In 2025 they are Prices for residential real estate in Germany rose again for the first time in two years. This emerges from figures from the Federal Statistical Office. Accordingly, residential real estate will cost an average of 3.2 percent more in 2025 than in the previous year.
While prices rose by 6.1 percent in 2022, rising interest rates, expensive materials and higher costs of living put a stop to the year-long boom Real estate market initially ended in the following years. As a result, prices fell by 8.4 percent in 2023 and by 1.5 percent in 2024.
Prices increased in all regions compared to the same quarter last year
In sparsely populated rural areas buyers paid for condominiums in 2025 were 5.4 percent more than in the same period last year; in independent cities outside the seven largest metropolises, prices rose by 4.8 percent. In the seven largest cities in Germany (Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf) prices rose by 2.1 percent compared to the same quarter of the previous year.
Single and two-family houses Prices rose by 1.5 percent in the metropolises compared to the same quarter in the previous year. On average, the sparsely populated districts were most affected by the price increase for single- and two-family houses compared to the same quarter last year, at 3.2 percent, and the large urban districts, at 3.1 percent.
Prices are partly falling compared to the previous quarter
The Federal Statistical Office calculates the so-called house price index quarterly. While residential property prices in all regions of Germany cost more on average in the 4th quarter of 2025 than in the same quarter of the previous year, the comparison with the previous quarter shows a more mixed picture: compared to the 3rd quarter of 2025, they fell Condominium prices in German metropolises, for example, by 1.6 percent and in independent cities by 0.1 percent. In sparsely populated rural districts, however, average prices for condominiums rose by 2.6 percent.
Compared to the previous quarter, prices for single- and two-family homes fell by 1.5 percent in independent cities and by 0.3 percent in sparsely populated rural districts. In the metropolises, however, single- and two-family houses were recently 0.9 percent more expensive than in the third quarter of 2025.
The fundamental trend towards price increases According to forecasts, this is likely to continue in the coming years. According to a survey by the Reuters news agency among real estate analysts, the Prices are expected to increase by 3.3 percent this year. An increase of three percent is expected for the years 2027 and 2028.