Despite suggesting that his side are among the main contenders to be victorious, Low believes that the hosts have the advantage as they search for their sixth success in the tournament.
"Logically, we have a good, competitive team and we'll be one of the favourites in Brazil," Low, taking charge of the team for the second time at the World Cup, told reporters.
"It's just the hosts know the conditions, they have home advantage, they won the Confederations Cup last summer and have a very settled team.
"Then there are others who have justifiable chances to win, but they, like us, are a bit behind Brazil."
Germany kick off their campaign against Group G rivals Portugal on June 16.