Germany residential property prices rise amid regional shifts

Residential real estate prices in Germany rose by an average of 0.6 percent in the second quarter of 2026 compared to the same period last year, according to data from the Federal Statistical Office (Destatis).

Despite this overall increase, a significant regional shift is occurring. In Germany’s seven largest metropolitan areas—Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart, and Düsseldorf—prices for condominiums actually decreased by 0.4 percent compared to the previous year. While single- and two-family houses in these cities saw a slight increase of 0.7 percent, they are no longer the primary drivers of market growth.

In contrast, prices in non-metropolitan district towns rose more sharply, with condominiums increasing by 2.0 percent year-on-year. The market is currently being shaped by opposing forces: high financing costs that limit buyer purchasing power, and a scarcity of land and expensive new construction that maintains upward pressure on prices in high-demand regions.