Cost of living in Berlin vs Sydney and Melbourne

Short answer: your rent and your commute will almost certainly shrink. Your payslip might too, once German deductions come off.

The short version

Berlin's average asking rent in 2025 was about €15.78 per square metre a month before service charges, so a 60 m² flat lands around €1,100 warm [1][9]. Sydney's median unit asking rent sat at A$750 a week at the end of 2025 [2].
Public transport is where Berlin wins big: the Deutschlandticket costs €63 a month in 2026 and covers local transport across Germany [4].
German consumer prices rose 2.2% in 2025, with food up 2.0% [7]. Groceries feel familiar or cheaper than at home; eating out depends hugely on where you go.
Health insurance comes straight off your salary: 14.6% shared with your employer, plus an extra contribution that averages 2.9% in 2026 [10].
Budget for the costs Australians don't see coming: service charge top-ups, a monthly broadcasting fee and a slow, expensive first month.

Berlin vs Sydney vs Melbourne at a glance

Figures below are in local currency, so convert at the rate on the day you read this. We've used official or major-industry sources and given the date of each figure.

Cost	Berlin	Sydney	Melbourne
Rent benchmark	€15.78 per m² a month asking, cold (2025) [1]	Median unit A$750 a week (Dec quarter 2025) [2]	Median unit A$580 a week (Dec quarter 2025) [2]
Example: 60 m² flat or typical unit, per month	About €950 cold, €1,100–1,150 warm [1][9]	About A$3,250	About A$2,500
Single public transport trip	€4.00 for zones AB, valid two hours (2026) [3]	A$4.33 peak train, up to 10 km (from July 2025) [5]	Up to A$5.70 full fare (2026) [6]
Monthly or capped travel	€63 Deutschlandticket (2026) [4] or €113 AB monthly ticket [3]	Adult weekly cap A$50 [5]	Daily cap A$11.40 (2026) [6]
Groceries	Food prices up 2.0% in 2025 [7]; discount supermarkets keep basics cheap	Generally higher for fresh basics	Generally higher for fresh basics
Eating out	Cheap street food, mid-range restaurants roughly on par	Higher, especially in the CBD	Higher, especially in the CBD
Minimum wage	€13.90 an hour (2026) [8]	Australian award system	Australian award system

Monthly figures for Sydney and Melbourne are weekly medians multiplied by 52 and divided by 12. Grocery and eating-out rows are our general comparison, not measured price indexes.

Rent: the biggest saving, if you can get a lease

Berlin's 2025 housing market report found asking rents stagnated at around €15.78 per square metre, with new builds closer to €19.97 [1]. That's cold rent. Add service charges, which averaged €2.79 per m² in Berlin's latest overview [9], and the 60 m² flat in our table comes out at around €1,100 to €1,150 a month warm.

Compare that with Domain's December 2025 figures: a median A$750 a week for a Sydney unit and A$580 for a Melbourne unit [2]. Even after converting euros to dollars, most Aussies find Berlin's rent noticeably lower than Sydney's for comparable space, and usually lower than Melbourne's too.

The catch is access. Asking rents are what landlords advertise, and the best-value flats go fast. Many new arrivals pay more for a furnished short-term place for their first months. Our renting guide explains why those often sit outside the rent cap.

Heating changes the maths

Australian homes are rarely heated the way German homes are. Berlin winters are long and grey, and heating is part of your service charges or a separate bill. Service charges are paid as monthly advances and settled once a year, so a cold winter can bring a top-up bill.

Getting around: Berlin's big win

This is where Berlin makes Sydney and Melbourne look pricey.

The Deutschlandticket. €63 a month from January 2026 for unlimited local and regional public transport across Germany [4]. U-Bahn, S-Bahn, trams, buses and regional trains all count. Long-distance ICE trains don't.
BVG tickets. If you only travel occasionally, a single AB ticket costs €4.00 and is valid for two hours, a 4-trip ticket is €12.40 and a 24-hour AB ticket is €11.20 [3].
No car needed. Most Aussies in Berlin don't own a car, which removes rego, insurance, fuel and parking from the budget entirely.

At home, a five-day commuter on Sydney trains might pay around A$43 a week at peak fares for short trips, capped at A$50 [5]. In Melbourne, a daily cap of A$11.40 adds up to around A$57 for a five-day week [6]. Berlin's €63 covers a whole month and a weekend in Leipzig or Hamburg on regional trains.

Groceries and eating out

German supermarkets are competitive, and discounters keep the basics (bread, dairy, pasta, seasonal vegetables) affordable. Food prices rose 2.0% in 2025, below overall inflation of 2.2% [7]. Things that are cheap at home, such as good avocados and mangoes, can be dear in Berlin, and some Aussie staples are specialty imports. Our Aussie life guide covers the Vegemite question.

Eating out is a mixed bag. A döner, a currywurst or a bowl of Vietnamese pho is still cheap by Sydney standards. Sit-down dinners in Mitte or Prenzlauer Berg cost roughly what you'd expect in a good Melbourne suburb, sometimes less. Tipping is customary but modest; rounding up or adding around 10% is common. Many smaller places still prefer cash, so keep some on you.

Services are where inflation bites hardest: German service prices rose 3.5% in 2025, faster than goods [7].

What comes off your pay

Australians are used to tax, super and the Medicare levy. In Germany, your gross salary shrinks a bit more.

Income tax. Progressive, with a tax-free allowance. See our German paperwork guide for 2026 thresholds.
Health insurance. The general public rate is 14.6% of gross wages, split between you and your employer, plus an insurer-specific extra contribution averaging 2.9% in 2026 [10].
Pension, unemployment and long-term care insurance. Also deducted and shared with your employer.

The upshot: Berlin salaries can look decent on paper but feel thinner in your account. Compare net pay, not gross, when weighing an offer. And if you're on a working holiday, remember the minimum wage is €13.90 an hour in 2026 [8], rising to €14.60 in 2027.

The costs nobody warns you about

The broadcasting fee. Every household pays a monthly Rundfunkbeitrag, whether or not you own a TV. Only one fee per flat, so housemates split it. Details in our paperwork guide.
Service charge settlement. The annual statement can mean a refund or a bill of a few hundred euros.
Deposit and furniture. A deposit of up to three months' cold rent, plus the fact that unfurnished German flats sometimes come without a kitchen.
Liability insurance. Personal liability cover (Haftpflichtversicherung) isn't compulsory but is very common, and some landlords expect it.
Double costs in the first month. Short-term accommodation while you hunt, plus the deposit on your real flat.
Flights home. Berlin to Sydney or Melbourne isn't a cheap or quick trip. Budget for it if you plan to visit at Christmas.

So, is Berlin cheaper?

For most Australians coming from Sydney, yes, mainly because of rent and transport. From Melbourne the gap is smaller, but it's usually still there. What narrows it is lower German salaries in many fields and higher deductions. Run your own numbers with a real job offer and a real flat listing, not averages.

Swap tips on cheap eats, flat deals and where to hunt down Tim Tams with Cooee Germany, our Facebook group for Australians in Germany.

Cost of living in Berlin: cheaper than Sydney, but not the bargain it was