German residential property prices climbed 3.8% year-over-year in the first quarter of 2025, marking the second straight quarterly increase following a sharp downturn during the country’s recent housing slump, according to data released Tuesday by the federal statistics office.
The rebound comes after home prices began falling in 2022, ending more than a decade of growth. The decline was triggered by the European Central Bank’s aggressive interest rate hikes aimed at controlling soaring inflation, which in turn plunged Germany into its most severe real estate crisis in decades.
