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 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.

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.

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.

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.

Graph and download economic data for Real Residential Property Prices for Germany (QDER628BIS) from Q1 1970 to Q1 2025 about Germany, residential, HPI, housing, real, price index, indexes, and price.

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.

Residential Property Prices in Germany increased 3.81 percent in March of 2025 over the same month in the previous year. This dataset includes a chart with historical data for Germany Residential Property Prices.

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.

Key information about Germany Nominal Residential Property Price Index Growth

• Germany Nominal Residential Property Price Index Growth was reported at -0.750 % in Sep 2024.
• This records an increase from the previous number of -2.447 % for Jun 2024.
• Germany Nominal Residential Property Price Index Growth data is updated quarterly, averaging 2.602 % from Mar 1971 to Sep 2024, with 215 observations.
• The data reached an all-time high of 12.774 % in Sep 2021 and a record low of -10.254 % in Sep 2023.
• Germany Nominal Residential Property Price Index Growth data remains active status in CEIC and is reported by Bank for International Settlements.
• The data is categorized under World Trend Plus’s Association: Property Sector – Table RK.BIS.RPPI: Selected Nominal Residential Property Price Index: 2010=100: Quarterly: YoY %.

Rents in Germany continued to increase in all seven major cities in 2024. The average rent per square meter in Munich was approximately **** euros — the highest in the country. Conversely, Düsseldorf had the most affordable rent, at approximately **** 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 *** 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 ***** 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 ***** euros per square meter.

House prices in the UK rose dramatically during the coronavirus pandemic, with growth slowing down in 2022 and turning negative in 2023. The year-on-year annual house price change peaked at 14 percent in July 2022. In April 2025, house prices increased by 3.5 percent. As of late 2024, the average house price was close to 290,000 British pounds. Correction in housing prices: a European phenomenon The trend of a growing residential real estate market was not exclusive to the UK during the pandemic. Likewise, many European countries experienced falling prices in 2023. When comparing residential property RHPI (price index in real terms, e.g. corrected for inflation), countries such as Germany, France, Italy, and Spain also saw prices decline. Sweden, one of the countries with the fastest growing residential markets, saw one of the largest declines in prices. How has demand for UK housing changed since the outbreak of the coronavirus? The easing of the lockdown was followed by a dramatic increase in home sales. In November 2020, the number of mortgage approvals reached an all-time high of over 107,000. One of the reasons for the housing boom were the low mortgage rates, allowing home buyers to take out a loan with an interest rate as low as 2.5 percent. That changed as the Bank of England started to raise the base lending rate, resulting in higher borrowing costs and a decline in homebuyer sentiment.

Home Ownership Rate in Germany decreased to 47.20 percent in 2024 from 47.60 percent in 2023. This dataset provides the latest reported value for - Germany Home Ownership Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

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Generative AI In Real Estate Market Size 2025-2029

The generative AI in real estate market size is forecast to increase by USD 1.17 billion at a CAGR of 28.4% between 2024 and 2029.

In the real estate sector, the increasing demand for hyper-personalized experiences and enhanced customer engagement is driving the adoption of generative AI. This technology enables the creation of hyper-realistic virtual staging and generative design, catering to the unique preferences of potential buyers and tenants. However, the integration of AI in real estate comes with challenges. Data privacy, security, and evolving regulatory scrutiny pose significant obstacles, necessitating robust data protection measures and regulatory compliance. The adoption of blockchain technology for secure transactions adds an additional layer of trust and reliability to the market.
By addressing these issues, real estate businesses can leverage AI to deliver personalized experiences, streamline operations, and gain a competitive edge in the market. Companies seeking to capitalize on the opportunities presented by generative AI in real estate must prioritize these challenges to ensure secure and ethical implementation. Virtual reality technology and mixed reality environments are becoming more prevalent, offering users unique and interactive spaces for socializing, working, and even purchasing virtual property.

