Prices in Hamburg, Germany, increased for both newly built and existing apartments in 2023. In the fourth quarter of 2023, newly built apartments sold 3.9 percent higher than the same period in 2022. Conversely, prices for newly built houses declined by 3.8 percent. In Germany's top five markets, newly built houses experienced the highest price growth.

The Report Covers Germany Residential Real Estate Market Trends. It is Segmented by Type (Villas and Landed Houses, Condominiums, and Apartments) and Key Cities (Berlin, Hamburg, Cologne, Munich, and the Rest of Germany). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The average price of detached and duplex houses in the biggest cities in Germany varied between approximately 4,500 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 9,806 euros. Conversely, Berlin was most affordable, with the square meter price at 4,512 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 166 percent, which means that a house bought in 2015 would have appreciated by 66 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 110, meaning that since 2015, house price growth has outpaced income growth by about 10 percent. Compared with the average for the euro area, this value was lower.

The German Office Real Estate Market is Segmented by Key Cities (Berlin, Hamburg, Munich, Cologne, and Other Cities). The report offers market size and forecast in value (USD billion) for all the above segments.

Housing Index in Germany remained unchanged at 216.89 points in February. 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.

In Q4 2024, the real estate price index in Germany was 185. This means that prices rose by 85 percent compared to the baseline of Q1 2004. This was virtually unchanged from the previous year.

Graph and download economic data for Real Residential Property Prices for Germany (QDER628BIS) from Q1 1970 to Q3 2024 about Germany, residential, HPI, housing, real, price index, indexes, and price.

The net office prime yield in Hamburg, Germany, expanded for the second year in a row in 2023. Between 2013 and 2021, yields fell year-on-year, reaching the record-low 2.55 percent. In 2023, the prime yield stood at 4.25 percent. The net prime yield refers to the ratio of net income to purchase price of a property of highest specification, best location, and standard size commensurate with local demand. Across the major European markets, the lowest yields were found in Geneva, Zurich, and Paris.

The annual prime rent for office real estate in Hamburg, Germany, increased from 300 euros per square meter in 2013 to 432 euros per square meter in 2023. The largest increase in prime rents was seen between 2017 and 2018. While not the most expensive European office market, Hamburg had one of the lowest vacancy rates.

The average transaction price of new housing in Europe was the highest in Norway, whereas existing homes were the most expensive in Austria. Since there is no central body that collects and tracks transaction activity or house prices across the whole continent or the European Union, not all countries are included. To compile the ranking, the source weighed the transaction prices of residential properties in the most important cities in each country based on data from their national offices. For example, in Germany, the cities included were Munich, Hamburg, Frankfurt, and Berlin. House prices have been soaring, with Sweden topping the ranking Considering the RHPI of houses in Europe (the price index in real terms, which measures price changes of single-family properties adjusted for the impact of inflation), however, the picture changes. Sweden, Luxembourg and Norway top this ranking, meaning residential property prices have surged the most in these countries. Real values were calculated using the so-called Personal Consumption Expenditure Deflator (PCE), This PCE uses both consumer prices as well as consumer expenditures, like medical and health care expenses paid by employers. It is meant to show how expensive housing is compared to the way of living in a country. Home ownership highest in Eastern Europe The home ownership rate in Europe varied from country to country. In 2020, roughly half of all homes in Germany were owner-occupied whereas home ownership was at nearly 97 percent in Romania or around 90 percent in Slovakia and Lithuania. These numbers were considerably higher than in France or Italy, where homeowners made up 65 percent and 72 percent of their respective populations.For more information on the topic of property in Europe, visit the following pages as a starting point for your research: real estate investments in Europe and residential real estate in Europe.

Prices for newly built houses and apartments in Germany continued to rise in 2023. In the fourth quarter of 2023, the price for newly built house increased by 2.9 percent from the same period in 2022. Conversely, existing houses and apartments experienced a slight decline in prices. Prices for existing apartments declined in all major cities (Berlin, Frankfurt, Cologne, and Munich), except in Hamburg.

