Real estate prices in Germany continue to rise slightly

Pay or rent? For many, this question does not even arise due to astronomical real estate prices. These are also continuing to rise across Germany, albeit only slightly. And there are a few exceptions.

Condominiums are slightly cheaper again in the seven largest cities in Germany. As the Federal Statistical Office announced on a preliminary basis, prices in Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf fell slightly in the period from April to June, both compared to the same quarter of the previous year (minus 0.4 percent) and the previous quarter (minus 0.5 percent). However, the price level in these metropolitan areas is comparatively high. Single- and two-family houses also became 0.7 percent more expensive here.

Even in densely populated rural areas, buyers of condominiums had to pay less on average: prices fell both within the year (minus 1.8 percent) and compared to the first three months of the current year (minus 1.3 percent).

Overall, however, the prices for houses and apartments in Germany continued to rise, albeit more slowly. Residential properties cost an average of 0.6 percent more in the second quarter of this year than a year earlier. This was the seventh increase in a row, although the increase is visibly slowing down. The Wiesbaden statisticians revised the value for the first quarter downwards from 1.4 percent to 1.2 percent. According to calculations, home ownership in this country was 0.3 percent more expensive in the spring compared to the first quarter of 2026. In independent large cities outside the top 7 metropolises, apartments rose in price by 2.0 percent compared to the same quarter in the previous year and by 0.5 percent compared to the previous quarter.

Hundreds of thousands of apartments are missing

More new apartments are the declared goal of the black-red federal government. The previous SPD-led government had promised 400,000 new apartments in Germany per year, but never achieved this goal. According to estimates, there is a shortage of around one million apartments in this country.

The incumbent federal government wants to push forward the sluggish housing construction with a “construction turbo” through faster approvals. But private and professional builders are struggling with the rapidly rising construction prices, while loan interest rates have risen to over four percent due to the Iran war and concerns about inflation.