Prices for residential properties in Germany are rising and nearing the summer 2022 peak. Gero Bergmann, president of the Association of German Pfandbrief Banks (vdp), expects further increases due to a growing housing shortage. In the fourth quarter of 2025, prices rose 4.2 percent nationwide year-over-year.
Gero Bergmann, president of the Association of German Pfandbrief Banks (vdp) and board member at BayernLB, highlighted rising property prices at a vdp event in Frankfurt on Wednesday. He noted that the upward trend starting in 2024 continued through 2025.
"Prices for residential properties are now not far from their record level reached in summer 2022," Bergmann stated. He attributed expected further rises to an increasing shortage of housing.
Residential property prices climbed 4.2 percent nationwide in the fourth quarter of 2025 compared to the previous year. In 2022, rapidly rising interest rates had pressured the market, hitting commercial properties harder than residential ones.
Bergmann was cautious about the outlook for 2026. The war in Iran is heightening market uncertainty and fueling inflation, which could make financing more expensive and dampen demand.