The German real estate market in 2025: upturn in sight

Fabian Rausch
Published on February 25, 2025 | Category: Market analysis

The German real estate market is showing clear signs of recovery. After two years of restraint, investor confidence is returning - and prices are rising as a result. Here is an overview of the most important developments that will affect every real estate investor in 2024/2025.

Major cities on the rise: price increases in Germany's top cities

A sigh of relief for property owners and a green light for investors: Germany's seven largest cities are experiencing a remarkable upswing! Berlin, Hamburg, Munich and co. recorded significant price increases in spring 2024 - detached and semi-detached houses rose by an impressive 2.3% and condominiums by a solid 1.6%.

This trend reversal marks the end of restraint and signals a return to momentum: The market in the sought-after major cities is gaining momentum again. Clever investors now have a window of opportunity to benefit from the incipient upturn.

"The price recovery in the major cities is a classic signal that the market is beginning to recover. Typically, the market first picks up in the top locations before the trend jumps to the B locations." - Real estate expert

Source: Welt.de

Urban upswing: these eleven major cities show where the journey is heading

The positive trend continues! Across Germany, prices for existing apartments rose by an average of 0.8% in the third quarter of 2024 - but what is particularly exciting is that property values are already rising significantly in eleven of the 15 largest German cities.

Top performers in detail:

This broad recovery in urban centers confirms this: The demand for urban living space is returning - an ideal opportunity for far-sighted investors looking for stable returns in prospering economic regions.

Source: Bild.de

The turnaround is here: growth returns after two lean years

After two years of correction, the German real estate market is finally showing clear signs of a sustainable recovery. In the second quarter of 2024, residential property prices climbed by an average of 1.3% compared to the previous quarter - a clear signal of a turnaround!

Particularly impressive: in the top seven metropolitan areas such as Berlin and Munich, condominiums rose by 1.6% and detached and semi-detached houses by as much as 2.3%. This development confirms what experienced market observers had already suspected: Confidence in the German real estate market is back, and with it, promising new investment opportunities are opening up.

Reasons for the recovery:

  1. Stabilization of mortgage interest ratesAfter the rapid rise, interest rates are stabilizing.
  2. Persistent housing shortageDemand continues to exceed supply in many cities.
  3. Stronger wage growthHigher incomes improve purchasing power.
  4. Falling inflationFalling inflation increases buyer confidence.
  5. Return of institutional investors: Large investors rediscover the German market.

 

Source: Welt.de

Get our free report

Download the free and exclusive report now and find out how you can put more of your hard-earned money in your own pocket

Conclusion: The perfect time for smart investors

The German real estate market has overcome the lean period and is gaining momentum again - especially in the sought-after urban centers. For far-sighted investors, now is the ideal time to act strategically:

If you get in now, you can benefit from the incipient upswing and secure the best properties before the wider market follows suit.

Further contributions:

ChatGPT Image 6
What the rental yield really says - and what it doesn't say
Table of contents What is the rental yield - and what does it show? What the rental yield doesn't tell you Long-term...
Aerial view of the buildings and green trees in the town of Solingen, Germany
Why proximity to the property doesn't matter
Contents What really counts: The economic location factors Administration instead of self-control...
ChatGPT Image 23 Apr
Exit strategies for investors: when and how is it worth selling your property?
Table of contents When is the right time to sell? What speaks in favor of selling and what...
Real estate in your tax return - how to optimize your return
Table of contents Income-related expenses: How to effectively reduce your tax burden The most important deductible...
Blog1
Building wealth with substance: Why real estate is revolutionizing your capital
Table of contents 1. your wealth grows while others watch inflation devour their money...

Write a comment

Your e-mail address will not be published. Required fields are marked with *