Germany’s medium-sized cities are increasingly attracting the attention of homebuyers as an affordable alternative to major cities. A recent analysis by the property portal Immowelt of asking prices for existing flats in selected medium-sized cities shows that the dream of owning a home remains achievable there. Flat prices rose year on year in 108 of the 120 cities with populations of between 20,000 and 100,000 examined, by almost 15 per cent at the upper end. Nevertheless, people looking for a home in many medium-sized cities continue to benefit from comparatively moderate prices. The analysis compared asking prices for owner-occupied flats (75 square metres, three rooms, first floor, built in the 1990s) in 120 selected medium-sized cities on 1 March 2026 and 1 March 2025.
“Germany’s medium-sized cities offer an affordable alternative for people who find major cities too expensive but do not want to give up the benefits of urban life,” says immowelt Managing Director and COO Dr Robert Wagner. “Those who look beyond the boundaries of major cities will often find properties that remain affordable even for average earners.”
Medium-sized cities up to 50 per cent cheaper than major cities
Although prices have risen in most medium-sized cities, they continue to offer realistic purchasing opportunities, particularly compared with expensive major cities. While existing flats in Munich cost more than 8,000 euros per square metre on average, asking prices in the metropolitan region’s medium-sized cities are generally much lower. In Landshut, for example, less than an hour from Munich by train, existing flats have actually fallen in price by 4.2 per cent against the general trend and, at 4,120 euros per square metre, cost only around half as much on average as in the Bavarian capital.
The situation is similar in Hamburg’s commuter belt. With prices in the Hanseatic city at around 6,000 euros per square metre, medium-sized cities in Schleswig-Holstein such as Norderstedt (4,121 euros; +2.1%) and Elmshorn (2,979 euros; +1.6%) offer affordable alternatives.
In Berlin too, where the price per square metre is approaching the 5,000-euro mark, it is worth looking at the wider surrounding area. An hour from the capital by train, buyers in Brandenburg an der Havel (2,455 euros; +3.0%) can find flats that cost only around half as much on average as in Berlin.
Prices rise by up to 15 per cent within one year
North Rhine-Westphalia stands out when price trends in medium-sized cities are considered: seven of the ten cities with the strongest increases are located there. Flat prices rose most sharply in the north-east of the state. Bad Oeynhausen (2,379 euros), Herford (2,394 euros) and Minden (2,023 euros) each recorded the largest increase among all the cities examined, at 14.7 per cent, yet remain affordable. The high percentage increases can therefore also be explained by the comparatively low starting level.
Asking prices have also risen noticeably in several medium-sized cities in Lower Saxony, most sharply in the coastal cities of Emden (2,092 euros) and Wilhelmshaven (2,151 euros), each up 14.3 per cent.
Plauen cheapest, highest prices in Konstanz
People looking for a home will find the least expensive flats in medium-sized eastern German cities. In Plauen, Saxony, the price per square metre is just 945 euros (+5.1%). Buying a flat is also very feasible in Zwickau (1,137 euros; +1.6%), Gera (1,242 euros; +5.1%) and Görlitz (1,308 euros; +7.0%).
The most expensive medium-sized city is Konstanz on Lake Constance, where buyers must expect to pay an average of 5,648 euros per square metre (−1.0%) for an existing flat. Rosenheim in Bavaria (5,213 euros; +6.3%) also breaks the 5,000-euro mark, while Tübingen (4,963 euros; +1.5%) is just below it.