Germany house price growth slows in 2026 Q2

Prices of existing dwellings in Germany were 0.5% higher in 2026 Q2 than in the same quarter a year before, according to the Statistisches Bundesamt (Destatis). The figure is in nominal terms, so it is not adjusted for inflation, and it covers existing homes only, not newly built ones. It is the smallest annual increase in the period from 2025 Q2 to 2026 Q2.

The latest reading continues a steady loss of momentum. Destatis put annual growth at 3.2% in 2025 Q2, and the rate then edged up to 3.6% in 2025 Q3. From there it eased to 2.5% in 2025 Q4 and to 1.1% in 2026 Q1, before slowing again to 0.5% in 2026 Q2. Across this run, 2025 Q3 marks the high point, and each quarter since has recorded a smaller annual gain than the quarter before it.

Housing Market Group's calculations from the Destatis figures show the size of the shift. Between 2026 Q1 and 2026 Q2, the annual growth rate fell by 0.6 percentage points. Compared with 2025 Q2, when prices were rising at 3.2% a year, the rate in 2026 Q2 was 2.7 percentage points lower. In other words, much of the cooling has come in the most recent quarters, with the step down from 2025 Q4 to 2026 Q1 and the further decline into 2026 Q2 accounting for a large part of the change.

It is worth being precise about what these numbers do and do not say. A smaller positive rate means prices in 2026 Q2 were still above their level a year earlier in nominal terms, but by a narrower margin than at any point in the period covered here. The data do not show prices falling on an annual basis. Because the series is nominal, the figures also do not indicate how house prices moved relative to the general cost of living over the same period.

The figures describe the national market as a whole. They do not break the change down by region or city, so they cannot show whether the slowdown has been broad or concentrated in particular areas. What the Destatis series does show is a clear pattern for existing dwellings in Germany: annual price growth peaked at 3.6% in 2025 Q3 and has narrowed in each quarter since, reaching 0.5% in 2026 Q2.