A new study of the housing market shows: Germans paid an average of 264,000 euros for their own home. But that’s still cheaper than renting. If you really want to save, you have to go to the country.

Although property purchase prices continue to rise, renting is more expensive in the long run.

Dhe construction rates are now apparently staying low for a long time. Isn’t that a reason for more people than previously thought to buy their own house? The Association of Sparda Banks in Germany, together with the Institut der Deutschen Wirtschaft (IW) in Cologne and the Institut für Demoskopie Allensbach, examined the German housing market – and identified clear differences in the relationship between rents and purchase prices depending on the region. The study, which was exclusively available to the FAZ, states that, taking into account purchase prices, ancillary purchase costs, interest and maintenance costs in relation to rent, in most regions buying is cheaper than renting in the long term.

The advantage of buying varies, however, depending on how much the purchase prices and rents have recently increased in the various regions. There are above-average increases in property prices in 23 regions. The price changes since 2005 have been between minus 4.8 percent in the Kyffhäuserkreis in Thuringia and plus 128.7 percent in Berlin. The capital was followed in price increases by the district of Munich (plus 117 percent), the city of Munich (plus 115.9 percent), Augsburg (plus 111.6 percent) and Hamburg (plus 109.7 percent). In terms of square meter prices, Berlin is still just ahead of Cologne as the cheapest metropolis in Germany – but the city is recording the strongest price increase.