While perceptions vary, Germany is generally considered a relatively affordable place to live on a global scale.¹

Although specific rankings can fluctuate annually based on factors like currency exchange rates, major German cities consistently appear in global cost-of-living surveys. According to Mercer’s 2024 Cost of Living City Ranking, Berlin is now the most expensive city in Germany for international assignees, ranked 31st globally. Frankfurt is ranked 35th and Munich 38th. This marks a significant change, as Munich previously held the top spot among German cities for cost of living. Frankfurt rose 13 places in the ranking compared to last year, while Munich’s position remained stable.

Berlin

Berlin is known for its green spaces, with parks, forests, lakes, and rivers covering a significant portion of the city. Accommodation is often spacious and relatively more affordable compared to other major German cities, particularly in areas that were formerly part of East Berlin.⁴ Some neighborhoods to consider include Friedrichshain (a newly gentrified area adjacent to Kreuzberg), Kreuzberg (a traditionally Turkish enclave, now fashionable and multicultural), Prenzlauer Berg (popular with artists and students), Charlottenburg (an upscale area in West Berlin), Wilmersdorf (an expensive district bordering Grunewald), and Grunewald (Berlin’s most prestigious area).⁴

Hamburg

Located in northwestern Germany, Hamburg is the country's second-largest city and the second-biggest port in Europe. The port has fostered a cosmopolitan environment and made it a hub for expats and businesses. With over 2,000 bridges crossing its canals and waterways, Hamburg is the economic heart of northern Germany and offers numerous employment opportunities for expats.⁵ Altona (close to central Hamburg), Blankenese (a prestigious neighborhood on the Elbe River), and Wandsbek (popular with families) are among the most notable neighborhoods.⁵ In Mercer’s 2024 Cost of Living City Ranking, Hamburg remains one of Germany’s most attractive cities for expats, offering a high quality of life and ranking among the top German cities for livability and international assignments.⁶

Munich

Munich is a popular destination for both tourists and expats. Despite being one of the most expensive cities in Germany, it remains more affordable than many other major European cities.⁷ Monocle Magazine named Munich the most liveable city in the world in 2018.⁸ Neighborhoods such as Neuperlach (affordable housing), Pasing (quiet and family-friendly), Bogenhausen (near the English Garden), and Haidhausen (trendy and youthful) are popular with expats.⁷

Frankfurt

Frankfurt is a modern city and Germany's financial hub, characterized by skyscrapers and numerous entertainment and cultural opportunities. Finding accommodation can be challenging, but new developments offer good apartments in areas like Riedberg and Rebstockpark.⁹

Stuttgart

Despite its strong association with the automobile industry, Stuttgart is set among hills, valleys, and parks, offering incredible views. Stuttgart-West is attractive and close to the city center, while Sindelfingen, Böblingen, or Vaihingen (further out) offer a higher likelihood of finding a house with a garden. Killesberg and Dogerloch are more exclusive places to settle down closer to the city center.¹⁰

Düsseldorf

Düsseldorf is a beautiful cosmopolitan city situated on the Rhine River. It hosts the headquarters and principal offices of many global firms and boasts great museums, restaurants, markets, and international schools.¹¹ Pempelfort (diverse cultural scene), Hafen (popular with singles and younger people), Bilk (students and nightlife), Oberkassel (art nouveau architecture), and Niederkassel (home to a large Japanese community) are all notable neighborhoods.¹¹

1. Expatica. "Cost of Living in Germany." Accessed December 18, 2025. https://www.expatica.com/de/finance/cost-of-living/cost-of-living-in-germany-100855/
2. Mercer. "Cost of Living City Ranking 2024." Accessed December 18, 2025. https://mobilityexchange.mercer.com/Insights/quality-of-living-rankings
3. The Local. "10 things that will shock you about working in Germany." Accessed December 18, 2025. https://www.thelocal.de/
4. Expatica. "Living in Berlin: The Expat Guide." Accessed December 18, 2025. https://www.expatica.com/de/moving/location/berlin-expat-guide-100857/
5. Expatica. "Living in Hamburg: The Expat Guide." Accessed December 18, 2025. https://www.expatica.com/de/moving/location/hamburg-expat-guide-100858/
6. Mercer. "Cost of Living City Ranking 2024." Accessed December 18, 2025. https://mobilityexchange.mercer.com/Insights/quality-of-living-rankings
7. Expatica. "Living in Munich: The Expat Guide." Accessed December 18, 2025. https://www.expatica.com/de/moving/location/munich-expat-guide-100859/
8. Monocle Magazine. "Quality of Life Survey 2024: The 20 Best Places to Live." Accessed December 18, 2025. https://monocle.com/affairs/urbanism/quality-of-life-survey-2024/
9. Expatica. "Living in Frankfurt: The Expat Guide." Accessed December 18, 2025. https://www.expatica.com/de/moving/location/frankfurt-expat-guide-100860/
10. Expatica. "Living in Stuttgart: The Expat Guide." Accessed December 18, 2025. https://www.expatica.com/de/moving/location/stuttgart-expat-guide-100861/
11. Expatica. "Living in Düsseldorf: The Expat Guide." Accessed December 18, 2025. https://www.expatica.com/de/moving/location/dusseldorf-expat-guide-100862/