German property market rebounds 12% in first quarter
Germany’s real estate market is showing strong signs of recovery, with national transaction volumes rising 12.1% in the first quarter of 2025 compared with the previous quarter, according to new data from the German Property Federation (IVD). Total transactions reached €70.2 billion, extending a market rebound that began in mid-2024.
The IVD attributed the upswing to growing investor confidence and a stabilising market environment.
“Willingness to invest is growing – as shown by the nationwide upward trend, which is visible to varying degrees across all federal states,” said IVD President Dirk Wohltorf. “This trend is supported by a favourable market environment: mortgage rates have stabilised, prices are steady or only slightly increasing. After the severe uncertainty caused by the so-called heating law and the resulting collapse in purchasing appetite, confidence in the property markets is gradually returning.
“The significantly rising real estate turnover proves that private individuals consider buying houses and apartments attractive – whether as a primary residence or retirement investment. According to a representative Forsa survey published in February, 67% of tenants would like to own a property.”
Berlin recorded the strongest year-on-year growth during the first quarter (+56.1%), Saxony (+44.1%), and Hesse (+41.1%), while Rhineland-Palatinate saw the smallest rise, at 2.5%.
North Rhine-Westphalia remained Germany’s largest real estate market by volume, accounting for 19.5% of nationwide transactions, just ahead of Bavaria (19.2%) and Baden-Württemberg (14.0%). The IVD’s figures are based on all private and commercial real estate deals subject to real estate transfer tax, excluding share deals and transactions related to inheritance or gifts. The organisation said the positive momentum is likely to continue as financing conditions remain favourable and prices hold steady.
