According to figures released Wednesday by the Statistical Federal 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 year-on-year price increases for residential properties, a shift from the consistent declines observed since the fourth quarter of 2022. The increase followed a 3.5 percent rise in the first quarter of 2025 and a 1.9 percent rise in the fourth quarter of 2024. Prices for residential properties also rose 1.1 percent between the first and second quarters of 2025.
Apartment prices across all regions of Germany were higher in the second quarter of 2025 than in the same period of the previous year. Prices for single-family and two-family homes also generally increased across most regions.
In 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, a slight increase from the 0.3 percent rise seen in the previous quarter. Independent urban areas outside of these top seven metropolises experienced a more significant increase, with apartment prices rising by an average of 5.0 percent compared to the second quarter of 2024 (+1.3 percent quarter-on-quarter). In sparsely populated rural districts, buyers paid 3.6 percent more for apartments than in the same period last year, representing a 3.6 percent increase from the previous quarter.
Single-family and two-family homes also saw price increases in most areas. Prices in sparsely populated rural districts rose by an average of 2.8 percent year-on-year, a 1.3 percent increase from the previous quarter. Independent urban areas outside the seven largest cities saw an increase of 3.9 percent compared to the second quarter of 2024, with a 1.6 percent increase quarter-on-quarter. In contrast, prices for single-family and two-family homes in Germany’s seven largest cities decreased by 0.2 percent compared to the second quarter of 2024, a marginal increase of 0.2 percent when compared to the previous quarter.