The number of involuntary property auctions (foreclosures) in Germany has continued to rise in the first half of 2025. A total of 7,240 properties were listed for auction, representing a 4.8% increase compared to the same period last year, according to data from the specialist publisher Argetra. The firm regularly analyzes data from the German foreclosure market, evaluating the schedules of nearly 500 district courts across the country.
However, the total transaction value reached €2.23 billion, an increase of only 2.8% compared to €2.17 billion a year earlier. This indicates that, on average, properties were assessed at slightly lower values. If this trend persists throughout 2025, Argetra projects that approximately 14,500 properties could be foreclosed upon during the entire year – a 7.8% increase compared to the 13,445 foreclosures recorded in 5024.
The increase in foreclosures is occurring against a backdrop of a slowly recovering economy, rising property prices and a low inflation environment. The European Central Bank (ECB) recently reduced its key interest rate from 2.25% to 2.00%, marking the eighth consecutive reduction following a series of cuts initiated a year prior, when the rate was lowered from 4% to 3.75%.
Despite the ECB’s rate cuts since the beginning of the year, from 3% to 2%, construction loan rates have simultaneously risen. Analysts report average rates for ten-year loans now stand at approximately 3.5%, compared to 3.3% six months ago. This is resulting in more expensive financing options for property buyers who often require loans in the six-figure range.
Current interest rates are significantly higher than those experienced during the period of historically low rates between 2021 and 2022, when ten-year mortgage rates were between 0.85% and 1.5%. These loans are due for renewal in 2031 and 2032.
Looking at the number of scheduled foreclosure proceedings per 100,000 households, Thuringia has the highest rate at 32, nearly triple that of Bavaria’s 13. The national average currently stands at 18 proceedings per 100,000 households, a slight increase from the 17 recorded in the previous year. Approximately 69% of foreclosed properties are residential, primarily single-family and two-family homes, followed by apartments. Commercial properties and other real estate account for the remaining 31%.
Berlin sees the highest average transaction values, with listings averaging over €870,000 per property. Hamburg follows with an average of €840,000, while Thuringia experiences the lowest averages at €93,000. The national average stands at €307,679, down slightly from €314,028 in the prior year.
Among the forty cities with the highest number of foreclosure proceedings, Berlin leads, followed by Chemnitz, Munich, Leipzig and Zwickau. These forty locations, representing approximately 18% of the population, account for 30% of all real estate auctions – and a disproportionately high number of involuntary foreclosures compared to the national average. Recent additions to this concentrated area of foreclosures include Würzburg, Gelsenkirchen, Celle, Kassel, Fürth (Bavaria) and Bad Kreuznach, while Landau/Pfalz, Gera, Gießen, Wuppertal, Stralsund and Karlsruhe have been removed.