Home Real estate German Residential Property Pr...

German Residential Property Prices Surge Consecutively for the Fourth Quarter

real estate

The Business Honor: German Property Prices Surge

Business Honor
24 December, 2025

Data from the Federal Statistics Office suggests an approximate 3.3% rise in German Residential Properties in the fourth quarter

Residential property prices in Germany have seen a sudden rise for the fourth consecutive quarter between July and September. Recent data from the Federal Statistics Office and various property portals indicate an approximate 3.3% rise compared to last year. The data also suggests that there is a continued recovery in the residential property market in Europe’s biggest economy after a deep crash between early 2022 and 2024, as the prices dropped by a humungous 13%.

With average prices in almost all regions being higher since last year, single-family and two-family homes saw the highest rises in urban areas and metropolitan cities, and it is estimated that the prices were increased up almost 3.5% and 3.6% respectively, in the third quarter. Besides, the properties saw a rise of 3.2% in the rural areas in the same quarter.

The overall rise in residential real estate prices reflects that Germany has become the hot spot for multi-family setups. The surge in the third and fourth quarters by 1% suggests that many people are opting for metropolitan cities and urban areas in Germany as their primary residence. The recent Reuters survey of real estate analysts also indicate that German residential property prices would rise by 3.5% this year, 3.4% next year, and 3.2% in 2027.