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 residential property prices, a shift from a period of consistent declines observed since the fourth quarter of 2022. The rate of increase was slightly lower than the 3.5 percent recorded in the first quarter of 2025 (year-on-year) and the 1.9 percent observed in the fourth quarter of 2024. Prices for residential properties rose by 1.1 percent between the first and second quarters of 2025.
Apartment prices in all regions of Germany were, on average, higher in the second quarter of 2025 than in the corresponding period of the previous year. Prices for single-family and two-family homes also increased in most regions.
In Germany’s seven largest cities – Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf – apartment prices rose by 2.4 percent year-on-year, representing a 0.3 percent increase compared to the preceding quarter. In independent large cities outside these top metropolitan areas, residential property prices increased by an average of 5.0 percent year-on-year, a rise of 1.3 percent compared to the previous quarter. In sparsely populated rural districts, buyers paid 3.6 percent more for apartments than in the second quarter of 2024, accompanied by a 3.6 percent increase quarter-on-quarter.
Single-family and two-family homes also experienced price increases in most areas. Sparsely populated rural districts saw an average price increase of 2.8 percent compared to the second quarter of 2024, a 1.3 percent increase quarter-on-quarter. In independent large cities beyond the seven largest cities, prices rose by 3.9 percent year-on-year, with a 1.6 percent increase quarter-on-quarter. Conversely, in Germany’s seven largest cities, prices for single-family and two-family homes decreased by 0.2 percent compared to the second quarter of 2024, a marginal 0.2 percent increase quarter-on-quarter.
