German Real Estate Market Shows Uneven Recovery in Early 2025

After historic declines in 2023, property prices are stabilizing in some regions, but affordability challenges and regional disparities persist.

Residential property prices in Germany fell slightly in 2024, with ownership apartments down 1.5%, single-family homes down 1.6%, and multi-family homes down 3.0% compared to 2023.
Inflation-adjusted declines were more severe, with prices for ownership apartments, single-family homes, and multi-family homes down 18.2%, 19.6%, and 27.6% respectively from 2022 peaks.
Regional variations in 2024 saw price increases in cities like Frankfurt (3.9%) and Leipzig (1.8%) but declines in Hamburg (4.9%) and Stuttgart (3.2%).
Newly built properties in urban areas performed better, with sales increasing and prices remaining near peak levels, unlike older properties that saw sharper declines.
Bavaria exhibited mixed trends, with ownership apartment prices falling while row houses and newly built semi-detached houses saw price increases; Munich recorded price growth across nearly all segments.