Property Valuation
Strategy recommendation
Market signals
Are property prices continuing to fluctuate, or has the market stabilised? Many owners and heirs are uncertain about which market signals really matter. This article provides you with a data-driven analysis of the key indicators, so you can make informed decisions.
With access to Google, BORIS, and Deep Research.
The German real estate market is stabilising in 2025 with expected price increases of 1-3%, driven by stable interest rates and high demand.
A significant supply shortage, with only 175,800 building permits in 2024, supports the prices for existing properties.
The energy status is becoming a critical value factor; renovated properties are gaining value, while unrenovated ones have to expect price reductions.
Are we on the brink of a turning point in the real estate market? After a phase of price corrections, initial indicators for 2025 suggest a stabilisation. For property owners, heirs, and investors, it's now crucial to recognise and interpret the right market signals. An accurate valuation no longer depends solely on the location, but on a mix of interest rate developments, energy efficiency, and regional demand. We show you which key figures you need to know to realistically assess the value of your property and act strategically.
The German property market is showing clear signs of stabilisation after a turbulent period. Mortgage interest rates have settled into a corridor between 3.5% and 4.0%, providing buyers with more certainty in planning. This development is leading to renewed interest in property purchases, as noted by experts from ImmoScout24. The phase of significant price corrections appears to be over; in the first quarter of 2025, the asking prices for existing apartments have already slightly increased by 0.6%. This stability is a key market signal for owners considering a sale. The current market situation requires a precise analysis of market optimisation to identify potentials. This begins a new phase where data-driven assessments are more important than ever.
Experts predict a slight, yet positive, price trend for 2025. Across Germany, an increase of 1% to 3% in residential property prices is expected. This moderate upward movement will be particularly evident in properties located in sought-after areas with good energy efficiency. Demand continues to exceed supply, which supports prices. Condominiums, in particular, show significant dynamism with an increase of 0.99% in the first quarter of 2025. However, the pricing trends will vary significantly by region. While metropolitan areas are seeing growth again, prices in structurally weak areas are stagnating. This differentiation is a crucial market signal for realistic property valuation.
A significant market signal remains the imbalance between supply and demand. In 2024, only around 175,800 building permits were issued, which is far below the political target of 400,000 homes per year. This supply bottleneck is met with a nationwide vacancy rate of only 2.5%, which falls below 1% in major cities. The consequence: rising rents and stable demand for homeownership. Germany remains the most attractive residential investment market in Europe for investors, further increasing demand pressure. For owners, this market signal means that the fundamental value of housing remains high, as can be confirmed by a detailed property market analysis. The shortage of new housing safeguards the value of existing properties.
In addition to the major market trends, the specific characteristics of a property are coming more into focus. The energy condition has become a crucial market indicator. Experts predict price declines for properties with poor energy ratings, while high-quality and renovated properties will increase in value. The depreciation due to the age of the building can be offset by modernisations. The following measures have a particularly positive impact:
Energy-efficient renovation (insulation, windows, heating)
Modernisation of bathroom and kitchen
Adapting the layout to modern living needs
Installation of charging infrastructure for electric cars
Creating or improving accessibility
A professional valuation that takes these factors of market development into account is therefore essential. These details are crucial in determining the achievable sale price today.
The development of mortgage interest rates is a direct market signal for the affordability of real estate. Low interest rates increase demand, while high interest rates dampen it. Currently, interest rates for ten-year loans are moving within a stable corridor of about 3.3% to 3.7%. Experts do not expect any major changes in the short term, but rather a sideways movement, possibly with slight fluctuations toward 4%. This stability provides buyers with a reliable basis for calculation, which stimulates demand. For sellers, this means a more favorable environment, as financing is accessible to a broader range of buyers. The fluctuations in the real estate market are therefore smaller. A data-driven analysis, such as the one provided by Auctoas ImmoGPT, can help you understand the impact of interest rates on your property value accurately.
The market signals for 2025 suggest a stabilisation with slight price increases. However, the property market is becoming more challenging and differentiated. Blanket assumptions about value developments are no longer sustainable. Success in sales or investment depends on a precise analysis of the relevant macro and micro signals – from interest rate trends to energy efficiency. To make the right decisions in this environment, you need an objective, data-driven evaluation. Don't rely on outdated assumptions. A swift and neutral assessment from Auctoa provides the necessary clarity. Act now based on facts.
The Statistische Bundesamt (Destatis) provides comprehensive information on construction prices and the property price index in Germany.
The Deutsche Bundesbank offers a detailed indicator system for the residential property market, which includes important data and analyses.
The Verbraucherzentrale informs about who needs an energy performance certificate for the property and which aspects of energy-efficient refurbishment need to be considered.
The Sparkasse offers a guide with information on property prices and acquiring home ownership.
On Statista, you will find detailed statistics on housing completions in Germany.
The Deutsche Gesellschaft für Immobilienwertermittlung (DEGIV) provides a comprehensive guide to professional property valuation and relevant factors.
What are the key market signals for property owners?
The key signals are local price trends, the development of interest rates, the supply and demand ratio (e.g. vacancy rates, construction activity), and the impact of the property's energy condition on its value.
How can I get a realistic valuation for my property?
You can obtain a realistic valuation through data-driven methods that take current market signals into account. Tools like the ImmoGPT from Auctoa or a professional valuation by our experts provide a quick and objective assessment.
Why has the energy condition become so important?
Rising energy costs and legal requirements (Building Energy Act) have made the energy condition a central value factor. Buyers are increasingly focused on running costs and the sustainability of a property, which is directly reflected in the price.
Does location no longer matter?
Location remains a very important factor. However, it is no longer the sole guarantee of value appreciation. Nowadays, a good location must be complemented by other positive features such as a modern condition and high energy efficiency to achieve the top price.
Should I renovate before selling?
Whether renovation is worthwhile depends on the individual case. Energy renovations and modernising bathrooms or kitchens can often significantly increase value. A cost-benefit analysis as part of professional advice is recommended here.
