Germany is facing growing problems with mortgage payments in the real estate market. Low interest rates inflated a real estate bubble created by the ECB between 2009 and 2022. During this period, hundreds of banks shifted away from lending to businesses and into the mortgage business

Prices fell in the second quarter when adjusted for inflation. It is proving difficult to find buyers for many houses and apartments. This is evidenced by the latest data from the Greix Index, calculated by the Kiel Institute for the World Economy (IfW).

From April through June, inflation-adjusted prices declined: by 2.1% for apartments, 0.7% for single-family homes, and 5.9% for multi-family homes.

In the first half of 2026, we listed nearly 15% more properties for sale than in the second half of 2025. At the same time, demand from potential buyers has dropped significantly.

Rainer Braun, an economist and board member at the Berlin-based research firm Empirica, also does not believe that the residential real estate market is in general decline. “We shouldn’t read too much into minor increases or decreases in supply data,” says Braun.

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