Germany’s Home Prices Rise 13.8% as Growth Shifts Regions

Key Takeaways

• Germany’s average home price rose +13.8% between 2021 and 2026.
• Hamburg remains the most expensive at €5,633 per m², despite a -8.3% decline.
• The fastest growth occurred in mid- and lower-priced states, led by North Rhine-Westphalia (+16.8%) and Brandenburg (+16.2%).
• Eastern regions remain the most affordable overall, but are seeing stronger demand and rising prices.
• Growth is increasingly concentrated outside traditional hotspots, particularly in areas near major cities such as Brandenburg and Mecklenburg-Vorpommern.
• Across regions, higher borrowing costs, limited supply, and weak new construction are continuing to shape German housing markets.

Between Q1 2021 and Q1 2026, the average asking price for a home in Germany rose from €2,642 to €3,007 per square meter. That is an increase of 13.8%.

However, that doesn’t mean prices are rising everywhere in the same way. 

Average House Prices in Germany By State

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In 2026, Hamburg remains the most expensive market at €5,633 per square meter, despite a -8.3% decline since 2021.

Berlin also stayed very expensive at €5,308 per square meter, and even rose over time (+3.2%). In southern states such as Baden-Württemberg and Bavaria, prices also stayed high, with moderate long-run growth.

These regions share a similar structure:

• Strong demand in large cities.
• Limited housing supply, especially in central locations.
• Slow new construction due to land scarcity, planning rules, and high construction costs.

They also tend to be major economic centers with many jobs and strong purchasing power, which helps keep prices elevated even when growth slows.

The strongest price gains are now appearing in markets just below the very top tier, such as:

• North Rhine-Westphalia: +16.8%
• Brandenburg: +16.2%

After financing costs rose, affordability weakened in Germany’s top-tier housing markets. At the same time, housing remained scarce, so demand and price growth continued in more affordable regions,

These areas are still more affordable than major cities, but they are becoming more competitive.

If you’re looking for the cheapest home prices, this can mostly be found in Eastern states:

• Saxony-Anhalt: €1,526
• Saarland: €1,758
• Thuringia: €1,855

These levels reflect lower incomes, weaker demand, and less housing pressure, which keep prices down compared to the major metropolitan markets.

But not all eastern regions are moving at the same pace.

• Brandenburg: +16.2%
• Mecklenburg-Vorpommern: +13.9%

These areas may benefit from demand spillover from nearby cities like Berlin, as some buyers look for more space or lower costs near major urban centers.

Across all regions, the same underlying forces are at work:

• mortgage rates and restrictive lending conditions have weakened affordability
• construction costs remain high
• housing shortages persist

Together, these factors did not eliminate demand. Instead, price growth has become more uneven across regions.

Germany still has large regional price gaps, and some of the stronger gains are now appearing in markets outside the very highest-priced centers.

For anyone looking at the market today, the question is becoming less “Where is cheapest?” and more “Where is demand moving next?”