The biggest surprise in Germany’s housing market isn’t that prices fell — it’s how cleanly the cycle flipped. After years of steady gains, the market peaked at a house price index of 167.40 in Q2 2022, then moved into a sharp correction before finding its footing again in 2024 and 2025.
From 108.80 in Q3 2016 to 162.50 in Q4 2021, the index climbed for years, powered by strong annual growth that reached 12.76% in Q3 2021. But the momentum didn’t last: the downturn hit fast, with the steepest quarterly drop arriving in late 2022 and the index sliding into 2023.
What stands out now is stabilization. The latest reading is 153.70 in Q4 2025 — still below the 2022 peak, but clearly above the cycle’s low point. In other words, Germany’s market hasn’t snapped back to its highs, but it also isn’t in free fall anymore. It looks more like a reset than a collapse.
Read the full analysis with interactive charts and district-level data on Realty Pulse
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