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German home prices stagnate as interest rates pressure market, IW data show

By Thomson Reuters Oct 23, 2026 | 1:34 AM

FRANKFURT, Oct 23 (Reuters) – German home prices hardly rose in the third ​quarter, according to ‌data released on Friday by the German Economic Institute (IW), as higher interest rates weigh ‌on ​purchases.

• Apartment ⁠prices rose 0.3% ⁠from a year earlier, while single-family homes and duplexes rose 0.4%.

• “Prices have largely ​been moving sideways since 2023 and are ⁠down 10% ⁠from their 2022 peak,” ​IW said.

• The data ​come ahead of official third-quarter ‌figures from Germany’s statistics office, which are due on December 23.

• Official ⁠data showed home prices rose slightly in the second quarter.

• “Due ⁠to ‌higher financing costs, ⁠demand for properties for ​sale ‌has declined, which ​is why ⁠prices have essentially remained stagnant,” IW said.

(Reporting by Rene Wagner; writing by Tom Sims; editing by ​Ludwig Burger)