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2w ago

German Residential Property Market Rebounds with Rising Prices and Rents

In Q1 2025, property prices increased 3.6% nationally and 4.6% in major cities, with Leipzig leading long-term growth projections.

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Die Preise für Eigentumswohnungen in Hamburg sind im vergangenen Jahr wieder leicht angestiegen.
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Overview

  • Residential property prices in Germany rose by 3.6% year-on-year in Q1 2025, reversing the declines seen during the 2023 downturn.
  • Major cities experienced stronger growth, with prices in the seven largest metropolises climbing 4.6%, led by Cologne and Frankfurt at 5.2%.
  • New rents for multi-family housing increased 4.3% nationally and 4.4% in metropolitan areas, reflecting heightened demand.
  • Leipzig ranks as the top investment market in the 2025 Lübke Kelber Rendite-Risiko-Ranking, followed by Berlin and Potsdam.
  • Postbank-HWWI forecasts modest national real price growth of 0.4% annually through 2035, with Leipzig projected to see the highest gains at 1.9% per year.