House prices in German towns and cities were up in 2021 by 7% on the year.

Urban house price growth in Germany brisk again in 2021

Urban house prices in Germany saw another brisk increase in 2021, according to Bundesbank calculations based on price data from bulwiengesa AG.

Prices for residential real estate in the 127 German towns and cities rose by 7% in 2021, which is a somewhat stronger rate of increase than the 6½% recorded one year earlier. Strong price appreciation was also registered in the seven largest German cities (Berlin, Cologne, Düsseldorf, Frankfurt am Main, Hamburg, Munich and Stuttgart), where 2021 prices were 7½% up on the year, following an increase of 7¼% in 2020.

Rents for new lettings in 2021 rose at roughly the same pace as in the year before, with rents for urban housing appreciating by 2½%, following an increase of 2¼% in 2020. Rental prices in the seven largest German cities grew by 2¾%, as in 2020.