German Housing Prices Rose in 2025 but Vary by Region
Listing prices for residential properties in Germany saw a moderate increase at the end of 2025. Annually, prices rose by 4.6%, but the development varied significantly between cities.
According to immowelt's latest analysis, listing prices for residential properties in Germany continued their recovery in the fourth quarter of 2025. Prices for existing apartments increased by 1.3% and for single-family homes by 0.5% compared to the previous quarter.
On an annual basis, housing prices rose by an average of 4.6% and single-family homes by 2.0% in 2025. While prices are still below the boom year's 2022 peak, the current trend suggests this level could be reached again within the current year.
The price development has been most pronounced in Germany's largest cities, where upward price pressure remains high. Munich, Hamburg, and Frankfurt am Main experienced continued price increases. Berlin saw prices stagnate, while Cologne recorded a slight decrease.
In contrast, more affordable cities such as Dresden, Essen, Düsseldorf, and Nuremberg saw significant price increases. This suggests a shift in demand towards regions with lower price levels.
The affordability of homeownership deteriorated significantly in 2025 due to rising interest rates and purchase prices. Calculations indicate a decrease in purchasing power of approximately 7.6%.