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Nachrichten, Termine, Experten
Prices for residential real estate in Germany continued their upward trend in the second quarter of 2025, though without significant acceleration. The strongest gains were seen in single-family houses, while apartments and multi-family houses saw only modest increases, roughly in line with overall inflation. In most regions, prices remain well below their 2022 peaks. Given the current sluggish momentum, those levels are not expected to be reached again—on average nationwide—for another four years. Leipzig, however, has already surpassed its previous peak.
These insights are based on the latest update of the German Real Estate Index (GREIX), a joint project of the local expert committees for property values (Gutachterausschüsse für Grundstückswerte (GAAs)), ECONtribute, and the Kiel Institute for the World Economy (Kiel Institute).
Compared to the previous quarter (Q2 2025 to Q1 2025), apartment prices rose by 0.7 percent. Multi-family houses increased in price by 1.0 percent. Single-family houses saw the strongest growth, with prices rising by 2.0 percent.
Adjusted for inflation, prices for apartments and multi-family houses remained unchanged, while single-family houses became slightly more expensive, gaining just over 1 percent.
“We're seeing a similar trend as in the first quarter of 2025. Prices are continuing to rise, but there are no major jumps,” says Jonas Zdrzalek (https://www.ifw-kiel.de/experts/jonas-zdrzalek/), real estate market expert at the Kiel Institute.
Compared to the same quarter of the previous year (Q2 2025 to Q2 2024), the picture is somewhat clearer: prices for both apartments and multi-family houses rose by 2.7 percent. Single-family houses increased in price by as much as 3.7 percent.
Leipzig leads in price growth
Across Germany’s eight largest cities (Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich, Stuttgart), real estate prices largely plateaued, while Leipzig stood out by reaching a new all-time high.
There, prices rose by 2.9 percent compared to the previous quarter (Q2 2025 to Q1 2025). “Price levels in Leipzig are still relatively low on a per-square-meter basis. This leaves considerable room for further growth, which now appears to be materializing,” says Zdrzalek.
More modest gains occurred in Düsseldorf (+1.0 percent), Cologne, and Frankfurt (each +0.9 percent). Slight declines were observed in Stuttgart (-0.6 percent) and Berlin (-1.0 percent), though both cities had already seen relatively strong increases in the previous quarter.
This puts Leipzig well ahead of the other top 8 cities in terms of real estate dynamics. In most major cities, prices are still well below their peaks from 2022. On average across the country, the gap remains over 10 percent, and exceeding 15 percent in Munich, Hamburg, and Stuttgart.
If the current moderate price momentum continues, new all-time highs for apartments nationwide would not be reached until 15 quarters from now—that is, in early 2029.
Outside the top 8 cities, property prices mostly increased quarter-on-quarter. The strongest gains were seen in Kreis Mettmann (+5.4 percent) and Rhein-Erft-Kreis (+3.0 percent). For the first time, GREIX now includes a dedicated index for North Rhine-Westphalia (NRW), showing that price growth in this state has outperformed the national average compared to the previous quarter.
Number of transactions on the rise
The number of property transactions increased compared to the same period last year: sales of multi-family houses rose by 25 percent, apartments by 16 percent, and single-family houses by 9 percent.
“Market activity has picked up significantly, but it’s still too early to speak of a boom,” says Zdrzalek. “The recent increase in property values—particularly when adjusted for inflation—appears to be driven largely by individual factors rather than a broad-based market upswing.”
Read full report: GREIX Q2 2025: Small increase in house prices—all-time highs aren’t expected anytime soon/https://www.ifw-kiel.de/publications/greix-q2-2025-small-increase-in-house-price...
Methodological note
The price development of the GREIX is calculated as an index. This is the only way to use statistical methods (hedonic method) to eliminate distortions that would otherwise occur with average prices per square meter. For example, the sale of a particularly large number of high-priced properties, for example due to a high number of square meters, good location, or good condition, leads to rising average prices per square meter, but such an increase is not based on a general increase in the value of properties. The formation of the index means that there is no upward or downward distortion in the price trend due to specific characteristics of the properties sold.
About the GREIX sales price index:
What is the GREIX sales price index?
The GREIX sales price index is a real estate price index for Germany based on the sales price collection of the local expert committees, which contains notarized sales prices. It tracks the price development of individual cities and neighborhoods back to 1960 and is based on more than two million transaction data. The dataset can be used to analyze long-term trends in the real estate markets and to place current developments in a historical context.
What data and methods are used to create the indices?
The data collection and evaluation take place in cooperation with the local expert committees. All real estate transactions are recorded in full. The price development is calculated according to the latest scientific standards and statistical methods (hedonic regression method). The GREIX sales price index thus stands for the highest scientific data quality.
Who finances the GREIX sales price index?
The GREIX sales price index is financed by public funding and is a project of the Bonn-Cologne Cluster of Excellence ECONtribute, which is funded by the DFG, and the Kiel Institute for the World Economy, in cooperation with the local expert committees. Its aim is to increase price transparency in the real estate market. Different price indices for 20 cities and regions are freely accessible at www.greix.de/https://www.greix.de/. Additional cities will gradually be added to the data set.
Media Contact:
Mathias Rauck
Chief Communications Officer
T +49 431 8814-411
mathias.rauck@ifw-kiel.de
Kiel Institute for the World Economy
Kiellinie 66 | 24105 Kiel | Germany
Chausseestraße 111 | 10115 Berlin | Germany
T +49 431 8814-1
E info@ifw-kiel.de
www.ifw-kiel.de
Jonas Zdrzalek
Kiel Institute Researcher
T +49 160 98272770
jonas.zdrzalek@ifw-kiel.de
Steffen Zetzmann
Kiel Institute Researcher
steffen.zetzmann@ifw-kiel.de
Sales price development market segments
Copyright: Kiel Institute for the World Economy
Sales price development major cities and GREIX
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Sales price difference in major cities
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Sales price development market segments
Copyright: Kiel Institute for the World Economy
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