German Real Estate Prices Rebound as Market Stabilizes

After a significant downturn, housing prices in Germany are showing signs of recovery, particularly in major cities.

The Kiel Institute for the World Economy reports a 1.4% rise in condominium prices and a 1.3% increase in single-family home prices in Q3 2024.
Prices for new-build apartments in Germany's top seven cities are nearing their 2022 peak, with only a 1.5% gap remaining.
While most cities see rising property values, Dortmund is an exception, experiencing a 2.2% decrease.
The housing market's recovery follows a historic 8.4% drop in 2023, attributed to high financing and construction costs.
Despite the price uptick, transaction volumes remain low, indicating cautious buyer behavior and limited new-build availability.