German property prices surged, especially in major cities

German residential property prices have significantly increased in the first quarter of 2025, marking the largest price growth since mid-2022. This surge is particularly noticeable in major cities. The German Real Estate Index (GREIX) shows that apartment prices rose 3.2% year-over-year, while single-family homes increased 4.7%, and multi-family homes saw an 8.7% rise. Transactions are up nearly a third compared to the previous year. Experts suggest buyers are adapting to the market, anticipating the bottom has been reached. The government plans to accelerate housing construction through new legislation and incentives, aiming to ease homeownership.