Prices for apartments and single-family homes in Germany rose moderately in nominal terms in the second quarter of 2026; however, when adjusted for inflation, all major market segments were cheaper than a year earlier.
These figures are contained in the latest update of the German Real Estate Index (GREIX), published by the Kiel Institute for the World Economy on August 6, 2026. The index is based on notarized data on actual transactions provided by local expert real estate appraisal committees.
Compared to the first quarter, apartment prices in Germany rose by 0.3% in nominal terms, while prices for single-family homes rose by 1.8%. The value of apartment buildings fell by 0.9%. Year-over-year, apartment prices rose by 0.4%, and single-family homes by 1.9%. Apartment buildings fell in value by 3.5%.
After adjusting for inflation, the situation looks worse. In real terms, apartment prices fell by 0.9% in the second quarter compared to the previous quarter, while prices for multi-family homes fell by 2%. Single-family homes showed a 0.6% increase.
On a year-over-year basis, declines were recorded across all categories. Real prices for apartments fell by 2.1%, for single-family homes by 0.7%, and for apartment buildings by 5.9%.
Thus, owners of apartments and single-family homes can technically sell their properties for more than they did a year ago. However, the proceeds from such a sale allow buyers to purchase fewer goods and services, as the rise in housing costs lags behind overall inflation.
The most significant real decline was recorded in the multi-unit residential building segment, where nominal prices also fell. At the same time, the authors of the GREIX report caution that the results for this segment are less reliable due to the relatively small number of transactions.
GREIX project manager Jonas Zdralek noted that nominal prices continue to rise, but the pace of growth has noticeably slowed. An additional sign of a cooling market is the increasing frequency with which sellers are adjusting their asking prices in listings.
Among Germany’s largest cities, the most notable quarterly increase in apartment prices was recorded in Düsseldorf—up 1.2%. In Cologne, housing prices rose by 0.1%.
In Leipzig, prices remained virtually unchanged, falling by 0.1%. In Frankfurt am Main, apartment prices fell by 0.6%, and in Stuttgart, by 1.6%.
At the time of this report’s publication, second-quarter data for Berlin, Hamburg, and Munich were still being processed, so it is too early to draw conclusions about the overall market situation in Germany’s largest cities.
More pronounced growth was observed in some medium-sized cities. In Bonn, apartment prices rose by 2.8% compared to the previous quarter; in Münster, by 2.1%; and in Dortmund, by 1.9%. In Bochum, prices fell by 0.5%.
Despite weak price dynamics, buyer activity is on the rise. In the first quarter of 2026, 9.3% more apartments were sold in Germany than a year earlier. The total transaction value increased by 12.1%.
Preliminary data for the second quarter indicate continued growth in the number of apartment purchases, although the pace of recovery has begun to slow. In the single-family and multi-family housing segments, the number of transactions and their total value remain slightly below last year’s levels.
For potential buyers, the current situation means that the German market is gradually emerging from a period of sharp decline in activity but has not yet transitioned to sustained price growth. The increase in price adjustments in listings may also provide buyers with more room for negotiation, especially in cities with weak market dynamics.
GREIX tracks prices in 24 cities and regions across Germany and draws on over 2 million real estate transaction records. To account for distortions caused by differences in property size, condition, and location, researchers use a hedonic pricing model.