Berlin was the European city with the most office stock volume in 2022, followed by Paris, and Munich. Office floor space in the German capital amounted to approximately 19.7 million square meters. Paris and Munich, on the other hand, had roughly 18.7 and 14.5 million square meters, respectively. London's office market is also not to be underestimated, with London City and West End alone totaling 12.3 million square meters.

Which is the most expensive office real estate market in Europe? With over 1,300 euros per square meter per year, Central London yielded the highest rent among European cities. Both Brexit and the coronavirus affected demand for office space in London, causing rents to stall in many of London's districts.

Where are the lowest vacancy rates in Europe? One of the main signs that the office market is performing well is that vacancy rates remain low. Low vacancy rates encourage developers to build more offices, leading to the growth of the sector. The vacancy rates of prime offices - the best-in-class offices on the most desired locations - were the lowest Berlin, Luxembourg, and Hamburg in 2022.

In the first half of 2023, Hamburg was the most active German retail real estate lettings market. The volume of retail property lettings in Hamburg in the first half of the year amounted to 30,400 square meters. Retail leasing activity dropped significantly in the second and third quarter of 2020 due to the Coronavirus pandemic but recovered, reaching over 112,000 square meters in the second quarter of 2023.

Rents in Germany continued to increase in all seven major cities in 2024. The average rent per square meter in Munich was approximately 19.8 euros — the highest in the country. Conversely, Düsseldorf had the most affordable rent, at approximately 13.1 euros per square meter. But how does renting compare to buying? According to the house price to rent ratio, house prices in Germany have risen faster than rents, making renting more affordable than buying. Affordability of housing in Germany In 2023, Germany was among the European countries with a relatively high house price to income ratio in Europe. The indicator compares the affordability of housing across OECD countries and is calculated as the nominal house prices divided by nominal disposable income per head, with 2015 chosen as a base year. Between 2012 and 2022, property prices in the country rose much faster than income, with the house price to income index peaking at 138 index points at the beginning of 2022. Slower house price growth in the following years has led to the index declining, as incomes catch up. Nevertheless, homebuyers in 2024 faced significantly higher mortgage interest rates, contributing to a higher final cost. How much does buying a property in Germany cost? Just as with renting, Munich was the most expensive city for newly built apartments. In 2024, the cost per square meter in Munich was almost 2,800 euros pricier than in the runner-up city, Frankfurt. Detached and semi-detached houses are usually more expensive. The price gap between Munich and the second most expensive city, Stuttgart, was nearly 4,000 euros per square meter.

Between 2008 and 2022, the homeownership rate in Germany decreased slightly. In 2022, about 46.7 percent of the population lived in an owner-occupied dwelling. This makes Germany one of the countries with the lowest homeownership rate and the biggest rental residential real estate market in Europe.

The value of office real estate investments in European cities was largest in the German cities of Berlin, Hamburg, Munich, and Frankfurt as of the second quarter of 2021. These four cities attracted a total investment value of about 7.6 billion euros.
The office property sector in one of Europe's biggest markets, Central Paris, attracted 4.3 billion euros in the second quarter of 2021. Central London was the third-ranking city and the only other that attracted investments over a billion euros. The other cities evaluated in this statistic had office real estate investments valued below a billion euros.

In 2024, the rental index in Germany reached 107.5 index points. The index was set to 100 in 2020, which means that compared to then, rent in Germany increased by 7.5 percent. Munich saw the highest average rent price among the larger German cities.

The benchmark interest rate in Germany was last recorded at 4.50 percent. This dataset provides - Germany Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2023, the German house price index was almost 149.2 percent, based on preliminary figures. This was an increase of around 49 percent compared to the index year of 2015.

The value for 2024 represents a forecast value. The seven top locations shown include: Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf. In 2024, the prime rent for retail properties in the aforementioned cities averaged around 251.60 euros per square meter. According to the source, the prime rent represents an average of the top 3 to 5 percent of lettings in the market, meaning that the figure quoted does not correspond to the absolute prime rent.