Why are legal costs in disputes so high?

In the 2026 legal landscape, a conflict over real estate, rent or ownership is rarely an easy matter. Whether it's a disagreement with a contractor about a failed renovation, a neighbor's fight over the property line, or a complex dispute between a tenant and landlord over the new rental legislation, the costs of legal assistance often seem to rise faster than emotions. Many people involved start proceedings in good spirits, only to find out halfway that the legal invoices are approaching or even exceeding the value of the original dispute.

Understanding the mechanisms behind these rising costs is essential to make strategic choices. In this article, we'll analyze why lawyers and lawyers are ticking so fast and which factors will have the biggest influence on your final legal bill in 2026.

The hourly rate trap and the time factor

The most obvious reason for high costs is the hourly rate of specialized lawyers. In 2026, the rates for an experienced real estate lawyer will vary between €250 and €450 per hour, excluding VAT and office costs.

• Indirect hours: A client often only sees the half hour of speaking time or court session. The real costs, however, lie in the hours spent on file study, preparing court documents, correspondence with the counterparty and the case law investigation.
• Fragmentation of communication: Every email, phone call or short question is invoiced in blocks of often six or ten minutes. In a heated dispute where emotions run high, a constant stream of communication causes an explosive increase in the bill, even before a judge is involved.

The increasing complexity of legislation

In 2026, living and building regulations will be more complex than ever. The introduction of new laws such as the Affordable Rent Act and stricter environmental requirements has created a forest of rules that even experts must find their way around.

Lawyers need to spend more time looking through specific local regulations and recent senior court rulings to build a watertight argument. This “research burden” is directly passed on to the client. In addition, the digitization of the legal system provides an enormous amount of evidence; analyzing thousands of emails, WhatsApp messages and digital plans simply takes a lot of man-hours.

The need for external experts

In real estate disputes, a lawyer alone is often not enough. To win a case, you need technical proof. This forces parties to call in external experts, whose costs fall under the heading of “legal costs”.

Think of an architectural expert who prepares a report on foundation damage, a specialized appraiser who calculates the depreciation of a building, or a sound engineer who takes measurements in case of neighbours. In 2026, these experts will charge rates that are comparable to those of lawyers. When the opposing party challenges the results of a report, a “battle of experts” ensues, with additional reports and hearings further increasing the costs.

The escalation dynamic in procedures

A legal dispute is rarely a unilateral action. Every action by your lawyer elicits a response from the opposing party. This dynamic ensures that the size of the file can grow exponentially.

• Incidental proceedings: Sometimes an “incident” is raised within a main case, for example about the submission of certain documents or the jurisdiction of the judge. This leads to additional written rounds and hearings, which means that the budget for the actual case runs out before the core of the dispute has been dealt with.
• Appeals and delay tactics: In 2026, the workload at the courts will be high, leading to long waiting times. During this time, lawyers will continue to update files and conduct correspondence. If the losing party subsequently appeals, the process, and billing, largely begins again.

Court fees and disbursements

In addition to the lawyer's fees, there are so-called “disbursements”. These are costs that the lawyer incur on your behalf, such as the costs for the bailiff to serve a summons and court fees (the price you pay to bring a case to court).

In 2026, court fees for civil cases will depend on the value of the claim. In the event of disputes about large amounts or property values, these rights can amount to thousands of euros. Although the winning party is often awarded a court order, in practice, this amount rarely covers the full actual costs that have been incurred. So you are almost always left with a financial gap, even in the event of a win.

The psychological factor: “The point of no return”

When €10,000 has already been spent on a case worth over €15,000, psychological mechanisms kick in. Clients often feel compelled to keep going (“sunk cost fallacy”), because giving up means that the costs incurred are permanently lost.

This sometimes gives lawyers the space to continue litigating in cases that should have actually been settled. In 2026, mediation is therefore more often a mandatory part of the process, but if there is no will to settle, mediation will only be an additional cost on the way to court.

Controlling legal costs in 2026 requires a sober view and constant communication with your legal advisor about the cost-benefit overview. An early settlement, while sometimes emotionally unsatisfying, is often the only real win financially in a world where litigation has become an expensive luxury.