German property market sees first annual price hike since 2022

In the final quarter of 2025, German residential property prices saw a 3.0% increase compared to the same period in 2024, marking the fifth consecutive year-over-year rise.

Germany

This contributed to an overall average increase of 3.2% for the entire year 2025, the first annual rise since 2022, according to the Federal Statistical Office (Destatis).

Across Germany, all regions experienced price increases compared to the fourth quarter of 2024. Notably, condominiums in sparsely populated rural areas saw a 5.4% jump, and those in independent cities (excluding the top seven) rose by 4.8%. The seven largest cities recorded a 2.1% increase for condominiums. Single-family and two-family homes followed a similar trend, with prices up 3.2% in sparsely populated districts and 3.1% in independent cities, while metropolitan areas saw a 1.5% increase for these types of homes.

However, a quarter-over-quarter comparison revealed a mixed picture. While condominium prices fell in metropolitan areas (-1.6%) and large independent cities (-0.1%), they rose by 2.6% in sparsely populated rural districts. Similarly, prices for single-family and two-family homes decreased by 1.5% in independent cities and 0.3% in sparsely populated rural districts, but increased by 0.9% in metropolitan areas.

The 3.2% average annual price increase in 2025 follows declines of 1.5% in 2024 and a more significant 8.4% in 2023. The previous annual increase was 6.1% in 2022. Additionally, the previously reported nationwide house price index for the third quarter of 2025 was revised downwards by 0.2 percentage points to 3.1%.