High price differences: real estate opportunities in major German cities

High price differences: real estate opportunities in major German cities

The latest evaluation of the German Real Estate Index (Greix) shows interesting price differences on the German real estate market. In many major cities across the country, buyers can make significant savings by focusing on outlying locations or less popular neighborhoods. The price per square meter in such areas can be up to 50 percent lower than in the city center. This insight opens up opportunities for investors looking for affordable properties.

The report shows that almost all major German cities still offer relatively inexpensive locations for potential buyers, with one exception – Munich. In the Bavarian capital, the cheapest district is more expensive than the most expensive district in all other major cities in the country. This highlights the price differences and challenges faced by property buyers in Munich. Compared to other cities, Perlach-Berg am Laim and Altstadt-Maxvorstadt, for example, embody extreme contrasts in terms of prices per square meter.

By analyzing data from 19 German cities in 2023, it was found that price differences vary significantly within a city. The researchers emphasize the importance of a cool financial analysis when deciding between buying or renting a property. It often turns out that in many cases renting is cheaper than buying. A formulated recommendation based on a simple financial calculation can help determine the profitability of a purchase and provide insight into the current housing situation.