German Home Price Growth Slows in Q2
German home prices rose 0.6% year over year in the second quarter, marking the smallest gain since the property market began recovering in late 2024. Higher interest rates following the Iran conflict have damped ongoing demand for real estate.
Germany home prices rose 0.6% year-on-year in the second quarter of 2026, marking the seventh consecutive quarterly gain. The slowdown follows a downwardly revised 1.2% increase in the first quarter. Higher borrowing costs tied to the conflict in Iran have dampened residential property demand across Europe's largest economy.
