German property price growth slows at end of 2025, index shows

Price growth in Germany's residential property market slowed towards the end of 2025, with apartment prices edging down and gains in single-family homes remaining modest, an index from the Kiel Institute for the World Economy (IfW) showed.

According to the German Real Estate Index (GREIX) for the fourth quarter, prices for apartments fell 0.3% from the previous quarter, while single-family homes rose 0.8%. Prices for multi-family homes increased 4%, though the index noted that there had been limited transaction volumes in that segment.

The pace of price growth is losing momentum, said Jonas Zdrzalek, the project's lead researcher at IfW. Prices are still rising, but at a slower rate, he said, adding that market activity is also increasing more slowly.

Compared with the same period a year earlier, prices showed modest gains. Apartment prices were up 1.5% and single-family homes rose 1.6%, leaving apartment prices above year-earlier levels for a sixth consecutive quarter but still below Germany's overall inflation rate of about 2.2%.

Prices for multi-family homes climbed 4.8% year-on-year.

The GREIX index tracks property prices across 24 German cities and regions and is based on notarized transaction data from local valuation committees. It covers price developments in individual cities and neighbourhoods dating back to 1960 and draws on more than 2 million property transactions.