Recent data from the Institute for World Economics (IFW) showed a slowdown in the pace of decline in real estate prices in German cities over the past year, indicating relative stability following a period of sharp decline.

According to the real estate prices "Graix," which tracks performance in 19 cities and regions, residential apartment prices fell by 1.5% in 2024 compared to the previous year, after adjusting for inflation. Despite the overall downward trend, cities such as Frankfurt and Leipzig recorded increases in apartment prices of 3.9% and 1.5%, respectively, while Hamburg saw the largest decline of 4.9%.

Family homes, meanwhile, saw a 1.6% decline, while prices for multi-family homes fell by 3%. Over the past few years, urban real estate prices rose steadily until they peaked in 2022, before 2023 saw the largest decline since data collection began, with a drop of 8.9% for residential apartments and 20.1% for multi-family homes.

Real estate experts believe the market has bottomed out, raising hopes for price stability in the coming periods, despite ongoing macroeconomic challenges and the impact of interest rates.