germany?

Invest in Leipzig and Dresden – Real Estate with a Future
3 days ago

Invest in Leipzig and Dresden – Real Estate with a Future

Invest in Leipzig and Dresden – Real Estate with a Future

Germany’s Rent Cap 2026 (Mietpreisbremse): What Will Change and How Investors Can Prepare
3 days ago

Germany’s Rent Cap 2026 (Mietpreisbremse): What Will Change and How Investors Can Prepare

Germany’s Rent Cap 2026 (Mietpreisbremse): What Will Change and How Investors Can Prepare

Mortgage in Germany for Foreigners: Step by Step, Without Myths and With Real Examples
5 days ago

Mortgage in Germany for Foreigners: Step by Step, Without Myths and With Real Examples

Mortgage in Germany for Foreigners: Step by Step, Without Myths and With Real Examples

How to Correctly Calculate Property Returns in Germany: Real Cases and Calculations
1 week ago

How to Correctly Calculate Property Returns in Germany: Real Cases and Calculations

How to Correctly Calculate Property Returns in Germany: Real Cases and Calculations

What Documents and Requirements Does a Foreigner Need for a Mortgage in Germany?
1 week ago

What Documents and Requirements Does a Foreigner Need for a Mortgage in Germany?

What Documents and Requirements Does a Foreigner Need for a Mortgage in Germany?