Overview
- Transaction data from the VDP show a national year-on-year rise of 3.8% in Q3 2025, with metropolitan areas up about 4.6% and Munich, Düsseldorf, Hamburg and Cologne exceeding 5%.
- New-contract rents continued higher, increasing by roughly 3.7% nationally and 3.8% in major cities, with the strongest gains reported in Düsseldorf and Frankfurt at around 5%.
- The VDP reports average contracted mortgage rates around 3.5% in 2025, down from about 3.96% two years earlier, and says home purchase has become more affordable than two to three years ago.
- Buyers are leaning more on debt financing as banks now cover about 83.4% of purchase prices; study authors propose relief such as lower property transfer tax for owner-occupiers.
- Market platform analyses indicate monthly payments are still below late‑2022 levels in many cities due to earlier price adjustments, though local outcomes vary—Mülheim’s typical savings are only about €7 per month—and experts expect borrowing costs could edge toward 4% in 2026.