Overview

• Residential property prices in Germany increased by the largest annual margin since mid-2022, with owner-occupied apartments up 3.2%, single-family homes up 4.7%, and multi-family houses up 8.7% compared to Q1 2024.
• Transaction volumes rose nearly 30% year-over-year, signaling renewed buyer confidence after the market downturn caused by high financing costs in 2023.
• Major cities like Cologne, Stuttgart, and Berlin led the recovery, with quarterly price increases of 3.4%, 2.1%, and 1.7% respectively for owner-occupied apartments.
• Despite the rebound, property prices remain approximately 10% below their mid-2022 peak levels, reflecting the lingering effects of the previous market correction.
• Rising mortgage rates, now averaging 3.6% for ten-year loans, could challenge the pace of recovery as borrowing becomes more expensive.