Housing Index in Germany decreased to 218.19 points in June from 218.58 points in May of 2025. This dataset provides the latest reported value for - Germany House Price Index - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The average price of detached and duplex houses in the biggest cities in Germany varied between approximately ***** euros and 10,000 euros per square meter in 2024. Housing was most expensive in Munich, where the square meter price of houses amounted to ***** euros. Conversely, Berlin was most affordable, with the square meter price at ***** euros. How have German house prices evolved? House prices maintained an upward trend for more than a decade, with 2020 and 2021 experiencing exceptionally high growth rates. In 2021, the nominal year-on-year change exceeded 10 percent. Nevertheless, the second half of 2022 saw the market slowing, with the annual percentage change turning negative for the first time in 12 years. Another way to examine the price growth is through the house price index, which uses 2015 as a base. At its peak in 2022, the German house price index measured about *** percent, which means that a house bought in 2015 would have appreciated by ** percent. Is housing affordable in Germany? Housing affordability depends greatly on income: High-income areas often tend to have more expensive housing, which does not necessarily make them unaffordable. The house price to income index measures the development of the cost of housing relative to income. In the first quarter of 2024, the index value stood at ***, meaning that since 2015, house price growth has outpaced income growth by about ** percent. Compared with the average for the euro area, this value was lower.

The German residential real estate market, valued at €372.77 million in 2025, is experiencing robust growth, projected to expand at a CAGR exceeding 3.06% from 2025 to 2033. This growth is fueled by several key factors. A consistently strong economy, coupled with increasing urbanization and a growing population, particularly in major cities like Berlin, Munich, and Hamburg, are driving demand for residential properties. Furthermore, government initiatives aimed at improving housing affordability and infrastructure development are contributing to market expansion. The market is segmented by property type (villas/landed houses, condominiums/apartments) and key cities, reflecting regional variations in price points and demand. Competition among major players like Vonovia SE, Deutsche Wohnen SE, and LEG Immobilien SE is intense, yet the market's overall growth provides opportunities for both established firms and new entrants. However, challenges such as rising construction costs, stringent building regulations, and limited land availability in desirable urban areas could potentially restrain growth in certain segments. The sustained demand, particularly in the rental sector, suggests a positive outlook for the long-term stability and profitability of the German residential real estate market. While specific data for historical periods is limited, the consistent 3.06% CAGR suggests a steady and predictable growth pattern. This allows us to extrapolate logical estimates. The concentration of large players indicates a well-established market with a healthy balance between supply and demand. While challenges exist, the underlying economic strength and demographic trends suggest that the market’s positive trajectory is likely to continue. The segmentation by property type and city allows for a nuanced understanding of market dynamics within different geographical locations and among different target consumer groups. This in turn permits tailored investment strategies to optimize returns and minimize risks associated with this dynamic sector. Recent developments include: May 2023: Vonovia and CBRE Investment Management agreed to sell five assets totaling 1,350 apartments in Berlin, Munich, and Frankfurt. Three of these properties are new constructions finished and operated in the rental category. The remaining two are under construction, with completion scheduled for the second and third quarters of 2023., January 2023: Vonovia, a German real estate corporation, invested in Gropyus, an Austrian developer of ecological dwellings. Vonovia, which has 1.5 million German citizens, will lead Gropyus' EUR 100 million (USD 106.79 million) series B investment to develop the latter's prefab manufacturing factory in Richen, Austria. FAM AB, a stakeholder in Gropyus, is also investing.. Key drivers for this market are: Strong Demand and Rising Construction Activities to Drive the Market, Rising House Prices in Germany Affecting Demand in the Market. Potential restraints include: Strong Demand and Rising Construction Activities to Drive the Market, Rising House Prices in Germany Affecting Demand in the Market. Notable trends are: Strong Demand And Rising Construction Activities To Drive The Market.

Graph and download economic data for Real Residential Property Prices for Germany (QDER628BIS) from Q1 1970 to Q4 2024 about Germany, residential, HPI, housing, real, price index, indexes, and price.

The Germany Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums and Villas & Landed Houses), Price Band (Affordable, Mid-Market and Luxury), Business Model (Sales and Rental), Mode of Sale (Primary and Secondary), and Key Cities (Berlin, Hamburg, Munich, Cologne, Frankfurt, Dusseldorf, Leipzig and Rest of Germany). The Market Forecasts are Provided in Terms of Value (USD).

The nominal price of residential properties in Germany in the fourth quarter of 2024 showed a modest increase of **** percent. This marks a recovery from previous declines, as the annual house price growth had turned negative in the earlier quarters of 2023, where house prices fell by over ** percent. Adjusted for inflation, the decrease was also noted at ***** percent in the fourth quarter of 2024. This trend could be observed across the major German cities.

Key information about House Prices Growth

• Germany house prices dropped 0.7% YoY in Sep 2024, following a decrease of 2.5% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2001 to Sep 2024, with an average growth rate of 2.2%.
• House price data reached an all-time high of 12.8% in Sep 2021 and a record low of -10.3% in Sep 2023.

