New study
Residential properties are more expensive here than ever
07.08.2025 – 11:11 a.m.Reading time: 2 min.
The prices for residential properties attract again in the second quarter of 2025 – but are still far from former highs. Only in a city it was never more expensive.
According to a study, the prices for residential properties in Germany continue to rise, but are still far from their record values. In the second quarter, condominiums increased by an average of 0.7 percent compared to the first quarter, as the Kiel Institute for the World Economy (IFW) announced on Thursday.
Membership houses cost 1.0 percent more. The price growth of single -family houses was stronger: they were more expensive by 2 percent. The drop in the price of residential properties, which was still seen in 2024, is stopped. Jonas Zdrzalek, IFW real estate expert, said: “We see a development similar to in the first quarter of 2025”.
According to the information, the purchase prices are still significantly below the record highs from 2022. “In the currently rather weak dynamic, they would only reach again in the nationwide average in around four years,” it said. In the nationwide cut, the distance is even more than ten percent, in Munich, Hamburg and Stuttgart even more than 15 percent.
In the eight largest German cities (Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Leipzig, Munich, Stuttgart), real estate prices took a little breather overall. Leipzig is an exception: Real estate is more expensive there than ever, according to the IFW. From the first to the second quarter alone, prices attracted 2.9 percent.
“The level of square meter prices is still relatively low there,” said Zdrzalek. “Therefore there is still a lot of potential upwards, which is now apparently being exploited.” In Düsseldorf (+1.0 percent), Cologne and Frankfurt (each +0.9 percent) there are rather moderate climbs. Slight declines were registered in Stuttgart (-0.6 percent) and in Berlin (-1.0 percent).
The number of real estate transactions has increased. In spring, 25 percent more apartment buildings were sold than a year earlier, 16 percent more condominiums and nine percent more single -family houses. “We see significantly more market activity, but you can’t speak of a boom yet,” said Zdrzalek. “The increase in the value of real estate, especially the inflation rate, is currently strongly shaped by individual factors, and is not supported by a general housesee.”
