German intelligence services have warned that right-wing extremists are moving to land acquisition, to establish bases for their activities and to establish themselves in local communities.
Officials said neo-Nazis were searching for land and buildings in rural areas of the eastern states.
In the state of Saxony, the number of buildings known to be owned by far-right groups rose by 5% last year, to 27.
According to official estimates reported by The Times, right-wing extremists own 146 properties across the country, and analysts believe the true figure is much higher.
"This is part of the Nazi ideology (blood and the earth)," said Nicholas Potter, an expert on right-wing extremism at the Amadeu Antonio Foundation. He added, "They are trying to gain a foothold wherever they can."
The British newspaper pointed out that real estate prices are low in parts of East Germany that suffered from the economic collapse after the unification between the two Germans in 1990.
She stated that buyers use real estate to use them as venues for concerts and conferences with Holocaust deniers, and restaurants are run to earn or wash money and to entrench neo-Nazis at the heart of societies, and in some locations paramilitary exercises are conducted.
"They are targeting villages, trying to gain acceptance and influence," said Michael Stubgen, Brandenburg State Home Secretary.
Acquisitions in recent years have included the Goldener Löwe pub in Kloster Vessra, Thuringia, which Tommy Frank, a neo-Nazi, bought in 2014 and has become a meeting place for right-wing extremists.
"It is a systematic approach and it has been happening for years," the newspaper concluded with what the extreme right-wing analyst in Germany, Hajo Funke, said.