# Lower Saxony > Lower Saxony is Germany's second-largest state by area, with a diverse economy and the Volkswagen headquarters. Canonical: https://www.investbud.de/en/states/niedersachsen Last updated: 2026-10-28 Lower Saxony is Germany's second-largest state by area after Bavaria and has about 8 million residents (end of 2025). The property transfer tax is 5.0%. The market includes industrial cities like Wolfsburg, the state capital Hannover, university cities such as Göttingen, Osnabrück and Braunschweig, and large rural regions. - Transfer Tax: 5.0% - Capital: Hannover - Population: 8,0 million - Area: 47.614 km² - Transfer tax rate of 5.0% since 2014 - About 8 million residents (end of 2025) - Hannover is the state capital and the state's largest city - Mix of industrial cities and rural areas ## Real Estate Market A state this large has no single market. In the state capital Hannover, detached and two-family houses cost the most in the state according to the state property market data 2026; prices there rose only slightly in 2025. Göttingen, Osnabrück and Braunschweig have universities whose students and staff need housing. In the Lower Saxony part of the Hamburg commuter belt, for example in the Harburg district, house prices are well above the state average. Buyers pay the highest prices for new-build apartments on the East Frisian Islands, and the Harz mountains in the south are a holiday region. - In 2024, the median gross wage of full-time employees in Wolfsburg ranked third among all German cities and districts, after Ingolstadt and Erlangen - In Göttingen and Osnabrück, part of the rental demand comes from students and university staff ## Transfer Tax Details Lower Saxony has levied a Grunderwerbsteuer of 5.0% since 1 January 2014. On a purchase price of 250,000 euros, this comes to 12,500 euros. Only Bavaria charges less, at 3.5%; Baden-Württemberg, Rhineland-Palatinate, Saxony-Anhalt and Thuringia also charge 5.0%. Among the neighboring states, Hamburg and Bremen charge 5.5%, Schleswig-Holstein and North Rhine-Westphalia 6.5%. Notary and land registry fees add about 1 to 1.5% of the price. ## Investment Cities The choice ranges from Hannover to smaller cities where universities or large employers carry demand. - Hannover: The state capital and the largest city in the state - Wolfsburg: A city with high wages; the median gross wage of full-time employees ranked third in Germany in 2024 - Braunschweig: A research location with a technical university - Göttingen: A university city ## Practical Tips - In Hannover, look for short walks to the nearest Stadtbahn (light rail) stop - If you buy in Wolfsburg, you can spread the risk by also looking at neighboring Braunschweig. It has the technical university, the national metrology institute PTB and other research institutions ## Frequently Asked Questions ### What is the property transfer tax in Lower Saxony? Lower Saxony has charged a Grunderwerbsteuer of 5.0% of the purchase price since 2014. Only Bavaria is lower, at 3.5%. ### Is Wolfsburg too dependent on Volkswagen for property investment? Wolfsburg is home to Volkswagen's group headquarters, and the median gross wage of full-time employees ranked third in Germany in 2024. Before you buy, check how much the tenants of a property depend on this one employer. If you plan to buy several apartments, you can spread them across several Lower Saxony cities. ### What rental yields can I expect in Lower Saxony? The current gross rental yield for Lower Saxony is shown at the top of this page. It is a median based on listing data and varies widely between cities; the rental yield ranking shows the figures by city. For your own calculation, what counts is the purchase price and net cold rent of the specific apartment, the 5.0% transfer tax, notary and land registry fees (about 1 to 1.5%) and any broker commission.