German intelligence services have warned that right-wing extremists are moving into land acquisition, bases for their activities and entrenchment in local communities.
Officials said neo-Nazis were searching for land and buildings in rural areas of the eastern states.
In 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.
"It's part of the Nazi 'blood and earth' ideology," said Nicholas Potter, an expert on right-wing extremism at the Amadeu Antonio Foundation.
"They are trying to gain a foothold wherever they can," he added.
The British newspaper pointed out that real estate prices are low in parts of East Germany, which suffered economic collapse after the union between the two Germans in 1990.
It stated that buyers use real estate to use as venues for concerts and conferences with Holocaust deniers, restaurants are run to earn or launder money and to embed neo-Nazis into the heart of communities, and in some locations paramilitary exercises are conducted.
"They are targeting villages, trying to win acceptance and influence," said Michael Stopgen, Brandenburg's interior minister.
Acquisitions in recent years have included the Golden Lion pub in Kloster Vessra in Thuringia, which Tommy Frank, a neo-Nazi, bought in 2014 and has become a meeting place for right-wing extremists.
"It's a systematic approach and it's been happening for years," the newspaper concluded with Germany's far-right analyst Hugo Funke.