What will be the Size of the Generative AI In 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.
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The market for generative AI in real estate continues to evolve, with applications spanning various sectors and driving significant changes. Architectural visualization and property condition assessment are revolutionizing the design and construction process, reducing transaction costs by up to 10%. Deep learning models and image recognition technology are enhancing risk mitigation strategies, enabling accurate property pricing models and investment return analysis. Market trend prediction and demand forecasting models are optimizing sales performance metrics, while compliance automation and legal document review streamline operations. Virtual reality experiences and augmented reality overlays offer new dimensions in customer satisfaction metrics, and sustainability assessment and environmental impact analysis are shaping the industry's future.

The real estate AI market is expected to grow by over 20% annually, as businesses increasingly adopt these technologies to remain competitive. For instance, a leading property management software company reported a 15% increase in sales after implementing a lease renewal prediction system. Regulatory uncertainty remains a challenge, but innovation in construction technologies, such as generators and renewable energy solutions, is helping mitigate risks.

How is this Generative AI In Real Estate Industry segmented?

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

Component

  Software tools
  Platforms
  Services


Deployment

  Cloud
  On premises


Application

  Property valuation
  Building design
  Predictive maintenance
  Energy management


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The Software tools segment is estimated to witness significant growth during the forecast period. The software tools segment in the generative AI market for real estate is experiencing significant growth due to its ability to deliver substantial operational efficiencies, cost savings, and marketing advantages for industry professionals. This segment includes specialized applications, plugins, and standalone tools designed to address specific challenges in the real estate value chain. One notable example is virtual staging software, which employs generative adversarial networks or diffusion models to create digital furnishings for vacant properties. By eliminating the need for physical staging, this technology saves time, reduces costs, and enhances marketing appeal. Building Information Modeling (BIM) and big data analytics are transforming property management and due diligence.

The Generative AI in Real Estate Market is transforming property transactions through advanced technologies like real estate chatbots that enhance customer engagement and query resolution. Property search optimization powered by natural language processing enables intuitive and accurate search experienc

Germany Manufactured Homes Market Size was valued at USD 7.30 Billion in 2024 and is Projected to reach USD 53 Billion by 2032, growing at a CAGR of 6.4% from 2026 to 2032.

Affordable Housing Crisis: According to the Federal Statistical Office (Destatis), the average property price in Germany will rise 11.5% by 2023, making traditional dwellings out of reach for many. Meanwhile, prefabricated homes are often priced 20-30% lower than traditional residences, making them a more appealing alternative for first-time purchasers. Aging Population and Retirement Housing Needs: According to Germany's Federal Statistical Office, 22.4% of the population is 65 years or older as of 2024, with the figure predicted to rise to 27% by 2033. This demographic trend is increasing demand for single-story, accessible prefabricated houses that meet the demands of elders.

The real estate prices in Sweden increased significantly between 2008 and 2023. In 2023, the price index reached 455, with 1990 as base year. This was the first decrease in house prices since 2012. Despite the decline, prices in 2023 were still notably higher than before the COVID-19 pandemic. One of the reasons was the slowdown in construction, which hampered the supply of new homes. Rented dwellings are popular among Swedes Sweden is one of the countries in Europe with the most renters among the population. Only about 64 percent of people lived in an owner-occupied home in 2022. Only a few countries, such as France, Denmark, Germany, and Austria, had lower homeownership rates. How many rooms do Europeans have at home? As of 2021, the European countries which had been reported to have the highest number of rooms per person were Ireland and Malta, with 2.3 rooms per person on average. Sweden ranked fifteenth on the list, where the average number of rooms per person was 1.9.

Denmark Luxury Residential Real Estate Market size was valued at USD 3.2 Billion in 2024 and is projected to reach USD 5.18 Billion by 2032, growing at a CAGR of 5.5% from 2025 to 2032.

Key Market Drivers:

High Net Worth Individual (HNWI) Population Growth: Denmark has experienced significant growth in its wealthy population, particularly in Copenhagen and surrounding areas, driving demand for luxury residential properties. Denmark's HNWI population grew by 8.2% in 2023, with approximately 65,000 individuals holding investable assets of over $1 million, with Copenhagen accounting for 42% of this population.

Foreign Investment and International Buyer Interest: Denmark attracts substantial foreign investment in luxury real estate, particularly from other Nordic countries, Germany, and the UK. Foreign buyers accounted for approximately 28% of luxury residential transactions (properties over DKK 20 million) in 2023, with a 35% increase in international purchases compared to 2021.