According to the results of the 1st quarter of 2026, residential real estate prices in Germany increased by 1.4% year-on-year, which is the minimum increase in the last three quarters. For comparison, in the fourth quarter of 2025, growth was 2.6%, and in the third 3.2%. On a quarterly basis, prices added 0.3%.
The average figures conceal noticeable regional contrasts. In the seven largest cities of the country (Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart, Dusseldorf) the cost of apartments has hardly changed The growth was only 0.3% compared to last year. In densely populated rural areas, apartment prices even decreased by 0.4%, while in sparsely populated rural areas, on the contrary, they increased by 3.6%. As for one- and two-family houses, the largest growth (1.4%) was recorded in megacities, while in rural areas they fell in price by 0.8%.Despite the current positive trend, the market is still far from the peak values of 2022. According to the Federal Statistical Office, prices today remain about 8.3% below that record level, although more than 5% above the minimum reached in 2024.
ING experts in their analytical review draw attention to the fact that the external stability of the market is deceptive.
Analysts emphasize that the short-term outlook remains difficult. Rising credit costs, a cooling labor market, and pressure on real incomes will constrain demand. On the other hand, the structural housing shortage in Germany is still significant - the gap between permitted and actually built housing widened again last year, which creates fundamental support for prices. In addition, the expected economic recovery in the second half of the year may be of little help to the market.
Thus, the German real estate market found itself under multidirectional influences. So far, he is holding on, but the balance is becoming increasingly fragile, and his ability to withstand new challenges in the coming months remains in doubt.
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