In this article, we will look at the 20 best places to live in Germany. But before that, let’s take an overview of the country’s economy, and its world-famous manufacturing sector.
Germany’s Economy: An Overview
Germany’s economy declined in 2023 with the country’s real GDP dropping by 0.2%. The German economy declined by 0.5% in the last quarter of 2023 alone. According to a report by Reuters, the country skirted a recession at the start of 2024, rising by 0.2% in Q1 of 2024 as compared to the previous three months (in adjusted terms). However, estimates by the European Commission show that economic activity in the country is anticipated to grow at a 0.2% rate quarter-over-quarter in 2024. While Germany’s purchasing power recovered significantly in 2023, private consumption in the country remained sluggish. In addition, the country’s exports are being negatively affected by intermediate goods and dwindling foreign demand for capital. Nevertheless, real GDP growth in the country is expected to rise by 0.1% in 2024. The growth is anticipated to continue till 2025, forecasting to bounce back to 1.0% in 2025.
Inflation in Germany has continuously decreased since October 2022, driven by a fall in wholesale energy prices. Specialized measures taken by the country to deal with the high energy prices are one of the primary reasons behind this recovery. Inflation in the country is expected to reduce to 2.4% in 2024 and 2.0% in 2025 from 6.0% in 2023. For more insight, you can look at 12 Most Innovative Economies in Europe.
Russian Gas and Germany’s Manufacturing Industry: What Does the Future Look Like?
According to the International Monetary Fund (IMF), Germany ranks among the only G7 economies to decline in 2023, and thus is facing several economic challenges. The country powered its export industries by importing cheap gas from Russia in the past decades. However, the closure of this importing avenue in 2022 plunged the country’s economic sector into turmoil, increasing inflation and the cost of living.
Fortunately, the effects of this ordeal are proving to be temporary. Although wholesale gas prices soared in the country in 2022, they have returned to their 2018 levels in 2024. Other German sectors are also on the path to recovery, with the country’s terms-of-trade bouncing back to levels before the Russian gas shutdown. The trade surplus in the country touched 4.3% of GDP in 2023, which was higher than the average surplus of the last two decades. This number is expected to rise further in 2024.
The Climate in Germany’s Manufacturing Industry
Although Robert Habeck, Vice-Chancellor of Germany, called the country’s economic situation “dramatically bad” and brought the government’s forecast for 2024’s economic growth down from 1.3% to 0.2% in February, the country’s manufacturing industry continues to hold the top spot in the world. According to the United Nations Industrial Development Organization’s Competitive Industrial Performance (CIP) Index, Germany holds the top spot as the most competitive manufacturing sector in the world as of 2023, managing to retain this position since 2001.
Although increasing competition from China’s manufacturing industry and structural limitations to growth in the German sector are posing challenges for the country’s manufacturing industry, the situation is not all bleak. Germany still houses numerous multinational manufacturing companies, and ranks among the top countries in the manufacturing industry. This includes the Bayerische Motoren Werke AG (ETR:BMW), more commonly known as BMW, headquartered in Munich, Germany. BMW (ETR:BMW) is one of the largest luxury automotive manufacturing companies in the world, and plays a prominent role in driving Germany’s economy. Spread across four brands, including BMW, BMW Motorrad, Rolls-Royce, and MINI, BMW (ETR:BMW) holds more than 30 production sites across the globe.
In 2022, Germany became the largest export market in the world due to BMW (ETR:BMW) Manufacturing, which made up 15.5% of export volume. It was followed by China, South Korea, Canada, and Great Britain, standing at 13.5%, 12.8%, 7.5%, and 5.6% of export volume. The company’s global sales network spans over 140 countries, delivering a total of 2.5 million vehicles to customers around the world in 2023 at an all-time high. The demand increased by 6.4% between 2022 and 2023, showcasing a positive trend for the German company. According to a report by Bloomberg, the company announced plans to invest €650 million ($712 million) at the beginning of 2024 to revamp its Munich flagship factory and transform it into BMW (ETR:BMW)’s first electric vehicle manufacturing site that will focus on EVs only. The renovation, which involves the building of a new assembly line and four buildings, is expected to be completed by the end of 2027. However, it will start manufacturing the next-generation ‘Neue Klasse’ EVs from 2026, ushering in a new age for the company’s EV domain in Germany and driving the country’s economy.
Now that we have taken an overview of Germany’s economy and manufacturing sector, let’s take a look at the 20 best places to live in Germany. You can also look at 30 Wealthiest People in Germany and 15 Best Places to Retire in Germany.
20 Best Places to Live in Germany
Our Methodology
In order to compile a list of the 20 best places to live in Germany, we used a consensus approach and a visitor survey through Reddit. Firstly, we consulted ten online liveability resources to compile a list of the 30 best places to live in Germany. Next, we looked at ten Reddit threads that asked commenters to mention the best places to live in Germany. We only chose threads that had more than 50 comments and studied more than 500 comments to shortlist the places with the most recommendations by Reddit users. We then counted the number of upvotes on each comment and chose the top 20 places with the most number of upvotes. The 20 best places to live in Germany are arranged in ascending order of their number of upvotes on Reddit.
