GREIX sales price index Q2 2025: Moderate price growth in real estate

These insights are based on the latest update of the German Real Estate Index (GREIX), a joint project of the local expert committees for property values (Gutachterausschüsse für Grundstückswerte (GAAs)), ECONtribute, and the Kiel Institute for the World Economy (Kiel Institute).

Compared to the previous quarter (Q2 2025 to Q1 2025), apartment prices rose by 0.7 percent. Multi-family houses increased in price by 1.0 percent. Single-family houses saw the strongest growth, with prices rising by 2.0 percent.

Adjusted for inflation, prices for apartments and multi-family houses remained unchanged, while single-family houses became slightly more expensive, gaining just over 1 percent.

“We're seeing a similar trend as in the first quarter of 2025. Prices are continuing to rise, but there are no major jumps,” says Jonas Zdrzalek, real estate market expert at the Kiel Institute.

Compared to the same quarter of the previous year (Q2 2025 to Q2 2024), the picture is somewhat clearer: prices for both apartments and multi-family houses rose by 2.7 percent. Single-family houses increased in price by as much as 3.7 percent.

Leipzig leads in price growth

Across Germany’s eight largest cities (Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich, Stuttgart), real estate prices largely plateaued, while Leipzig stood out by reaching a new all-time high.

There, prices rose by 2.9 percent compared to the previous quarter (Q2 2025 to Q1 2025). “Price levels in Leipzig are still relatively low on a per-square-meter basis. This leaves considerable room for further growth, which now appears to be materializing,” says Zdrzalek.

More modest gains occurred in Düsseldorf (+1.0 percent), Cologne, and Frankfurt (each +0.9 percent). Slight declines were observed in Stuttgart (-0.6 percent) and Berlin (-1.0 percent), though both cities had already seen relatively strong increases in the previous quarter.

This puts Leipzig well ahead of the other top 8 cities in terms of real estate dynamics. In most major cities, prices are still well below their peaks from 2022. On average across the country, the gap remains over 10 percent, and exceeding 15 percent in Munich, Hamburg, and Stuttgart.

If the current moderate price momentum continues, new all-time highs for apartments nationwide would not be reached until 15 quarters from now—that is, in early 2029.

Outside the top 8 cities, property prices mostly increased quarter-on-quarter. The strongest gains were seen in Kreis Mettmann (+5.4 percent) and Rhein-Erft-Kreis (+3.0 percent). For the first time, GREIX now includes a dedicated index for North Rhine-Westphalia (NRW), showing that price growth in this state has outperformed the national average compared to the previous quarter.

Number of transactions on the rise

The number of property transactions increased compared to the same period last year: sales of multi-family houses rose by 25 percent, apartments by 16 percent, and single-family houses by 9 percent.

“Market activity has picked up significantly, but it’s still too early to speak of a boom,” says Zdrzalek. “The recent increase in property values—particularly when adjusted for inflation—appears to be driven largely by individual factors rather than a broad-based market upswing.”

The Greix is a price index based on a hedonic regression method. This method mitigates price distortions that often arise when using average price per square meter. For instance, if a high number of large apartments in a prime location are sold in a given year, this can inflate average prices per square meter. However, such fluctuations may not reflect a general increase in real estate values. Using hedonic regression methods, specific property characteristics do not cause upward or downward distortions in the price trend.