Top 10 Most Expensive Cities for New Apartments in Germany

The German real estate market continues to experience significant price increases, particularly in the new apartment segment. According to a recent report by Capital.de based on data from Landesbausparkassen (LBS), cities with populations over 100,000 were analyzed to determine the average prices per square meter for new apartments. The findings highlight a persistent housing shortage, high demand, and regional disparities in purchasing power.

Top 10 Cities with the Highest Prices for New Apartments

Munich
Average price: €11,000/m² (range: €9,000–€17,000)
An 80 m² apartment costs approximately €880,000. Munich remains the most expensive city, with no low-cost segments available.

Stuttgart
Average price: €8,750/m² (range: €7,240–€10,250)
An 80 m² apartment costs around €700,000.

Berlin
Average price: €8,375/m² (range: €6,575–€9,850)
Despite social housing initiatives, Berlin ranks third due to high demand and limited supply.

Freiburg im Breisgau
Average price: €7,200/m² (range: €6,000–€10,000)
Known for its green spaces, Freiburg is among the most expensive cities.

Hamburg
Average price: €7,100/m² (range: €4,350–€17,000)
Prices vary significantly by district; an 80 m² apartment can cost between €348,000 and €1.3 million.

Wiesbaden
Average price: €7,100/m² (range: €5,650–€8,300)
The capital of Hesse attracts affluent buyers from Frankfurt and the Rhine-Main region.

Ulm
Average price: €7,200/m² (range: €6,000–€9,000)
Despite its smaller size, Ulm shows strong demand for quality new constructions.

Mainz
Average price: €7,000/m² (range: €5,000–€9,500)
Proximity to Frankfurt makes Mainz appealing to buyers working in the financial center.

Erlangen
Average price: €7,000/m² (range: €5,200–€8,700)
A scientific hub with high housing prices.

Augsburg
Average price: €6,800/m² (range: €5,500–€8,600)
An 80 m² apartment costs approximately €544,000.

Real Estate Market Overview

The ranking of the most expensive cities for new apartments reflects broader trends in the German housing market: a construction deficit, rising prices, and limited housing availability. According to the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), Germany needs 320,000 new apartments annually, but only 216,000 permits were issued in 2024—the lowest since 2010. This gap between supply and demand is exacerbated by population growth and slowed construction.

In cities like Berlin, Munich, Hamburg, and Frankfurt, several projects have been halted due to high costs and interest rates. Lengthy approval processes further hinder development.

Deutsche Bank reports that even with lower mortgage rates, the problem persists. By the end of 2024, prices began to rise: +1.9% annually, including +2.5% for apartments and +2.2% for houses. According to Centrarium, in January 2025, the average housing price in Germany was €4,161/m². In Berlin, new constructions averaged €8,280/m², while existing homes were €5,380/m². Immowelt data shows that existing apartments cost €3,162/m², and houses €2,767/m².

Rent prices are also increasing: the national average is €13.55/m² (+6.4%), with Berlin experiencing a +16.1% rise. Many are forced to rent due to unaffordable mortgages. Reuters predicts a 3.5% price increase in 2025, contingent on economic risks.

Purchasing Power

Housing prices in the top-ranking cities reflect not only a shortage of new constructions but also regional purchasing power levels. High square meter costs correspond to higher income levels, especially in economically developed states like Bavaria, Hesse, and Baden-Württemberg. Suburbs of Munich and Frankfurt lead in living standards.

According to GfK, in 2025, the average disposable income per capita in Germany was €29,565 (+2%). However, real income growth is constrained by inflation: food prices rose by 4.1%, and utilities by 3.5%.

Thus, purchasing power remains a key factor. As long as the gap between incomes and prices persists, and new constructions remain insufficient, homeownership remains an unattainable goal for many.