The price per square metre is the most commonly used metric in the real estate market – quick to calculate, easy to compare, and yet often misunderstood. Whether a value is cheap or expensive depends on how the living area was determined and what the price conceals. We show you how to calculate the price per square metre correctly, how high current values are in 2026, and where the limits of this metric lie.
How do you calculate the price per square metre?
The formula is extremely simple: You divide the purchase price by the living area.
Purchase price ÷ living area = price per square metre (€/m²)
An example: An apartment costs 300,000 euros and has 75 square metres of living area. The price per square metre is 300,000 ÷ 75 = 4,000 euros per square metre.
The metric works in both directions. If you know the usual local price per square metre, multiply it by the living area to obtain a rough guide value for the purchase price. Conversely, you can convert a specific offer into a price per square metre to make it comparable with other properties. That is precisely where its real benefit lies: The price per square metre makes differently sized properties comparable at a glance.
The living area is the decisive reference value
The purchase price is fixed – the living area, on the other hand, is a matter of interpretation. And because it is in the denominator, even a small deviation noticeably changes the price per square metre. In practice, the decisive regulation is the Living Space Ordinance (WoFlV). It is binding for publicly subsidised housing construction and is considered the standard for privately financed properties if nothing else has been agreed in the contract.
Under the WoFlV, areas are not always counted in full (§ 4 WoFlV):
- Rooms with a clear height of at least 2 metres are counted at 100 per cent.
- Areas with a height between 1 and 2 metres – for example, beneath sloping ceilings – count only half.
- Areas under 1 metre in height count not at all.
- Balconies, loggias, roof gardens and terraces are generally counted at 25 per cent, up to a maximum of half.
- Unheated conservatories and swimming pools count at 50 per cent.
Basements, storage rooms outside the apartment, laundry rooms, attics, boiler rooms and garages, on the other hand, are not part of the living area (§ 2 WoFlV).
In addition, DIN 277, which is used more in the construction and commercial sectors. It calculates more generously—for example, balconies at their full size—and results in a larger area for the same apartment and thus, mathematically, a lower price per square metre. Therefore, always check the basis on which the stated living area was calculated before comparing two listings.
Current prices per square metre in 2026 and their ranges
There is no “normal” price per square metre—the range in Germany is enormous. Current analyses of asking prices show a rough nationwide average of 3,000 to 3,300 euros per square metre in 2026, with condominiums tending to be somewhat more expensive than houses. However, the location is decisive:
- In sought-after metropolitan areas such as Munich, condominiums are offered at an average of around 7,000 to 8,000 euros per square metre.
- In many large and medium-sized cities, the figures range between 3,000 and 5,000 euros.
- In rural regions, properties are sometimes available for as little as 1,000 to 1,800 euros per square metre.
The difference between the most expensive and the least expensive region is therefore easily five- to sevenfold. The official house price index from the Federal Statistical Office also shows that, following the declines of previous years, residential property prices have stabilised and have recently risen moderately—although very differently depending on the region (Destatis). While rural districts have noticeably caught up, the seven largest cities have recently developed more slowly. A single average value therefore says little—it is only the appropriate region that makes the figure useful.
House or apartment: The figure behaves differently
For condominiums, the price per square metre is a reliable basis for comparison, because similar apartments in one location also have similar values. With houses, however, caution is advised: The purchase price of a house always also includes the plot of land—and its value does not depend on the living area, but on its size, layout and standard land value.
A small house on a large, expensive plot can thus produce a very high price per square metre, even though the building itself is inexpensive. For houses, the pure price per square metre of living space is therefore only a rough guide. More informative here is a separate assessment of the building and land value or a complete Valuation methods.
Limits of the price per square metre: What the metric does not show
Two apartments with an identical price per square metre can be worth completely different amounts. The price per square metre omits almost all qualitative characteristics. These factors are not reflected in the metric:
- Micro-location: quiet side street or busy arterial road, view of greenery or a party wall.
- Condition and year of construction: newly renovated or in need of renovation, older or newly built.
- Energy standard: The energy certificate and impending renovation costs have a considerable impact on the true value.
- Features: fitted kitchen, bathrooms, floor coverings, lift, parking space.
- Layout and floor: a well-designed layout and a higher floor are worth more than the pure floor area would suggest.
- Outdoor areas: gardens, balconies or terraces are included only proportionally in the living area, but significantly increase the quality of living.
The price per square metre is therefore an initial filter, not a valuation report.
Advantages and disadvantages of the price per square metre as a metric
- Advantage – quick and simple: A single division immediately gives you a basis for comparison.
- Advantage – comparability: Properties of different sizes are brought to a common denominator.
- Advantage – market feel: Comparing with local customary values quickly shows whether an offer is broadly within the expected range.
- Disadvantage – dependent on the living area: If the area is incorrect or calculated using a different method, the entire metric becomes distorted.
- Disadvantage – blind to quality: Location, condition and features are not taken into account.
- Disadvantage – unsuitable for houses: The land share distorts the value per square metre.
FAQ about the price per square metre
How do I calculate the price per square metre of an apartment?
Divide the purchase price by the living area in square metres. If an 80-square-metre apartment costs 360,000 euros, that comes to 4,500 euros per square metre. Make sure that the stated living area was determined in accordance with the Living Space Ordinance.
What is a good price per square metre?
This cannot be answered categorically because values can differ several times over depending on the region. A “good” price is one that is within or below the range of comparable properties in the same location. Therefore, always consult current comparable listings from your city or municipality.
Does the balcony count toward the price per square metre?
The balcony is included is included in the price per square metre based on the living area, though only proportionally. Under the Living Space Ordinance, balconies, loggias and terraces are generally counted at 25 per cent, and in particularly good locations at up to 50 per cent.
Why is the price per square metre less meaningful for houses?
Because the purchase price includes the plot, whose value does not depend on the living area. A large or particularly expensive plot drives up the price per square metre without the building itself being of higher quality. For houses, you should consider the value of the land and the building separately.
Where can I find reliable prices per square metre for my area?
Use several sources: the official data from the Federal Statistical Office for the trend, the land value reference figure for your municipality and current comparable listings on property portals. On TraumImmo, you can compare listings from various portals in one place, giving you a realistic picture of the local price range.
Conclusion: How to use the price per square metre correctly
The price per square metre is an excellent first point of reference—but not a substitute for a genuine valuation. Always calculate it based on an area determined in accordance with the Living Space Ordinance, compare only properties in the same location and bear in mind what the figure leaves out: condition, fixtures and fittings, energy standard and—for houses—the plot. This turns a quick figure into a reliable tool for your buying or selling decision.