A sign reads "new tenant wanted" in a window of a commercial building in Frankfurt, Germany, July 19, 2023. Germany's property sector is in stress, underscoring a major change of fortune for real estate in Europe's largest economy after an end to the era of cheap money. REUTERS/Kai Pfaffenbach
A sign reads "new tenant wanted" in a window of a commercial building in Frankfurt, Germany, July 19, 2023. Germany's property sector is in stress, underscoring a major change of fortune for real estate in Europe's largest economy after an end to the era of cheap money. REUTERS/Kai Pfaffenbach
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Business & Economy

German home prices rise but pace slows

FRANKFURT, June 25 (Reuters) – German home prices rose modestly in the first quarter of 2026, marking the sixth consecutive quarterly gain as the property sector in Europe’s largest economy seeks stability after a deep recession, data showed on Thursday.

• The gain of 1.4% from a year earlier was, however, the smallest rise since prices began increasing in late 2024.

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• It follows a downward revision for the fourth quarter of 2025, to a 2.6% increase compared with a preliminary 3% gain.

• Buyers are cautious, experts say, pointing to geopolitical risks, rising unemployment, slower wage growth and higher mortgage rates.

(Reporting by Tom Sims and Rene Wagner, editing by Thomas Seythal)

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By Reuters | Reuters | © Copyright Thomson Reuters 2026.

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