The German property market recorded stable purchase prices in June, according to the Europace House Price Index. This index, which remained almost unchanged with a mere 0.01 per cent decline to 221.80 points, shows a year-on-year increase of 1.66 per cent. The development of the property market is increasingly influenced by regional economic dynamics, while the nationwide trend indicates a sideways movement in almost all segments.
The new build sector continues to act as a stabilising factor. Prices for new single and two-family homes remained constant in June at 0.00 per cent compared to the previous month, reaching an index value of 244.57 points. This corresponds to an annual growth of 2.61 per cent. Condominiums also remained almost price-stable, with a minimal decrease of 0.01 per cent to 219.60 points. The year-on-year comparison reveals an increase of 0.83 per cent here. Existing properties, specifically single and two-family homes, also showed no significant movement, with a slight decrease of 0.02 per cent to 201.24 points in June, but an increase of 1.43 per cent year-on-year. These data underscore the market's resilience despite external influences.
Stefan Münter, Board Member and Co-CEO of Europace, highlighted that the current sideways development creates planning security for prospective buyers. He emphasised that acquiring an existing property or a condominium represents an economically attractive alternative, particularly in view of continued rising rents in many cities. The analysis by VALUE AG for June underlines this observation. While the quarterly and annual figures for residential property prices show positive trends, monthly figures for June slightly declined again for the first time. Purchase prices for flats and houses fell by approximately 0.5 per cent, and asking rents saw a small pause of 0.2 per cent.
In the second quarter of 2026, condominiums nationwide moved sideways (+0.2 per cent), while single and two-family homes recorded a slight decrease (-0.3 per cent). The rental market remained the strongest segment with growth of +0.6 per cent. Year-on-year, the momentum has slowed. Flats showed an increase of 2.0 per cent, houses 2.2 per cent, and rents 3.8 per cent, after over four per cent at the turn of the year.
Sebastian Hein, Director at VALUE AG, commented that the market's resilience in the face of increased interest rates and geopolitical uncertainties is remarkable. He pointed out that while momentum has diminished and nationwide averages are becoming less indicative, Hamburg, for example, is experiencing strong growth, while Stuttgart and Munich are seeing declines in house prices. The interpretation of the June decrease, whether seasonally induced or an expression of a last-minute panic, remains an observation for the coming months. The rental market, which continues to show the strongest growth year-on-year, remains the most strained area.
