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German Property Prices Rise as Bundesbank Launches New Commercial Index

The new data point to a gentle uptrend regulators deem fragile.

Overview

  • The Bundesbank’s first transaction-based index shows German commercial property prices up 2.1% year over year in the first quarter of 2026.
  • The index draws on more than 300,000 deals since 2013 and breaks out offices, retail, and multi-family buildings across five regional tiers.
  • Separate figures from the Pfandbrief banks’ association indicate a 2.2% rise for all property types in Q1, with housing up 2.3%, offices 1.9%, and retail 1.5%.
  • Price gains are strongest in big cities, with Hamburg leading among major metros and differing methods yielding 2.7% to 3.6% growth for the top seven cities.
  • Ten-year mortgage rates sit near 3.95%, and economists expect only a mild drag on prices as wage growth and scarce supply support demand, even as the Bundesbank warns that sharp revaluations could strain lenders.