Market Outlook: Is 2025/2026 a Good Time to Buy Property in Germany?
Interest rates have stabilized, and prices in some cities have dropped. We analyze whether we are currently in a 'Buyer's Market' and what experts predict for the coming years.
InvestBud Team
Investment Analysts
After years of overheating, the German property market cooled down significantly in 2023 and 2024. Now, as we look at 2025/2026, the question on everyone's mind is: Have we reached the bottom, and is now the perfect window to enter the market?
1. Interest Rates vs. Prices
While the era of 1% interest rates is gone, rates have stabilized around 3.5% - 4%. In response, property prices in major cities have corrected downwards by 5-10% from their peak. This correction seems to be slowing down, suggesting that waiting for further massive drops might be a gamble.
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2. The Supply Shortage
The fundamental driver remains: Germany has a massive housing shortage. New construction has stalled due to high material costs. This lack of supply ensures that property values—especially in B-locations and commuter belts—will likely rise again in the medium term. Buying now allows you to negotiate prices that were non-negotiable two years ago.
Written by
InvestBud Team
Our team of investment analysts brings you data-driven insights on the German real estate market. We combine financial expertise with local market knowledge to help you make smarter investment decisions.
Test this investment idea on your own address
Pick a location and enter the purchase price. We'll prepare rental yield, cash flow, tax impact, and the cost breakdown as a private report.
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