Residential property prices in Germany climbed for a fourth straight quarter between July and September, rising 3.3% from a year earlier, according to data released on Tuesday by

the Federal Statistics Office.

The figures signal a continued recovery in Europe’s largest housing market following a prolonged downturn between early 2022 and 2024, when prices fell by around 13%. Average prices increased across all regions compared with the same period last year, with the strongest gains recorded in urban areas and major cities.

Single-family homes posted a 3.6% annual increase in the third quarter, while prices for two-family homes rose 3.5% in urban centres. In rural areas, residential property prices were up 3.2% year on year.

On a quarterly basis, prices advanced 1.0% in the third quarter compared with the previous three months.

Looking ahead, a Reuters survey of real estate analysts conducted last month forecasts German residential property prices to rise by 3.5% this year, followed by gains of 3.4% in 2026 and 3.2% in 2027.