🇩🇪 Germany

Germany's real estate market underwent a dramatic transformation over the past decade, with Berlin, Munich, and Frankfurt seeing price increases of 100-200% before a correction in 2022-2023 due to rising interest rates. Despite the cooldown, German property remains attractive for its strong tenant protections, stable economy, and central European location. Berlin stands out as the cultural capital with relatively affordable prices compared to other European capitals, while Munich commands Germany's highest prices at over €8,000/m².

Germany is famously a nation of renters — only about 50% of Germans own their homes, the lowest rate in Western Europe. This creates a robust rental market with yields of 3-5% in major cities. Foreign buyers face no restrictions on purchasing property, and the legal system is transparent and well-regulated. Transaction costs are significant, however, with real estate transfer tax (Grunderwerbsteuer) varying from 3.5% to 6.5% depending on the state, plus notary and registration fees of about 2%.