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🏡 Germany’s Property Market in Q3 2025: Resilient Growth Amid Financial Headwinds

  • ronaldsena
  • Oct 7, 2025
  • 2 min read

Immowelt published its report on Germany’s real estate market as it continues to show resilience in Q3 2025, with moderate price increases across most regions despite persistent financing challenges. According to the latest immowelt Preiskompass, both apartment and house prices have climbed steadily, signaling a cautiously optimistic recovery.


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📈 National Trends: Steady Price Growth

  • Apartments: The average asking price for condominiums rose by 1.3% to €3,230/m², matching the previous quarter’s growth.

  • Single-family homes: Prices increased by 0.8% to €2,801/m², doubling the growth rate from Q2.

Compared to the market’s low point in 2023, prices are now 6.1% higher and just 5.2% below the all-time peak of June 2022.


🏙️ City Highlights: Where Prices Moved Most


🔼 Biggest Climbers

  • Duisburg: +4.4% (apartments), now €1,861/m²

  • Düsseldorf: +4.1% (houses), now €5,266/m²

  • Essen: +4.1% (houses), now €3,841/m²

  • Frankfurt: +3.9% (houses), now €4,758/m²


These gains reflect renewed buyer confidence, especially in cities with relatively affordable price levels.


🔽 Price Declines

  • Bremen: -1.0% (apartments), now €3,048/m²

  • Dresden: -1.7% (houses), now €3,510/m²

  • München: -0.2% (houses), now €9,728/m²

High-price regions like Munich and Cologne saw slight dips, likely due to financing constraints.


💬 Expert Insight

Dr. Robert Wagner, CEO of immowelt, notes:

“The market remains robust despite tougher financing conditions. Buyers have adapted to the new interest rate environment, and while prices haven’t returned to 2022 highs, there’s still opportunity for acquisition below peak levels.”

💸 Financing & Affordability

  • Average mortgage rate: 3.65%

  • Affordability index: Down 5.1% since January 2025, equivalent to a loss of 6 m² in purchasing power.

Despite this, Germany’s mortgage volume grew by 13% year-over-year, indicating that many buyers are adjusting to the new normal or leveraging strong equity positions.


🔮 Outlook: A Market at a Crossroads

While the property market has regained momentum, economic headwinds loom. With GDP growth forecasted at just 0.2% and rising unemployment, demand could soften in the coming months. However, energy-efficient homes and prime locations remain in high demand, with limited room for price negotiation.



The full report (in German) can be found here

 
 
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