Where flats in Germany are cheap – and what buyers should look out for
In Germany, prices differ several times over between expensive major cities and structurally weak regions. However, low prices per square metre are often a sign of vacancy and population decline. This article puts the figures into context.
Price levels: a wide spread
According to listing data from ScreenImmos (as at 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 € for Gelsenkirchen, 1,772 € for Duisburg, 2,491 € for Essen and 2,525 € per m² for Dortmund; the median for North Rhine-Westphalia is 3,026 €. Actual purchase prices may differ considerably from asking prices.
According to the Saxony Upper Committee of Valuation Experts (Oberer Gutachterausschuss Sachsen), around 38,000 purchase contracts with a turnover of over €8.1 bn were registered in 2024; building land for individual housing cost on average about 100 € per m² in Chemnitz and the rural districts, and around 300 € in Dresden and Leipzig.
Vacancy
According to the CBRE-empirica vacancy index, the market-active vacancy rate in multi-storey residential buildings nationwide was 2.2 % 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 %, while in growing regions it was 1.4 %.
Among 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 telling than that between east and west.
Population trends
The spatial planning forecast of the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) up to 2045 expects growth above all in Berlin and its surrounding area and in western German metropolitan regions. According to it, several eastern German districts – including 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 migration and are subject to uncertainty. For a purchase decision, the data for the specific district and city are more important than averages.
What buyers should look out for
Micro-location: within the same city, vacancy can vary greatly between neighbourhoods. Check public transport, jobs, universities and amenities in the area.
Building and owners' association: when prices are low, there is often no money for maintenance. Minutes, maintenance reserve, service-charge arrears and vacancies in the building are more important than the price per square metre. Many empty flats in an owners' association mean fewer paying owners.
Letting: check the tenancy agreement, payment history and the local rent level. A high initial yield can quickly disappear through a change of tenant, vacancy or renovation costs.
Resale: in shrinking markets it can take a long time to sell a flat; price development may be negative.
Purchase costs: property transfer tax (Grunderwerbsteuer) is 5.5 % in Saxony, 5.0 % in Saxony-Anhalt and Thuringia, and 6.5 % in North Rhine-Westphalia.
Check the figures yourself
The committees of valuation experts of cities and districts publish property market reports 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, population forecasts from the BBSR and the state statistical offices as well as vacancy data at district level are helpful. Ask the property manager about vacancies 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, above all 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 at October 2026.
Is a cheap 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, the market-active vacancy rate 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 committees of valuation experts, which are based on all notarised purchase contracts.
General information, as at October 2026. It does not replace advice from a tax adviser, solicitor or notary.