Note: This list is not exhaustive and does not reflect our opinion. The ranking is solely based on the opinions of mass consumers on Reddit.
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20 Best Places to Live in Germany
20. Erlangen
Number of Reddit Upvotes: 391
Erlangen takes the 20th spot on our list of the 20 best places to live in Germany. The city has 391 Reddit upvotes, and is a Middle Franconian city located in Bavaria. Erlangen is the smallest of the eight prominent cities in the Bavarian region.
19. Aachen
Number of Reddit Upvotes: 397
Aachen is located near Germany’s borders with the Netherlands and Belgium in the North Rhine-Westphalia region. It is dotted with historical locations dating back thousands of years, and is famous for its Aachen Cathedral, intricate architecture, and unique cuisine. It has 396 Reddit upvotes.
18. Dortmund
Number of Reddit Upvotes: 400
Located in the North Rhine-Westphalia region, Dortmund is the largest city in Westphalia. It is known as the cultural, commercial, and administrative center of the region, and is the eighth-largest city in Germany.
17. Darmstadt
Number of Reddit Upvotes: 406
Located in southwestern Germany, Darmstadt is located near Frankfurt and ranks 17th on our list as one of the best places to live in the country. It is present in the country’s Hesse state, and is rich in culture with its museums, castles, and churches.
16. Bremen
Number of Reddit Upvotes: 418
The 16th place on our list of the 20 best places to live in Germany is held by Bremen. The German city is located in the northwest of the country, on the Weser River. The city has a vibrant cultural life, with numerous festivals, concerts, and theatrical plays.
15. Münster
Number of Reddit Upvotes: 427
Münster is located in the northern wing of North Rhine-Westphalia, and is famous for being the center of learning and science. It ranks in the 15th spot on our list with 427 upvotes on Reddit.
14. Bonn
Number of Reddit Upvotes: 438
Located in the German state of North Rhine-Westphalia in western Germany, Bonn is located on the Rhine River and ranks in the 14th spot on our list. The city has 438 Reddit upvotes.
13. Freiburg
Number of Reddit Upvotes: 441
Freiburg im Breisgau, more commonly known as Freiburg, is located in southwest Germany’s Black Forest. This university city is surrounded by highlands, has a temperate climate, and is dotted with picturesque spots that make it a beautiful city to live in.
12. Nuremberg
Number of Reddit Upvotes: 446
Nuremberg is the second largest city in the German state of Bavaria. The city’s cobblestone street, unique constructions, and historical buildings make it one of the best places to live in Germany. Nuremberg has 446 upvotes on Reddit.
11. Dresden
Number of Reddit Upvotes: 457
The 11th spot on our list of the 20 best places to live in Germany is held by Dresden. It is the capital of Saxony, the German state, and takes the second spot as the most populous city in the state after Leipzig.
10. Leipzig
Number of Reddit Upvotes: 461
Leipzig is the most populous city located in the German state of Saxony. Apart from being an industrial powerhouse, the city is a bustling creative and cultural hub. It ranks tenth on our list with 461 Reddit upvotes.
9. Hanover
Number of Reddit Upvotes: 469
Hanover is the largest city and the capital of the German state of Lower Saxony. Standing after Berlin, Hamburg, and Bremen, it is the fourth largest city in northern Germany. The city has a good public transport system, is affordable, and is considered safe to live.
8. Heidelberg
Number of Reddit Upvotes: 482
Located in the southwestern wing of Germany, Heidelberg is located on the Neckar River. The city is famous for its 14th-century Heidelberg University, Heiliggeistkirche church towers, and the remnants of the Heidelberg Castle. Heidelberg has 481 upvotes on Reddit, placing it eighth on our list.
7. Stuttgart
Number of Reddit Upvotes: 485
Stuttgart is the capital and the largest city of the German state of Baden-Württemberg. The city is a manufacturing hub, with the headquarters of Mercedes-Benz and Porsche located there. It ranks in the seventh spot on our list.
6. Cologne
Number of Reddit Upvotes: 489
With 489 Reddit upvotes, Cologne ranks in the sixth spot on our list of the 20 best places to live in Germany. Located in western Germany, the city dates back to around 2,000 years, and is famous for being the cultural hub of the country. Some of the most popular academic institutions in the city include the University of Cologne, Technical University of Cologne, and Cologne Business School. Cologne has 489 Reddit upvotes.
5. Frankfurt
Number of Reddit Upvotes: 491
Frankfurt ranks among the most popular cities in Germany, both among tourists and expats. With 491 upvotes on Reddit, it ranks in the fifth spot on our list. Located on the River Main, this central German city is also a financial hub, and houses the European Central Bank. Frankfurt also houses several reputable academic institutions, including Goethe University Frankfurt, Technical University of Darmstadt, Frankfurt School of Finance & Management, and Johannes Gutenberg University Mainz.