Germany’s housing market experienced a resurgence in the first quarter of 2025, with average prices for residential properties rising significantly compared to the same period in 2024, according to data released Tuesday by the Federal Statistical Office (Destatis).
Prices increased by 3.8 percent year-on-year, marking the second consecutive quarterly rise after a prolonged period of decline that began in the fourth quarter of 2022. While the annual average for 2024 still reflected a 1.5 percent decrease compared to 2023, the recent trend signals a potential shift in the market.
The price increases were broadly felt across the country. In Germany’s seven largest cities – Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf – apartment prices climbed by 3.8 percent compared to the first quarter of 2024, alongside a 2.4 percent increase when compared to the previous quarter.
Properties in independent large cities outside of these top metropolitan areas saw a more substantial increase, with prices rising by an average of 6.1 percent year-on-year, accompanied by a 2.9 percent rise when viewed against the prior quarter. Even in densely populated rural districts, apartment buyers paid 4.1 percent more than in the first quarter of 2024 (+0.3 percent to the previous quarter).
The sole exception to this upward trend was observed in sparsely populated rural districts, where property prices decreased by 0.8 percent compared to the first quarter of 2024 (-1.4 percent when compared to the fourth quarter of 2024).
The trend of rising prices extended to single-family and two-family homes. These properties also appreciated in value in most regions, with independent large cities outside of the seven largest cities indicating a 3.4 percent year-on-year increase (+1.8 percent to the prior quarter). Even in sparsely populated rural areas, prices increased by an average of 2.5 percent year-on-year (+2.2 percent to the previous quarter).
