Rent or buy – which option is right for you in 2026?

Rising rents , but also high construction costs and property prices – the decision between renting and buying has rarely been as complex as in 2026. But the coming year can be a favorable opportunity to buy if the preparation is right.

The numbers speak for themselves: Renting vs. Buying – Calculations for 2026

Let's take a typical 90-square-meter apartment in a secondary city like Leipzig or Bremen: purchase price around €380,000, equity €60,000, interest rate 3.6 percent, amortization 2.5 percent – ​​monthly payment approximately €1,650. For rent: base rent €11.50 per square meter, so €1,035, plus additional costs of around €300, totaling €1,335.

In a major city like Munich or Berlin (purchase price €650,000, monthly payment of €2,800), the monthly payment for a purchase is often significantly higher than the rent (approximately €1,800–€2,000). However, after 10 years, a purchase already represents a net worth of over €100,000 – with renting, only the security deposit remains.

Rents in 2026: When it will be cheaper – and when it will be expensive

Renting will remain the more affordable option in many regions in 2026 – especially in booming cities, where purchase prices remain high and interest rates drive up monthly payments. Those who want to remain flexible, whose career or family situation is still undecided, or who might move within the next 5–10 years, often save a significant amount of money by renting.

However, in many cities, rents are rising faster than purchase prices. In Berlin, Hamburg, or Frankfurt, rent increases of 4–6 percent per year are no longer uncommon. Anyone planning to rent long-term risks that the rent will eventually exceed the cost of buying a property – and that without building up any savings.

Buying in 2026: The new advantages for owners and what you need to pay attention to

Buying in 2026 is particularly worthwhile for those planning for the long term. Energy-efficient new builds or renovated older buildings offer not only low utility costs but also increasing value stability. Those who buy in 2026 benefit from the fact that while interest rates are higher than in 2021, they are still well below the long-term average – and prices in many regions are expected to continue rising.

Crucially: Buy an energy-efficient property (at least class C or better) and pay attention to a good location and infrastructure. Those who save through regular and extra repayments in the coming years can pay off the loan faster and save significantly on interest.

Unsure whether you should rent or buy in 2026? Don't let uncertainty hold you back. Contact us for a free personal analysis – we'll calculate exactly which option is best for you, both financially and personally.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

Photo: © Wordliner/Image created with OpenAI's Sora

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