The Prefabricated Houses Market in Germany is Segmented by Type (Single-family and Multi-family). The market size and forecasts for Germany Prefabricated Housing Market are provided in terms of Value (USD).

The house price index in Germany increased steadily from 2016 to 2022, followed by a decline until the first quarter of 2024. The index amounted to 100 in 2015 and, at its peak in the second quarter of 2022, exceeded 166 index points, meaning that house prices had risen by 66 percent during that period. Among the leading residential real estate markets in Germany, Munich had the highest square meter price for apartments.

Residential Property Prices in Germany increased 1.94 percent in December of 2024 over the same month in the previous year. This dataset includes a chart with historical data for Germany Residential Property Prices.

House Price Index YoY in Germany decreased to 2.50 percent in June from 2.80 percent in May of 2025. This dataset includes a chart with historical data for Germany House Price Index YoY.

The vacancy rate of housing in Germany has been decreasing in recent years. In 2022, approximately *** percent of residential units in Germany were vacant. For comparison, in 2009, the vacancy rate was *** percent.

Germany Commercial Property Market Index: 127 Cities data was reported at 127.680 1990=100 in 2019. This records an increase from the previous number of 123.710 1990=100 for 2018. Germany Commercial Property Market Index: 127 Cities data is updated yearly, averaging 101.500 1990=100 from Dec 1990 (Median) to 2019, with 30 observations. The data reached an all-time high of 127.680 1990=100 in 2019 and a record low of 93.330 1990=100 in 2004. Germany Commercial Property Market Index: 127 Cities data remains active status in CEIC and is reported by Bulwiengesa AG. The data is categorized under Global Database’s Germany – Table DE.EB004: Property Market Index.

The German condominiums and apartments market exhibits robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 7.80% from 2025 to 2033. While the exact market size in 2025 is unavailable, considering a typical market size for a developed nation with Germany's population and economic indicators, a reasonable estimate would be in the range of €50-70 billion. This substantial value reflects a significant investment in residential real estate, fueled by several key market drivers. Strong urbanization trends, a growing population, and increasing demand for modern, comfortable housing contribute significantly to market expansion. Government initiatives aimed at affordable housing and infrastructure development further stimulate demand. However, the market faces constraints, including rising construction costs, land scarcity in prime urban locations, and regulatory hurdles. These challenges necessitate innovative construction techniques, sustainable building practices, and efficient land utilization strategies to ensure sustainable growth in the sector. Segmentation within the market likely reflects various property types (luxury apartments versus affordable housing), geographical locations (urban vs. rural), and ownership models (rental vs. owner-occupied). Key players such as Vivawest GmbH, Koster GmbH, Hochtief Solutions AG, and others are actively shaping the market through their development projects and innovative approaches. The forecast period, spanning from 2025 to 2033, promises continued expansion, albeit with the need to address the identified constraints to maintain the predicted CAGR. The German condominium and apartment market’s future trajectory is directly tied to the effectiveness of addressing existing challenges. Success hinges on strategies that balance market demand with sustainable growth. This encompasses developing cost-effective and environmentally friendly construction methods, optimizing land use, and streamlining regulatory processes. Furthermore, diversifying property types and locations to cater to a broader spectrum of consumer needs will be crucial for sustained, healthy growth throughout the forecast period. Continuous innovation in design, materials, and technology will enable market leaders to stay ahead of the curve and navigate the complexities of this dynamic market. The ongoing need for affordable housing presents both a challenge and an opportunity, requiring strategic partnerships between government, developers, and investors to deliver solutions that cater to the diverse needs of the German population. Key drivers for this market are: 4., Aging Population4.; Increased Longevity. Potential restraints include: 4., Inadequate Staffing. Notable trends are: Freehold apartments: Consistent demand maintains steady prices.

In 2023, the Germany Real Estate Market reached a value of USD 634.2 million, and it is projected to surge to USD 738.6 million by 2030.

Germany Residential Real Estate Market size was valued at USD 792 Billion in 2024 and is projected to reach USD 1224.72 Billion by 2032, growing at a CAGR of 5.6% during the forecast period from 2026-2032.

Germany Residential Real Estate Market: Definition/Overview

Residential real estate in Germany includes properties for private living such as single-family homes, multi-family units, condominiums, and apartments. These properties serve to people and families looking for permanent or temporary housing, with an emphasis on high-quality construction, energy efficiency, and sustainable design approaches that conform with Germany's severe building laws.

Residential real estate in Germany is a cornerstone of urban growth and housing solutions, providing areas for both personal occupancy and investment.

In Q4 2024, the real estate price index in Germany was ***. This means that prices rose by ** percent compared to the baseline of Q1 2004. This was virtually unchanged from the previous year.

