German home buyers face growing affordability challenges

A survey conducted by mortgage broker Interhyp among about 1,000 German adults aged 25‑65 found that 46 % consider housing in their region barely affordable, rising to 52 % among those actively planning a purchase. The company's CEO Jörg Utecht said, “Der Wunsch nach Wohneigentum ist in Deutschland ungebrochen, aber die Leistbarkeit ist zuletzt bei einigen Kaufinteressierten unter Druck geraten.” Respondents now budget an average of €384,000 for a home, up from €349,000 a year earlier, and more than one‑third estimate that saving for a purchase will take over ten years.

Separate analysis of typical transaction costs shows German buyers must also plan for additional expenses of roughly 10‑15 % of the purchase price. These include Grunderwerbsteuer (3.5‑6.5 % depending on the state, e.g., 3.5 % in Bayern), notary and land‑registry fees (about 1‑1.5 % of the price), possible mortgage‑registration fees (0.5‑1 %), broker commissions (3‑7 %), and connection fees for utilities as well as appraisal costs ranging from €500‑€1,500. Altogether, these ancillary costs can add €50,000‑€75,000 to a €500,000 house purchase.