The German real estate purchase market showed stability in the third quarter of 2026, although increased financing costs were recorded. According to the ImmoScout24 WohnBarometer, asking prices nationwide once again rose moderately. At the same time, mortgage interest rates of around 4.3 per cent significantly influenced prospective buyers, leading to a reduction in demand for owner-occupied properties in metropolitan regions compared to the previous quarter. Concurrently, interest in the rental market increased.
Dr. Gesa Crockford, Managing Director of ImmoScout24, noted that higher financing costs are causing a noticeable shift in demand. She explained that prospective buyers, particularly in metropolitan areas, are increasingly considering the rental market again. Given the slightly rising asking prices nationwide, she emphasised the importance of precise regional analysis and a realistic assessment of one's financing options for those interested in purchasing.
Demand Dynamics and Price Development in Detail
In the third quarter of 2026, demand for purchase properties was more subdued than in the previous quarter. In the eight German metropolitan areas, demand was nine per cent below the level of the second quarter. In the outskirts of these cities, the decline was eight per cent. Independent cities recorded a six per cent difference, while rural areas showed a reduction of two per cent. Despite these developments, demand in all regional categories remained above the level of the third quarter of 2023. Simultaneously, the rental market gained attractiveness, reflected in a twelve per cent increase in rental enquiries between May and September, while purchase enquiries fell by seven per cent.
Prices for existing properties showed an inconsistent development. Nationwide, asking prices for existing flats rose by 0.3 per cent in the third quarter of 2026 to an average of 2,653 EUR per square metre. On an annual comparison, this represents an increase of 4.1 per cent. For existing houses, prices increased by 0.5 per cent compared to the previous quarter, reaching 2,955 EUR per square metre, and were 3.6 per cent above the previous year's level. In metropolitan areas, the picture was more differentiated: while all eight cities still recorded price increases in the second quarter, prices for existing flats fell in five metropolitan areas in the third quarter.
- —Berlin and Hamburg recorded the strongest price declines, each with -1.5 per cent.
- —Frankfurt am Main followed with a decrease of -1.0 per cent.
- —Munich and Stuttgart showed a decrease of -0.4 per cent each.
- —In contrast, prices rose in Düsseldorf by +1.0 per cent, Leipzig by +0.7 per cent, and Cologne by +0.3 per cent.
On an annual comparison, prices for existing flats in seven of the eight metropolitan areas were above the previous year's level. Munich maintained its position as the most expensive metropolitan area with 8,309 EUR per square metre, followed by Frankfurt am Main with 5,385 EUR. Leipzig showed the lowest price level among the metropolitan areas with 3,074 EUR.
New-build Segment with Heterogeneous Development in Metropolitan Areas
Asking prices for new-build flats rose nationwide by 0.7 per cent in the third quarter of 2026 to 4,196 EUR per square metre. This corresponds to an increase of 2.5 per cent year-on-year. New-build houses also became more expensive by 0.6 per cent to 3,975 EUR per square metre and were 2.5 per cent above the previous year's level. In metropolitan areas, new-build flats showed a divided development: prices rose in four cities, while they slightly decreased in four other cities. Frankfurt am Main and Cologne recorded the strongest increases, each with +1.0 per cent, followed by Stuttgart with +0.9 per cent and Düsseldorf with +0.5 per cent. Slight declines were registered in Hamburg with -1.0 per cent, Berlin and Leipzig each with -0.6 per cent, and in Munich with -0.4 per cent. On an annual comparison, new-build prices in all eight metropolitan areas were above the previous year's level. Munich remained the most expensive metropolitan area with 10,541 EUR per square metre, while Leipzig showed the most affordable price level with 4,734 EUR.
