In the third quarter of 2026, the German market for prime property recorded contrasting demand trends. While interest in high-end condominiums picked up again compared to the same quarter of the previous year, demand for premium houses dropped noticeably. At the same time, asking prices fell in both segments. This emerges from a recent analysis by brokerage firm DAHLER, based on supply and demand data from ImmoScout24 for the top 7 cities, reflecting the most expensive decile of the total supply in each case.
Revival in condominiums alongside falling prices per square metre
The premium condominium segment recorded a 2.6 per cent increase in demand in the third quarter of 2026 compared to the prior-year period. Significant increases in prospective buyer enquiries were seen in Stuttgart, with a rise of 22.9 per cent, and in Berlin, with 20.6 per cent, followed by Cologne with 7.3 per cent and Hamburg with 5.4 per cent. By contrast, declines were recorded in Munich at minus 20.3 per cent, Frankfurt am Main at minus 18.9 per cent, and Düsseldorf at minus 1.1 per cent. Total supply of premium flats shrank by 9.3 per cent over the same period, with Düsseldorf seeing the sharpest decrease at minus 15.3 per cent.
Alongside the expansion in enquiries, asking prices for premium flats softened. The median fell by 7.6 per cent to EUR 9,135 per square metre. Stuttgart recorded the sharpest decline among the top 7 cities, dropping 9.4 per cent to EUR 7,000 per square metre, followed by Munich at minus 8.5 per cent to EUR 13,734 per square metre. The Bavarian state capital thus remains the most expensive prime apartment market. In Berlin, the median value fell by 8.0 per cent to EUR 8,490 per square metre, reaching its lowest level since early 2023. In Hamburg, prices dropped by 7.0 per cent to EUR 11,238 per square metre, whilst Frankfurt am Main at minus 3.5 per cent to EUR 9,874 per square metre, Düsseldorf at minus 1.8 per cent to EUR 8,220 per square metre, and Cologne at minus 0.4 per cent to EUR 7,970 per square metre showed more moderate declines.
Restraint in single-family houses with Cologne as an exception
In the premium house segment, the market was noticeably more subdued. Demand dropped across all cities by 11.9 per cent compared to the prior-year quarter. Cologne was the sole exception, recording a 10.0 per cent increase in enquiries. All other major cities registered declines, led by Frankfurt am Main at minus 26.3 per cent and Hamburg at minus 21.5 per cent. In Berlin, interest fell by 11.4 per cent, and in Munich by 9.7 per cent. The number of advertised houses decreased by an average of 7.6 per cent, with Düsseldorf being particularly hard hit with a 24.0 per cent decline. In Berlin, by contrast, supply rose by 4.2 per cent.
Median asking prices for premium houses fell by 7.1 per cent to EUR 9,759 per square metre. Cologne recorded the most significant price reduction, down 11.5 per cent to EUR 8,158 per square metre, closely followed by Frankfurt am Main at minus 11.1 per cent to EUR 9,041 per square metre and Hamburg at minus 8.2 per cent to EUR 10,048 per square metre. Munich retained its leading position as the most expensive housing market, despite a 5.5 per cent correction to EUR 14,182 per square metre. In Berlin, prices remained largely stable with a decline of 2.2 per cent to EUR 9,350 per square metre.
Björn Dahler, founder and managing director of DAHLER, classifies the development as an ongoing price discovery phase. Whilst some prospective buyers ready to purchase are still waiting for further price discounts, the increased demand for condominiums shows that price expectations in this sub-segment have already converged noticeably. On the seller side, however, a wait-and-see attitude continues to prompt many owners to hold off on listing their properties for now, tangibly restricting the supply available on the market.
