In August 2024, the segment of new build detached and semi-detached houses emerged as the strongest area within the Europace House Price Index (EPX). Prices for new builds rose by 0.49 per cent compared to the previous month, reaching a peak of 245.26 points. Compared to the same month last year, these prices registered an increase of 3.34 per cent.
The German real estate market showed overall stability. The total index increased by only 0.15 per cent in August to 222.54 points, which corresponds to a year-on-year increase of 1.68 per cent. A minimal price increase was also observed in the condominium segment; the index rose by 0.14 per cent in August to 219.85 points. Compared to the same month last year, prices here were 0.26 per cent higher.
In contrast, the index for existing detached and semi-detached houses recorded a slight decline. After a significant rise in July, prices fell by 0.26 per cent in August to 202.51 points. However, existing properties remained 1.26 per cent above the previous year's level year-on-year. Stefan Münter, Europace Board Member and Co-CEO, commented that new builds represented the most striking segment in the EPX in August. He further explained that the 0.49 per cent increase month-on-month and 3.34 per cent year-on-year indicates that new builds are becoming increasingly less affordable for consumers and have risen slightly more sharply than the inflation rate over the past twelve months.
An analysis by VALUE AG shows a two-tiered development in the housing market regarding asking prices. Asking prices for detached and semi-detached houses again recorded a slight increase in August, while condominiums declined for the third consecutive month. The annual rate for condominiums fell to one per cent. The median asking price for detached and semi-detached houses nationwide was 2,666 EUR per square metre, which represents an increase of 0.16 per cent compared to the previous month. This marked the fifth consecutive monthly increase, with annual growth of 2.6 per cent.
In the condominium sector, asking prices fell to 3,553 EUR per square metre, a decrease of 0.30 per cent compared to July. A decrease of 0.32 per cent was already recorded in June and 0.23 per cent in July. The annual rate thus fell to 1.0 per cent, the lowest value since January 2025, after over five per cent at the beginning of the year. Asking rents, however, showed more dynamism, with 9.93 EUR per square metre (net cold) in August, an increase of 1.5 per cent compared to the previous month and 5.3 per cent compared to the same month last year. The rental market therefore remains the segment with the highest dynamism, although the August figures are considered preliminary.
Sebastian Hein, Director Market Data at VALUE AG, commented that there was hardly any movement to be observed month-on-month in both purchase segments, and both the supply and transaction sides were hovering around the zero line. The crucial development of the summer, however, is evident in the year-on-year comparison: the annual rate for condominiums has fallen from over five per cent at the beginning of the year to one per cent, while existing houses have been able to maintain their lead. This ranking is confirmed by both asking price and transaction data.
