Recovery of Real Estate Prices in 2025
The real estate prices in Germany will rise again in 2025, after having fallen or stagnated in 2023 and 2024. This recovery is particularly evident in the first quarter of 2025, with a nationwide price increase of about 3.6 percent compared to the previous year.
Where is it currently worth buying real estate?
Not primarily in the metropolises:
While the prices for residential real estate in the largest German cities have recently increased significantly, the growth there is partially slowing down or stagnating. The dynamic price development is increasingly shifting away from the metropolises towards other regions.
New Opportunities for Homeowners and Investors
- The market dynamics are overall increasing again, which is evident from a rising number of transactions.
- For homeowners, regions outside the expensive large cities often still offer relatively moderate prices alongside good infrastructure.
- Investors can benefit from this development, as the demand for housing remains high and rental prices tend to rise.
Price Development at a Glance
- After a peak in mid-2022, prices dropped by about 11 percent by the end of 2024 – a decline at a high level. Since the beginning of 2025, the price level is increasing again.
- Condos are currently stagnating in price or rising slightly; single-family homes are being sold at slightly higher prices.
Conclusion
The real estate market in Germany is experiencing a turning point: After a phase of price decline, prices have been rising again since the beginning of 2025. However, the growth is no longer solely concentrated in the large metropolises but also offers attractive purchasing opportunities for homeowners and investors outside these cities. This represents an important market development, as it opens up new opportunities and allows for a broader regional distribution of demand.