According to data released Wednesday by the Federal Statistical Office, residential property prices in Germany increased by an average of 3.2 percent in the second quarter of 2025 compared to the same period last year.
This marks the third consecutive quarter of rising prices, a trend reversal from a period of consistent decline observed since the fourth quarter of 2022. The growth rate had previously stood at 3.5 percent in the first quarter of 2025 and 1.9 percent in the fourth quarter of 2024. Between the first and second quarters of 2025, residential property prices rose by 1.1 percent.
Apartment prices in all regions of Germany were higher in the second quarter of 2025 than in the corresponding quarter of the previous year. Prices for single-family and two-family homes also increased in most regions.
Within Germany’s seven largest cities – Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf – apartment prices increased by 2.4 percent year-on-year, representing a 0.3 percent gain compared to the previous quarter. In independent major cities outside of these top seven metropolitan areas, apartment prices rose by an average of 5.0 percent compared to the same period last year, a 1.3 percent increase quarter-on-quarter. In sparsely populated rural districts, buyers of apartments paid 3.6 percent more than in the second quarter of 2024, with a further 3.6 percent rise when compared to the prior quarter.
Similarly, single-family and two-family houses saw price increases across most regions. In sparsely populated rural districts, prices rose by an average of 2.8 percent year-on-year, with a 1.3 percent increase compared to the previous quarter. Independent major cities outside the top seven cities saw a 3.9 percent increase compared to the year before, a 1.6 percent rise quarter-on-quarter. Notably, prices for single-family and two-family houses in the seven largest cities of Germany decreased by 0.2 percent compared to the second quarter of 2024, exhibiting a modest 0.2 percent gain compared to the previous three-month period.