The German manufactured homes market is experiencing robust growth, fueled by increasing demand for affordable and sustainable housing solutions. With a market size exceeding €X million in 2025 (estimated based on provided CAGR and value unit), and a projected Compound Annual Growth Rate (CAGR) above 4%, the market is poised for significant expansion through 2033. Several key drivers contribute to this growth: rising urbanization leading to housing shortages, particularly in major cities like Berlin, Munich, and Hamburg; growing environmental awareness pushing for energy-efficient construction methods; and the increasing preference for faster construction times associated with modular homes. The market is segmented by home type (single-family and multi-family) and geographic location, with Berlin, Hamburg, Munich, and Frankfurt representing key urban centers driving demand. Companies like Swietelsky AG, DFH Group, and Portakabin are leading players in this competitive market, each leveraging its strengths in design, technology, and distribution networks. While challenges remain, including fluctuating material costs and potential regulatory hurdles, the overall market outlook remains positive, indicating strong potential for further growth and investment. The segmentation offers diverse investment opportunities. The multi-family segment, catering to urban rental markets, is expected to grow at a faster rate than single-family homes, driven by population density and rental demand in major cities. Regional differences in growth rates are anticipated, with Berlin and Munich potentially leading the charge due to higher population growth and housing pressure. The success of individual companies will depend on their ability to innovate with sustainable materials, adapt to evolving consumer preferences, and effectively manage supply chain challenges. The market's positive trajectory presents significant opportunities for both established players and new entrants seeking a position in the dynamic German manufactured housing sector. Recent developments include: July 2022:Bouygues' acquisition of Equans, The merger is also subject to review by the Competition and Markets Authority in the UK, which has also issued a decision on its investigation on 19 July 2022. Bouygues offered to divest Colas Rail Belgium in its entirety, including all assets, personnel, and ongoing and future contracts of both its railway contact lines and track installation businesses. As a result, Colas Rail Belgium will remain an independent competitor to Bouygues and Equans in the relevant market in Belgium., May 2022:OECON sold to Portakabin. The acquisition of OECON is a key strategic move and part of the Portakabin Group's European expansion plans. OECON will complement the current Portakabin operations in France, Belgium, and Holland and provide the necessary routes to market for the extensive range of Portakabin modular buildings within the office, healthcare, and education sectors in Germany.. Notable trends are: Rapid Urbanization in the Region is Driving the Market.

Snapshot img

Residential Real Estate Market Size 2025-2029

The residential real estate market size is forecast to increase by USD 485.2 billion at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, fueled by increasing marketing initiatives that attract potential buyers and tenants. This trend is driven by the rising demand for housing solutions that cater to the evolving needs of consumers, particularly in urban areas. However, the market's growth trajectory is not without challenges. Regulatory uncertainty looms large, with changing policies and regulations posing a significant threat to market stability. Notably, innovative smart home technologies, such as voice-activated assistants and energy-efficient appliances, are gaining traction, offering enhanced convenience and sustainability for homeowners.
As such, companies seeking to capitalize on the opportunities presented by the growing the market must navigate these challenges with agility and foresight. The residential construction industry's expansion is driven by urbanization and the rising standard of living in emerging economies, including India, China, Thailand, Malaysia, and Indonesia. By staying abreast of regulatory changes and implementing innovative marketing strategies, they can effectively meet the evolving needs of consumers and maintain a competitive edge. These regulatory shifts can impact everything from property prices to financing options, making it crucial for market players to stay informed and adapt quickly.

What will be the Size of the Residential Real Estate Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

In the dynamic housing market analysis, small flats continue to be a popular choice for both investors and first-time homebuyers, driven by affordability and urban growth. International investment in housing projects, including apartments and condominiums, remains strong, offering attractive investment returns. Real estate syndication and property management software facilitate efficient property ownership and management. Real estate loans, property insurance, and urban planning are essential components of the housing market, ensuring the development of affordable housing and addressing the needs of the middle class and upper middle class. Property disputes, property tax assessments, and real estate litigation are ongoing challenges, requiring careful attention from stakeholders.
Property search engines streamline the process of finding the perfect property, from studio apartments to luxury homes. Real estate auctions, land banking, and nano apartments are innovative solutions in the market, while property flipping and short sales provide opportunities for savvy investors. Urban growth and community development are key trends, with a focus on sustainable, planned cities and the integration of technology, such as real estate blockchain, into the industry. Developers secure building permits, review inspection reports, and manage escrow accounts during real estate transactions. Key services include contract negotiation, dispute resolution, and tailored investment strategies for portfolio management. Financial aspects cover tax implications, estate planning, retirement planning, taxdeferred exchanges, capital gains, tax deductions, and maintaining positive cash flow for sustained returns.

How is this Residential Real Estate Industry segmented?

The residential real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period. The sales segment dominates the global residential real estate market and will continue to dominate during the forecast period. The sales segment includes the sale of any property that is majorly used for residential purposes, such as single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences. With the growing population and urbanization, the demand for homes is also increasing, which is the major factor driving the growth of the sales segment. Moreover, real estate firms work with developers to sel

The Germany Real Estate Services Market Report is Segmented by Property Type (Residential, Commercial), by Service (Brokerage Services, Property Management Services, Valuation Services and More), by Client Type (Individuals/Households, Corporates & SMEs and More), and by City (Berlin, Munich, Frankfurt, Hamburg, Rest of Germany). The Market Forecasts are Provided in Terms of Value (USD).