Germany continues to attract international residents for good reason: the country offers abundant work and study opportunities, a high quality of life, and beautiful landscapes. At the end of 2024, official statistics reported around 14.06 million foreign nationals living in Germany, with more than one in four residents—an estimated 21 million people—having a migration background. For newcomers, renting is often the first step, but many soon face the question of whether it’s time to invest in a property.
Experts argue that buying a home in Germany is not only an emotional milestone but also a practical financial decision. Johannes Zschernig, a mortgage specialist from Baufi24, explains that owning property represents “an investment in your future.” Rising rents and a shortage of affordable housing make homeownership increasingly attractive. Germany is currently facing a housing deficit, with only about 215,000 new homes expected to be built in 2026—far below the government target of 400,000. This scarcity is especially pronounced in cities like Berlin, Munich, and Frankfurt, where the competition for rental units drives prices up.
Property prices, after declining between mid-2022 and 2024, have begun rising again. Single-family homes cost around 4.3 percent more at the end of 2025 than the previous year, though prices remain below historical peaks. Analysts expect further increases over the next four to five years, making it advantageous for potential buyers to act sooner rather than later. Interest rates are also moderate by historical standards, ranging from 3.3 to 4 percent, and are projected to rise slightly but remain manageable. This environment makes 2026 an opportune time to enter the housing market.
Beyond pricing and rates, energy efficiency regulations offer both challenges and opportunities for buyers. New EU rules provide transparency on the energy performance of properties, enabling buyers to negotiate prices on older homes requiring “green” renovations. Financial support is also available, including subsidies for heat pumps, insulation, new windows, and roof improvements. Families building new homes can access government-backed loans and grants, further reducing the cost of sustainable living.
International buyers often worry about navigating Germany’s property market, which can involve notary fees, taxes, and broker costs. Zschernig reassures that foreign residents, particularly those with higher education and salaries, are well-positioned to access premium banking services. Speed and preparation are critical, as desirable properties often remain on the market for only a short time. Working with experienced mortgage brokers, such as Baufi24, can help buyers secure financing quickly, evaluate property value, negotiate better deals, and avoid scams.
2026 presents a strong opportunity for internationals to buy property in Germany. Despite rising prices and a competitive market, moderate interest rates, financial support for energy-efficient renovations, and expert guidance make it a favorable time to invest. Homeownership not only provides stability and independence but also represents a long-term financial investment, allowing newcomers to make Germany truly their home.
