Like other western European countries, you can live expensively in Germany, but you don't have to hit the high life. It is possible to live quite well on a moderate income. Students find it much cheaper to study there, have accommodation, than in the UK, London or the South. In Germany, you can get a one-bedroom city flat for $1,100 per month.
You'll get a cupboard for that in London! Germany enjoys a fantastic quality of life, but you are not paying the like as you would in Dubai, say. Berlin is estimated to be a massive 16.72% cheaper to live in than London, and it is less expensive than other German cities. Food is cheap, especially if you shop in 'discounters' rather than supermarkets. On the other hand, water, fuel, transport, and handymen are expensive.