Purchase prices for residential property in Germany decreased slightly in the second quarter of 2026. This is evident from the current price and market rent indices from Fahrländer Partner Raumentwicklung (FPRE). Condominiums, in particular, showed a more significant decline than detached and semi-detached houses. At the same time, there was a slight increase in residential rents, while office rents also saw a marginal dip quarter-on-quarter.
Prices for condominiums fell nationwide by 1.5 per cent compared to the previous quarter and were 1.7 per cent below the level of the previous year. For detached and semi-detached houses, the decline was less pronounced, at 0.7 per cent compared to the previous quarter. Compared to the same quarter of the previous year, prices for detached and semi-detached houses remained almost stable, with a gain of 0.2 per cent. Overall, the residential property index decreased by 1.1 per cent quarter-on-quarter and by 0.5 per cent year-on-year.
Regionally, a mixed picture emerged for residential property prices. While the residential property index in Lower Saxony increased by 2.3 per cent year-on-year, and remained at the previous year's level in North Rhine-Westphalia, other federal states experienced declines. In Bavaria, the residential property index fell by 2.1 per cent, in Baden-Württemberg by 1.2 per cent, and in Hesse by 0.8 per cent compared to the same quarter of the previous year.
In the residential rental sector, a nationwide increase of 0.4 per cent was observed in the second quarter compared to the previous quarter. Compared to the same quarter of the previous year, rents remained almost at the same level, with a marginal decrease of 0.2 per cent. In the so-called BIG7 cities, there was also a slight increase of 0.3 per cent quarter-on-quarter, although rents were 0.5 per cent lower year-on-year.
Office rents nationwide decreased by 0.9 per cent quarter-on-quarter, but still recorded an increase of 2.0 per cent compared to the same quarter of the previous year. In the BIG7 cities, office rents fell by 0.7 per cent quarter-on-quarter and rose by 1.7 per cent year-on-year. These market data correspond with the results of the FPRE Spring Survey 2026. For the purchasing market, the majority of surveyed property experts expect stable to slightly declining prices for the coming twelve months. For residential rents, however, rising trends are still predicted, while expectations for the office market remain subdued.
