German property prices rise for fourth consecutive quarter

Data from the Federal Statistical Office (Destatis) reveals that German residential property prices increased by an average of 3.3% in the third quarter of 2025 compared to the same period in 2024. 

Germany

This represents the fourth consecutive quarter of year-on-year growth. On a quarterly basis, prices rose by 1.0% compared to Q2 2025.
Price growth was observed across all German regions, though the rate of increase varied by property type and location:
Urban areas: Single-family and two-family homes in urban districts and large independent cities saw significant annual increases of 3.6% and 3.5%, respectively.
Metropolitan hubs: In Germany’s largest cities (including Berlin, Munich, and Frankfurt), house prices rose by 2.7%, while the price of flats (condominiums) increased by 2.8% year-on-year.
Strongest growth: Flats saw the most robust growth in urban areas, with prices up by as much as 5.0% in large independent cities and 4.7% in urban districts compared to 2024.
Rural trends: Even sparsely populated rural areas experienced a 3.2% rise in house prices. Notably, densely populated rural districts saw the highest annual jump for flats at 5.5%.
While the overall trend remains upward, the quarter-on-quarter data showed minor cooling in specific niches. For instance, while prices for flats in densely populated rural areas surged by 3.1% compared to the previous quarter, house prices in those same areas dipped slightly by 0.5%. Similarly, flat prices in sparsely populated rural districts saw a marginal quarterly decline of 0.9%.