The value development of residential properties in Germany's eight A-cities is no longer exclusively determined by traditional factors such as location and condition. A study from the first quarter of 2026 by VON POLL IMMOBILIEN identifies modern heating systems as a significant influencing factor on pricing. The analysis covered Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich and Stuttgart, comparing price developments by energy source with the same period last year.
The study considered four main categories of energy sources: first, solar, air, water, and geothermal heat; second, district heating and electricity; third, gas and natural gas; fourth, oil. Daniel Ritter, managing partner at VON POLL IMMOBILIEN, stated that the residential property market is showing increasing differentiation by energy source. Although the type of heating does not act in isolation on price development, it is becoming an additional valuation factor in many markets. Particularly in the largest cities, modern heating systems are widely increasing market attractiveness.
Renewable Energies as Price Drivers
Residential properties based on solar, air, water, or geothermal heat showed the most dynamic price development. Berlin recorded an average increase of 10.4 percent here, reaching 6,559 EUR per square metre in the first quarter of 2026. This was followed by Düsseldorf with an increase of 9.2 percent to 7,311 EUR per square metre and Frankfurt am Main with 6.6 percent to 7,461 EUR per square metre. Hamburg showed a plus of 4.8 percent to 6,569 EUR per square metre. More moderate developments were observed in Cologne (+1.5 percent to 6,771 EUR per square metre), Stuttgart (+1.2 percent to 7,625 EUR per square metre) and Munich (+0.9 percent to 10,091 EUR per square metre). Leipzig recorded the smallest increase in this segment with 0.4 percent to 4,800 EUR per square metre.
Alexander Péus, office manager at VON POLL IMMOBILIEN Cologne, Dellbrück, explained that the question of heating and the energy performance certificate is now among the first criteria, often even before a viewing. This is reflected in longer marketing times and price concessions for properties in need of renovation, while energetically well-maintained homes are sold more quickly. Buyers factor in renovation reserves for gas and oil heating systems and consider the requirements of the Building Energy Act regarding renewable energies. Consequently, properties with heat pumps or district heating connections appeal to a broader range of buyers and contribute to market recovery.
District Heating and Electricity with Regional Differences
Residential properties with district heating or electricity also showed positive price developments in many areas. Düsseldorf and Hamburg led here with increases of 8.7 percent (to 6,856 EUR per square metre) and 7.7 percent (to 8,029 EUR per square metre) respectively. Cologne recorded a plus of 2.5 percent (to 5,735 EUR per square metre), Frankfurt am Main and Berlin both 1.8 percent (to 7,477 EUR per square metre and 6,509 EUR per square metre respectively). Stuttgart showed an upward trend of 1.4 percent to 5,855 EUR per square metre. Munich had the highest price level in this segment at 9,544 EUR per square metre but remained comparatively stable at 0.5 percent. Leipzig was the only A-city where prices for residential properties with district heating or electricity slightly decreased, by -1 percent to 3,901 EUR per square metre.
Volker Stich, office owner at VON POLL IMMOBILIEN Munich and Bogenhausen, noted that increased energy costs, geopolitical aspects, and the Building Energy Act have sustainably changed buyer behaviour. Energy efficiency is a key purchase criterion. Buyers specifically ask about the energy performance certificate and the type of heating. Well-renovated properties or those with modern building technology are sold more quickly and at better prices. Heat pumps or district heating are clear selling points, while properties with gas or oil heating require an honest assessment of modernisation costs, as buyers today calculate the renovation needs more realistically.
