According to data released Tuesday by the Federal Statistical Office (Destatis), residential property prices in Germany experienced an average increase of 3.8 percent in the first quarter of 2025 compared to the first quarter of 2024. Prices also rose by 1.4 percent when compared to the previous quarter.
This marks the second consecutive quarter of year-on-year price growth for residential properties, reversing a consistent decline observed since the fourth quarter of 2022. Despite the recent upward trend, the average price of residential properties for the entirety of 2024 remained 1.5 percent lower than the annual average for 2023.
Price increases were observed across various regions of the country. In Germany’s seven largest cities – Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf – apartments saw a 3.8 percent increase compared to the first quarter of 2024, alongside a 2.4 percent increase when compared to the previous quarter.
Independently administered urban areas, located outside of these major metropolitan centers, experienced a more pronounced rise, with apartment values increasing by an average of 6.1 percent year-on-year (+2.9 percent quarter-on-quarter). Densely populated rural districts also saw buyers paying 4.1 percent more than in the first quarter of 2024, with a slight increase of 0.3 percent compared to the previous quarter. The only exception to this rising trend was sparsely populated rural districts, where apartment prices decreased by 0.8 percent compared to the first quarter of 2024 and declined by 1.4 percent compared to the fourth quarter of 2024.
Similarly, single-family and two-family homes also saw price increases across most regions. Prices surged 3.4 percent year-on-year (+1.8% quarter-on-quarter) in independently administered urban areas outside the top seven cities. In sparsely populated rural regions, prices rose by an average of 2.5 percent compared to the year prior, alongside a 2.2 percent gain when compared to the previous quarter.