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[BUSINESS] · Germany · 17 sources

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German housing market price slowdown confirmed Q2 2026

A second‑quarter 2026 analysis by the Kiel Institute for the World Economy shows that German residential property prices are losing momentum. Nominal prices for apartments rose only 0.3‑0.4 % quarter‑on‑quarter, while single‑family houses increased about 1.8‑1.9 %. After adjusting for inflation, real values fell: apartments –2.1 % year‑on‑year, houses –0.7 % and multi‑family buildings –5.9 %. The GREIX index, which combines transaction data from more than 20 cities, records the slowdown and notes that buyer sentiment is cautious as mortgage rates approach 4 %. City‑level data reveal modest gains in Düsseldorf (+1.2 %) and declines in Stuttgart (‑1.6 %). The Institute of the German Economy (IW) also linked the slowdown to higher interest rates caused by the Iran‑Russia conflict, which has reduced housing affordability and dampened demand.

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Commerzbank · German residential property market · Institute of the German Economy (IW) · Jonas Zdrzalek · Kiel Institute for World Economics · Kiel Institute for the World Economy · Kiel Institute for the World Economy (IfW) · UniCredit

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