Germany house prices rise 1.0% in Q3 2026 as office values fall 3.9%

German homes were +1.0% year on year in Q3 2026 while offices fell 3.9% and new-lease rents rose 3.5% — the yield side is moving, the price side is not.

The facts

German residential property prices were +1.0% year on year in the third quarter of 2026, and all property types together only +0.2%, on the vdp property price index published on 10 November 2026.
Against the second quarter, housing slipped 0.1% and all property 0.2%.
Condominiums rose 2.3% over the year, one-family houses 1.3%, and multi-family rental blocks 0.5%.
Office values fell 3.9% on the year and 1.0% on the quarter; retail was unchanged at 0.0% over twelve months.
Rents on new residential leases rose 3.5% year on year, ahead of office at 2.5% and retail at 1.7%.
Across the seven largest cities residential prices averaged 1.4% year on year — Hamburg 2.4%, Frankfurt 1.6%, Cologne 1.4%, Stuttgart -0.5% — yet all seven fell against the second quarter, between 0.4% in Düsseldorf and 0.9% in Stuttgart.

What it means for your money

Entry into German housing costs barely more than a year ago, while new leases command 3.5% more rent. Yields are widening, not prices.
If you already own German residential, the -0.1% quarterly dip and the fall in all seven big cities mean resale pricing is not working for you right now, while a rent reset at tenant turnover still does.
Glopra puts the German national average at $3,066 per square metre with a bubble risk score of 51 out of 100, in the moderate band, so the entry price is not the stretched part of this market and the rental line is doing the work.
Office exposure is the opposite trade: -3.9% on capital values against only 2.5% rent growth, which is how a yield rises for the wrong reason.

What to watch

vdp states that its figures for the seven largest cities still use its previous methodology, after a change at the start of 2026 made under a new cooperation with the Bundesbank, and that they will be aligned with the Bundesbank index for those seven cities by the first 2027 release at the latest, so city comparisons against older numbers are not on the same basis.
The index publishes percentage changes only, on a 2022 = 100 base, and no absolute price levels in euros, so the vdp figures cannot be read as a price per square metre.

Sources: vdp https://www.pfandbrief.de/en/rise-in-residential-property-prices-loses-momentum/; vdp https://www.pfandbrief.de/en/press-releases/

Market data: Düsseldorf · Berlin · Leipzig · Frankfurt