Germany house price growth slows to 0.6% in 2026 Q2

House prices in Germany were 0.6% higher in 2026 Q2 than a year earlier, according to Eurostat. The figure refers to nominal prices and shows that values were still rising on an annual basis, but only modestly. It is the weakest annual rate in the run of quarterly data available to Housing Market Group for this article, which goes back to 2025 Q2.

The latest reading continues a gradual loss of momentum. Eurostat data show annual growth of 3.3% in 2025 Q2, followed by 3.2% in 2025 Q3 and 2.6% in 2025 Q4. The rate then dropped to 1.2% in 2026 Q1 before easing again to 0.6% in 2026 Q2. Based on HMG calculations from the Eurostat figures, the annual rate fell by 0.6 percentage points between 2026 Q1 and 2026 Q2. Measured over a full year, the slowdown is larger: the rate in 2026 Q2 was 2.7 percentage points lower than in 2025 Q2. Each quarter in this sequence shows slower annual growth than the quarter before it, with the sharpest step down coming between 2025 Q4 and 2026 Q1.

Germany's position looks very different when set against Spain. According to Eurostat, Spanish house prices were 12.1% higher in 2026 Q2 than a year earlier, far above the German rate for the same quarter. Growth has also eased in Spain, but by less. HMG calculations from Eurostat figures show that the Spanish annual rate in 2026 Q2 was 0.7 percentage points lower than in 2025 Q2, compared with the 2.7 percentage point decline seen in Germany over the same period. In other words, both markets recorded slower annual growth over the year to 2026 Q2, while the gap between Spain's strong rise and Germany's slight increase remained wide.

Taken together, the figures describe a German housing market where prices were still higher than a year before in 2026 Q2, but where the pace of annual increases has narrowed quarter after quarter since 2025 Q2. The data published by Eurostat cover the national level only, so they do not show how individual regions or cities within Germany have moved. The comparison with Spain highlights how differently national markets in Europe have developed over the same period.