Europe - Real Estate/Property: German house price tracker – Q1 2026

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Europe - Real Estate/Property: German house price tracker – Q1 2026

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Europe - Real Estate/Property

German house price tracker – Q1 2026

Industry Overview

Rent growth falls to a decade low as A-cities stall 12 May 2026

According to the latest empirica data, residential rents rose 3% annualised in 1Q26, a Equity

harsh easing from the 4% to 5% growth seen in 2016-25 (Exhibit 2). A-cities showed the Europe

sharpest loss of momentum, with rents down 0.3% since Dec.25. This was mainly driven by Real Estate/Property

Berlin, where rents are set to fall 2-3% annualised, while Hamburg, Frankfurt and Equity Research

Düsseldorf continued to post robust growth. In clear contrast, B-cities are outperforming Markus Kulessa >>

again, with rents accelerating to more than +5% annualised (see Exhibit 2 and Exhibit 9). ResearchBofASE (France)Analyst

+33 1 8770 0382

German house price steady despite lower rent growth… markus.kulessa@bofa.com

German residential prices rose by 0.6% in the first three months of 2026, rebounding after MarcResearchMozziAnalyst>>

a softer 4Q25. Sequential growth returned to positive territory (after -0.1% Q/Q in the BofASE (France)

+33 1 8770 0374

previous quarter), implying annualised price growth of around +2.5% for 2026: broadly in marc.mozzi@bofa.com

line with 2025. Thomas Hynes >>

- A‑cities (Germany’s seven largest cities) recorded the slowest growth of +0.4% Y/Y. ResearchMLI (UK) Analyst

- B -cities outperformed, with prices up +2% as they recovered from a weaker 4Q25. +44thomas.hynes2@bofa.com7 889 010 538

- Listed residential should see FY26 valuation growth remain slightly below broader Credit Research

market trends, but also broadly stable versus 2025. Mark Xu, CFA Research Analyst

BofASE (France)