German Real Estate Prices and Rents Surge Amid Market Shift

Recent data shows a rebound in housing prices and a significant rise in rental costs, reflecting changing dynamics in Germany's property market.

According to the Verband deutscher Pfandbriefbanken (VDP), housing prices in Germany increased by 1.1% in the third quarter of 2024 compared to the previous quarter.
Despite the recent uptick, property prices remain slightly below the levels seen in the third quarter of 2023.
Rental costs for new leases in multifamily homes rose by 5.6% year-over-year, with significant increases in major cities like Berlin and Frankfurt.
The ongoing housing shortage and reduced construction activity continue to exacerbate the situation, prompting calls for government intervention to boost housing supply.
Experts caution against labeling the current price increase as a long-term trend, given the broader economic uncertainties and recent historical price declines.