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Germany’s Housing Outlook to 2035: Modest Rebound, Sharper Regional Split

National averages obscure stark local splits that require targeted responses.

Während Wohnungen in vielen Städten teurer werden, stagnieren oder fallen die Preise in strukturschwachen Regionen. München selbst gehört nicht zur Spitzengruppe – dafür aber fast das gesamte Umland der bayerischen Landeshauptstadt.
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BERLIN, GERMANY - MARCH 17: Blocks of flats are picture at Leipziger Strasse during blue hour on March 17, 2026 in Berlin, Germany. (Photo by Florian Gaertner/Photothek via Getty Images)
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Overview

  • The IW forecast projects the median residential price rising from about €3,024 per m² in 2025 to roughly €4,092 in 2035, with real growth near 1.1% a year and 2022 price levels likely regained by 2027.
  • Metropolitan regions and well-connected suburbs are set to lead gains, with Bremen highlighted for about 1.8% real annual growth through 2035.
  • Structurally weaker or shrinking areas face stagnation or declines, with districts such as Erzgebirgskreis, Vulkaneifel and Kronach potentially losing nearly 20% by 2035, and industry-dependent areas like Zwickau under added pressure.
  • BBSR data show Germany’s population at about 83.5 million at end-2025 with a brief plateau followed by slight decline, reinforcing divergent regional demand trajectories.
  • Financing costs have crept higher as effective ten-year mortgage rates move back above 4%, and fresh IVD Süd data from Bavaria show slight price increases for houses and apartments but cheaper building plots.