German Housing Market: Stability and Shifts in Prices
As of: March 25, 2026 3:05 p.m
Home ownership remains a significant goal for many, but the German housing market is experiencing a nuanced period of stability and change. While prices for existing houses in South Holstein remain relatively stable, used apartments have seen a rise of around nine percent. New construction, however, presents a contrasting trend.
Current Market Overview
According to the LBS Real Estate Atlas, the average price per square meter for used single- or two-family houses in the Hamburg area is €3,182, compared to an average of €5,139 in Hamburg itself. Significant price variations exist depending on the specific location, both within the city and its surrounding areas. Prices for existing condominiums are increasing by four percent in Hamburg and nearly seven percent in the surrounding region. Conversely, the cost of new houses in South Holstein remains stable year-over-year, while newly built apartments in the Hamburg area are becoming more expensive.
Regional Price Variations: Houses
The most expensive locations for used single- and two-family homes are concentrated in specific areas. Houses in Wentorf/Aumühle (Duchy of Lauenburg district), Ahrensburg, and Reinbek (both Stormarn district) command prices between €4,200 and €4,600 per square meter. More affordable options can be found in Wedel or Pinneberg, where prices average around €3,800.
Condominium Market: Bad Oldesloe Boom
South Holstein and the more affordable districts surrounding Hamburg share a similar price level for used condominiums, averaging €3,250 per square meter. However, this represents an increase of around nine percent compared to the previous year. The area around Bad Oldesloe (Stormarn district) has experienced a particularly significant surge, with prices rising by 63 percent compared to 2025. Geesthacht, while still experiencing growth (9.1 percent), remains below the average at €2,700 per square meter.
New Construction Trends
New construction costs are diverging from the trends observed in existing properties. Prices for new houses in South Holstein remain stable compared to the previous year, averaging around €3,800 per square meter. However, properties near the Hamburg city limits are considerably more expensive, exceeding €5,000 in Wedel.
New construction in Hamburg is becoming more expensive, with prices increasing by 5.6 percent to €5,698 per square meter. Nienstedten is the most expensive area, with prices exceeding €10,000 per square meter.
Demand and Future Outlook
Demand for new buildings has significantly decreased, with real estate developer Dahler reporting a nearly 50 percent drop. This shift is contributing to a normalization of apartment prices, according to Jens Riemer from LBS NordOst.
Hamburg: Prime Locations Command Premium Prices
In Hamburg, waterfront locations continue to be the most expensive. The average price per square meter for both condominiums and single- or two-family homes exceeds €10,000 in areas like Harvestehude (€15,025) and Hafencity (€12,495). Southern outskirts of the city offer more affordable options, averaging €3,000 per square meter.
The number of people owning their own homes in Schleswig-Holstein is decreasing, reflecting a nationwide trend.