Real estate prices in Germany continue to rise – where are the exceptions?

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Real estate prices in Germany continue to rise. Current developments and forecasts for 2025 in major cities.

Real estate prices in Germany continue to rise – where are the exceptions?

Real estate prices in Germany continue to show a significant increase. The average price for freehold properties is currently EUR 4,217.16 per square meter, which corresponds to an increase of 1.68% compared to the same week last year. The rental price market also remains tense: the average rental prices are 13.49 euros per square meter and rose by 5.44% compared to the previous year, according to reports Digital Daily.

Real estate prices are rising, particularly in the 20 largest cities in Germany. In 17 of these cities, price increases averaged 1.68%. The exceptions are Bielefeld, Wuppertal and Hamburg, where prices were reduced by 1.85% to 5.01%. Munich in particular remains the most expensive city with an average price of 7,405.14 euros per square meter, followed by Frankfurt am Main with 5,983.04 euros per square meter and Stuttgart with 5,159.64 euros per square meter.

Regional differences

Real estate prices vary greatly between different cities in Germany. An overview of the average prices per square meter in selected cities shows:

City Price per m² Change from previous year
Eat €2980.94 +6.18%
Hanover €3837.81 +5.47%
Nuremberg €4609.52 +4.25%
Bielefeld €3251.78
Wuppertal €2396.17
Hamburg €5307.86
Leipzig €3503.92
Berlin €4850.47
Cologne €5022.53

Another worrying trend is the rise in rent prices, which has been going on for over a decade. This is particularly true for large cities such as Munich, Frankfurt and Leipzig. Loud FTD

Forecasts and challenges

The forecast development of rental prices for 2025 shows a further increase of 4-5%. Low-income households are particularly affected; According to surveys, they had to spend over 35% of their income on rent in 2021. A common measure to deal with the problem could be faster housing construction and land reform. In the long term, rent increases of 30-50% are expected in sought-after cities by 2035.

The market is facing challenges: construction costs have increased by 34% for materials and 18% for wages since 2021. Long-term solutions are urgently needed to improve the situation in the tense housing market in Germany.