The German residential property market saw varying trends between October and December 2025. This is according to a statement published on 16 January 2026 by empirica regio on the empirica property price index for the fourth quarter of 2025. According to the report, advertised prices for newly built single-family and two-family houses rose by 0.4 per cent compared with the corresponding figure for the previous year, while there was a slight decline of 0.8 per cent compared with the previous quarter. For new-build condominiums, the index remained stable compared with the previous quarter, while there was an increase of 2.6 per cent compared with the previous year. Existing properties also showed slight declines compared with the previous quarter, while a comparison with the corresponding figures for the previous year showed increases of 1.9 per cent for single-family and two-family houses and 2.5 per cent for condominiums.
In a comparison of purchase prices for condominiums in different regions of the country, Munich was the undisputed leader at €11,124 per square metre, followed by Stuttgart, Hamburg and Berlin at €7,790, €7,865 and €7,582 per square metre, respectively. Rents continued to rise for both existing and new properties. While rents for new properties increased by 0.3 per cent compared to the previous quarter and by 4.0 per cent compared to the end of the previous year, rents for existing properties rose by 0.9 per cent and 4.4 per cent respectively.
For 2026, the experts at empirica assume that prices for new buildings will continue to rise, pointing out that they are secured against downward pressure by manufacturing costs. For existing properties, price trends will depend heavily on the condition of the building and its energy efficiency. The greater the need for renovation, the greater the price reduction. There remains a high degree of uncertainty with regard to future regulations and subsidies.
“Overall, these developments continue to offer a positive environment for investors, provided they focus on large metropolitan areas, including their surrounding regions, as well as new builds and renovated, energy-efficient existing properties,” says Jacopo Mingazzini, CEO of The Grounds. “With a view to a possible easing of the rental housing markets in large cities, it is important not to ignore empirica’s observation that economic uncertainty is continuing to slow down the elimination of shortages and that new construction has so far only shown cautious signs of recovery in the form of rising building permit numbers. Clear and reliable framework conditions for developers remain one of the most important influencing factors when it comes to stimulating new residential construction.”
