Overview

• Residential prices increased 3.2% year over year in Q2 2025 and 1.1% from Q1, marking a third consecutive annual gain after declines that began in late 2022, according to the Federal Statistical Office.
• Owner-occupied apartments became more expensive across all regions, rising 2.4% in the seven largest cities, 5.0% in other large independent cities, and 3.6% in thinly populated rural districts.
• Prices for single- and two-family houses rose in most regions but edged down 0.2% in the seven biggest cities, the only regional decline in that category.
• The industry group IVD reports new-lease rents increased 3–4% for existing units and 3.5–4.5% for new builds, with the gap between legacy and new-contract rents widening.
• Supply remains tight as only about 251,900 dwellings were completed last year versus a 400,000 target, though building permits rose 30% year over year in July, and surveys show 84% view rents as too high with many cutting leisure spending or postponing moves and family plans.