German property prices rise in 2025 for first time in three years

German house prices rose in 2025 for the first time in three years, official data showed on Wednesday.

The Federal Statistical Office said residential property prices in Germany were 3.2% higher on average last year than in 2024.

This was the first increase since 2022, following declines in average prices for houses and apartments in 2023 and 2024, the agency said.

Property prices rose 3% in the fourth quarter of the year compared to the same period in 2024, marking the fifth consecutive quarter of growth. Compared with the previous quarter, prices rose by 0.1%.

Property prices in all regions of Germany rose in the fourth quarter on a year-by-year basis.

Buyers paid 5.4% more for flats in rural districts and 4.8% more in cities than in the fourth quarter of 2024.

In Germany’s seven largest cities – Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Dusseldorf – homebuyers had to pay an average of 2.1% more than in the same quarter of the previous year.

Compared with the previous quarter, prices varied by region. While they fell in large cities and metropolitan areas by -1.6%, they climbed by 2.6% in rural regions.