Immobilien: Paris abgehängt – diese deutsche Metropole ist die teuerste Wohnstadt Europas

Increasing rents and higher property prices are worsening the situation in European housing markets, according to calculations from consulting firm Deloitte's Property Index, unveiled on Wednesday. Munich has now been named the most expensive metropolis in Europe, moving up from third place last year. The study evaluates listing prices for new construction in 71 major European cities and reveals that three more German cities rank among the top ten most expensive.

Germany is therefore among the priciest real estate markets in Europe. On average, property prices for new builds grew by more than eight percent nationwide, from €4,800 to €5,200 per square meter. In Munich, buyers now pay €11,200, which is around €400 more than last year. This surpasses Paris, which was previously number one, now at €5,754 per square meter.

Munich's price gap to other cities is significant, even compared to other major German cities. A 100 square meter new build apartment costs €1.12 million in Munich based on the average listing price, without property tax, notary fees, or potential realtor commissions. In comparison, a similarly sized new build apartment in Frankfurt or Hamburg can be had for €770,000.

The price difference is therefore €350,000. Four German metropolises make it into the top ten most expensive markets, with Hamburg, Frankfurt, and Berlin sharing fifth place at €7,700 per square meter, and Berlin at seventh with €7,500. Munich stands out compared to Prague and Copenhagen, where average prices are €7,352 and €7,001 per square meter, respectively.

Even Oslo, often considered a very expensive location, falls significantly short at €6,930. Deloitte's Nina Schrader notes that current price and rental developments indicate that the German housing market is no longer primarily driven by cyclical factors, but by a structural supply shortage. "The consequences of this development are becoming increasingly socially noticeable: housing is becoming increasingly unaffordable for more households and is developing into a central location and competitiveness factor for cities and regions."

Vienna does not make it into the top ten, with homes costing an average of €6,711 per square meter. London's central area reaches €6,620. However, Deloitte uses actual transaction prices for London, while Munich uses average listing prices for new builds, making the comparison only limited. The rankings show the price levels of the examined markets without adjusting for apartment size, amenities, and location, making a fully uniform comparison of identical apartments impossible.

An unexpected result of the study is Paris' placement at €5,754 per square meter, still below Berlin, Hamburg, and Frankfurt. Even Madrid, Lisbon, and Helsinki remain far behind Munich. This does not necessarily mean that housing in Paris would be more affordable, as the study mainly focuses on new builds. The lack of supply in historic downtown areas often results in significantly different price levels for existing housing.

The shortage of new construction is driving housing markets, as noted by Schrader. "Europe's housing real estate markets are in a phase of slow recovery from high inflation, high interest rates, and significant market fluctuations." While economic conditions differ significantly, the study findings suggest that European housing markets are increasingly becoming more stable and predictable after years of volatility.

According to Deloitte's experts, the situation for homebuyers in many European countries is expected to worsen in 2026, with 19 of the 24 countries surveyed forecasting further increases in property prices. Only five countries expect relatively stable prices. No country is expected to see a drop in prices.