The German apartment building market presents a consolidated picture by mid-2026. Current expert committee data for Berlin and Hamburg, supplemented by the GREIX index for 16 other major German cities, evidences a differentiated but overall stable market development. In Berlin, the average purchase price per square metre for multi-family homes and residential and commercial buildings was around EUR 2,177 in the second quarter of 2026. This value was almost identical to that of the previous year's quarter. In Hamburg, multi-family homes were traded at approximately EUR 3,456 per square metre, representing an increase of around 7 per cent over the same period. The GREIX recorded a decrease of about 3 per cent to approximately EUR 2,800 per square metre. Quarterly fluctuations remain discernible, but prices have stabilised at a consistent level in the medium term.
The current developments are underpinned by a robust market year in 2025. The transaction volume in Germany's 50 most important multi-family housing markets rose to approximately EUR 19.2 billion, an increase of around 8 per cent compared to the previous year (EUR 17.8 billion). Simultaneously, market activity increased: 12,603 sales represented a rise of approximately 13 per cent compared to 2024. Following a recovery that began in the previous year, this resurgence continued in 2025. Jürgen Michael Schick, editor of the German Apartment Building Market Report, observed a regained dynamism, characterised by increasing turnover, more deals, and moderate price development. He emphasised that the recovery varied regionally, offering opportunities for detailed analysis.
Berlin maintained its position as the leading location in the German residential investment market. In 2025, the capital accounted for approximately 20 per cent of the total volume in the 50 most important German apartment building markets, corresponding to a turnover of EUR 3.84 billion. With 834 transactions, a 23 per cent increase over the previous year, Berlin also clearly leads in terms of market activity. Mr Schick highlighted that no other location came close to Berlin, as one-fifth of the entire transaction volume was attributable solely to the capital. He explained that Berlin combines volume, liquidity, and sustained high demand, making the market indispensable for both national and international investors.
The apartment building market reconfirmed itself as a metropolitan market in 2025. A-cities accumulated approximately 54 per cent of the transaction volume, followed by B-cities with 25 per cent. C-cities accounted for 13 per cent, and D-cities for 8 per cent. After Berlin, Hamburg with 9 per cent and Munich with 7 per cent were the individual markets with the highest turnover. Among the top-7 cities, Hamburg recorded the highest increase in sales cases with 28 per cent. This concentration on major locations remains a defining characteristic of the German apartment building market. The closing data shows long-term price stabilisation. In the year-on-year comparison from 2025 to 2024, the average purchase price per square metre for multi-family homes increased by around 3 per cent, and for residential and commercial buildings by approximately 4 per cent. In the top-7 cities, the average increase was even around 9 per cent. The current quarterly data from the GREIX-analysed locations confirms this stability: in the second quarter of 2026, prices rose in four out of nine major cities compared to the previous year's quarter, while three showed declines and two remained unchanged. The fluctuations in both directions are moderate, indicating a market that has found its new price base.
Unlike purchase prices, the development of rents continued unchanged. Average asking rents for newly leased existing apartments increased across all city categories by an average of around 3 per cent in the first half of 2026. The highest values were recorded in A-cities at EUR 15.41 per square metre, with smaller city categories also showing increases at a lower level. This sustained rise in rents confirms the structural housing shortage in German conurbations.
