Neu-Ulm, Germany

Capital City

At just under 62,000 residents, Neu-Ulm is a mid-sized Bavarian town - hardly the bustling metropolis some expats may have in mind. The population has grown steadily since the 19th century, when the town emerged from the shadow of its larger neighbor Ulm. But Neu-Ulm's real estate remains affordable, and a thriving university has helped attract young professionals.

That said, the town's history as a garrison for US troops has left its mark. Rebuilding after heavy World War II bombing took decades, and the departure of American forces in the 1990s was a major economic blow. Bureaucracy is a persistent headache, and the sleepy pace of life may not suit everyone.

For those seeking a cozy, well-connected Bavarian town with a lower cost of living, Neu-Ulm could be an appealing option. But it's no Munich or Berlin - the city's charms are understated, and ambition should be tempered accordingly.