The Federal Statistical Office reported on Wednesday that 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 price increases compared to the prior year, reversing a previous period of consistent declines observed since the fourth quarter of 2022. In the first quarter of 2025, the year-on-year increase stood at 3.5 percent, while the fourth quarter of 2024 recorded a rise of 1.9 percent. Prices for residential properties increased by 1.1 percent between the first and second quarters of 2025.
Condominium prices across all regions of Germany were higher in the second quarter of 2025 than in the corresponding period of 2024. Prices for single-family and two-family homes also experienced increases in most regions.
Within Germany’s seven largest cities – Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf – condominium prices rose by 2.4 percent year-on-year, representing a 0.3 percent increase compared to the first quarter of 2025. In independent large cities outside these top seven 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 prior quarter. In sparsely populated rural districts, condominium buyers paid 3.6 percent more than in the second quarter of 2024 (+3.6 percent compared to the first quarter).
Similar trends were observed for single-family and two-family homes, with prices rising in most areas. In sparsely populated rural districts, the average price increase reached 2.8 percent year-on-year (+1.3 percent compared to the first quarter). Independent large cities outside the seven largest cities experienced a year-on-year increase of 3.9 percent (+1.6 percent compared to the first quarter). Conversely, prices for single-family and two-family homes in the seven largest cities of Germany decreased slightly, by 0.2 percent compared to the second quarter of 2024, with a subsequent 0.2 percent increase compared to the first quarter of 2025.