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Market analysis··2 min read

Residential Preferences in Germany: Pragmatism Outweighs Luxury

A current study sheds light on Germans' housing desires, revealing that practical features such as a balcony, garden, and affordable living costs take priority over luxury amenities.

AI generatedResidential Preferences in Germany: Pragmatism Outweighs Luxury – AI-generated illustrative image
Residential Preferences in Germany: Pragmatism Outweighs Luxury. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

A recent study by Appinio, commissioned by ImmoScout24, analyses the residential preferences of the population in Germany. The results show a clear trend towards pragmatic housing features. Instead of luxurious amenities, respondents value functionality and cost-effectiveness, which is particularly evident in preferences for outdoor spaces and cost control.

The study identifies key desired features intended to improve residents' daily lives. Dr. Gesa Crockford, Managing Director of ImmoScout24, emphasises that for the majority of respondents, luxury is not decisive, but rather aspects that positively influence living comfort and economic viability. A balcony and consistently low ancillary costs are rated as significantly more important than, for example, a sauna or a walk-in wardrobe. Rising living costs reinforce the importance of energy efficiency as a crucial feature.

When asked for up to five desired features for their dream home, a balcony or terrace ranks first on the wish list at 36 per cent. A garden or a parking space/garage follow with 32 per cent each. Furthermore, 28 per cent of respondents mentioned energy efficiency or low ancillary costs, while 22 per cent prefer a bathtub. A good view and a cellar or storage room are considered important by around 21 per cent of participants each. In contrast, features such as a roof terrace (10 per cent), smart home technologies (10 per cent), an electric charging station (10 per cent), a walk-in wardrobe (8 per cent), and a sauna (7 per cent) receive significantly lower priority.

The study also found that many of these desired features are already present and appreciated in the respondents' current living situations. For example, 37 per cent have a balcony or terrace, and 32 per cent value their garden. Parking facilities are cited as a plus by 21 per cent of respondents, while the view is relevant for 19 per cent. The location (45 per cent) and peace and quiet (40 per cent) are most appreciated. Overall, 63 per cent of respondents are satisfied or very satisfied with their current living situation. This proportion is significantly higher among owners, at 80 per cent, than among tenants, where it stands at 52 per cent.

The biggest difference between desire and reality is evident in the area of energy and living costs. Among respondents who perceive high energy costs as a problem, the desire for energy efficiency or low ancillary costs rises to 36 per cent, compared to 28 per cent in the overall average. This correlates with findings from the ImmoScout24 WohnBarometer for the second quarter of 2026, which showed an increase in ancillary costs in unmodernised existing apartments of 3.8 per cent to EUR 3.28 per square metre within one year. This increase surpassed the development of cold rents, which rose by 2.7 per cent in the same period.

  • Balcony or terrace: 36 per cent prefer this feature.
  • Garden or parking space/garage: 32 per cent each prioritise these amenities.
  • Energy efficiency / low ancillary costs: 28 per cent name this point as important.
  • Bathtub: 22 per cent express a wish for this amenity.

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