The property market is experiencing a moderate upward trend. The willingness of prospective buyers to purchase has risen sharply. Demand is diverse, ranging from old buildings and renovation projects to new builds. Apartments and houses for personal use are in demand, as are investment properties.
The expert committees for property values in Germany, together with the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), have presented a comprehensive evaluation of the property market for 2024. The result: following the market correction from 2022 onwards, monetary turnover and transaction figures will rise slightly again, although regional differences will remain significant.
The property market already showed initial signs of recovery last year. Money turnover in 2024 reached around £247 billion, which is an increase of 15 per cent compared to 2023. The number of purchase contracts rose by nine per cent to 805,000, but remained around 20 per cent below the long-term average. Residential property accounted for 73 per cent of all contracts in 2024. The market for owner-occupied homes in particular recovered significantly.
According to the analysis institute bulwiengesa, the property market in 2025 is characterised by little movement, but is facing a turning point. While demand for housing, especially in urban areas, continues to rise, new housing construction lags behind both demand and political targets. The residential property market presents a stable picture without any dramatic movements. "Interest in residential investments has increased significantly in 2025, especially outside the A markets," reports Sven Carstensen, CEO of bulwiengesa AG. "This trend is likely to continue."
The German market for modern living, which is particularly interesting for investors, is benefiting from the general housing shortage. According to experts, this includes student housing, co-/micro living and serviced apartments. In the first half of 2025, this segment experienced a significant upturn: with a volume of €165 million, the total volume for the previous year had already been exceeded by the end of the first half. This is according to a recent analysis by global real estate services provider CBRE.
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