The cost of living
If you've wondered how expensive it is to live in Germany, you will be pleased to hear that most basic expenditures such as rent and food are not much higher than in other comparable countries where wages are sometimes lower. The ratio of average earnings and the cost of living is in fact quite in order.
Money by photocase user c-promo.de/Thomas Weißenfels
With an average of 30 percent, rent and housing-related costs such as heating, electricity gas, etc. swallow the biggest share of the average German household’s net income. Needless to say, rent varies greatly between regions and cities and depends on the humbleness of your abode. It is thus not uncommon for someone living in larger, more attractive cities such as Frankfurt or Munich to spend significantly more than one third of his or her net income on rent.
The good news: During recent years, the rate at which rent increases has been much lower than the overall inflation rate, meaning that prices have actually gone down. Again, those looking for a place in coveted areas might not feel that way. The most expensive city is Munich with rents rarely below €10 per square meter. In Frankfurt, you can also easily end up paying €9 per square meter. Those two cities are followed by Hamburg, Bonn, Cologne and Mainz.
Berlin remains a great exception among Germany’s large cities. A square meter often comes in at no more than €4 or €5. Of course this depends greatly on the area. Moreover, rents in Berlin, alongside with those in Baden-Württemberg, Bavaria and Hesse, have also recorded the steepest rise during the past years. In contrast, rents have fallen in the eastern states which still experience westbound migration flows. In cities such as Dresden or Chemnitz you don’t have to expect to pay much more than €4 per square meter.
Other expenditures
After rent, the two biggest chunks of the average household’s net income go into food, personal hygiene and household products (12 percent) and services (12 percent). About 10 percent is spent on mobility (public transport, fuel etc.) and 6 percent on clothing.
According to the Federal Statistics Office, the purchasing power of a “German euro” ranged from €1.57 in Egypt to €0.66 in Japan in April 2005. That means that Japan, for instance, is considerably more expensive since there, one euro is only worth €0.66 in goods. The office’s statistics show that Denmark, the UK, Switzerland and France and Italy are also more expensive than Germany. Slightly more expensive are Austria, the Netherlands, USA, Belgium and Australia. In Canada, South Africa and Poland you get more for your euro than in Germany. In the Czech Republic and Lithuania one euro is worth €1.26, meaning that Germany is about a fourth more expensive than these two countries.
So how come Germany has a reputation of being expensive if so many European countries give you less for a euro? In fact, groceries, household products and other basics to fulfill your everyday needs are not at all more expensive than in other countries, on the contrary: the German Academic Exchange Service DAAD informs its students that €660 will allow a modest lifestyle but no more.
It’s the going out and having fun prices that makes Germany expensive – those most visible to the eye of a tourist. Countries such as Italy and Spain have a culture of having a coffee or a snack on the street and thus seldom charge more than a euro for a coffee. In Germany, prices between groceries in the supermarket and beverages and food in a restaurant or a café vary substantially. A regular coffee will often cost at least €2. A tall latte may be more than €3 in some cities. A glass of water may come in at €1.50 – it’s definitely not free as in many other countries. Half a liter of beer is sold for anything between €2 and €4. A cheap glass of wine costs €3 but there’s no upper limit. According to Lonely Planet travel guide publisher, a mid-range meal will set you back by €8 to €16. €7 should be earmarked for a ticket to the movies. The good news is that many cultural events such as opera and theater performances as well as arts exhibitions receive public subsidies, keeping down prices, especially for students.
Link tip: Student loans
