Housing market data Q3/2025: Current market trends and 2025 revision
The empirica housing market index for Q3/2025 shows differentiated developments on the German residential real estate market. Despite rising interest rates, advertised purchase prices have recovered, benefiting from scarcity and higher incomes, but also from a habituation to the new interest rate level. Currently, however, increasing uncertainty (caused by the threat of cuts in household income due to the loss of competitiveness of German companies) is slowing down the elimination of scarcity.
In the existing housing stock, the index for single-family and two-family houses rose again in Q3 2025. The increase compared to the previous quarter was 1.1%, while the year-on-year increase of 2.4% represents a change in trend. The index for condominiums rose slightly by 0.8% compared to the previous quarter (Q2 2025), with growth of 3.0% for the year as a whole as of Q3 2024. The indices for rental apartments grew slightly more strongly, at 1.1% compared to the previous quarter. However, the increase compared to the previous year is more significant, at 4.7% compared to Q3 2024.
Prices for new buildings continue to rise, as they are underpinned by construction costs. Otherwise, projects would not be feasibl For existing properties, price trends depend heavily on the condition of the building and its energy efficiency: the greater the need for renovation, the greater the price reduction, although there is a high degree of uncertainty here with regard to future regulations and subsidies.
Revision 2025
Due to the massive slump in building permits since 2022 and as a result of completions and advertised new construction supply, as well as the diverging price trends for new and existing properties, a fundamental revision of the empirica housing market index was carried out. The key change concerns the new-build index, which now only reflects prices for new flats built in the last three years and planned projects (instead of the last ten years). No values are shown for regions without sufficient new-build supply in this narrower age category. The existing property index has also been revised to take greater account of shifts in the supply mix (e.g. a higher proportion of older flats). The entire time series has been revised on the basis of the new methodology; the new values are no longer comparable with previous calculations and should only be used for temporal analyses.
Data basis empirica housing market index
All empirica housing market index data can be obtained as individual data sets or via database access from empirica regio. Further figures can be found in the quarterly publication on the index.
