Real estate sales rise - but far below record level - Bavaria's housing market rebounds in 2025—but growth stays cautious
Bavaria's property market showed signs of recovery in 2024, with the trend continuing into 2025. Sellers found it easier to offload homes as transactions picked up across the region. However, growth remained slower than in many other parts of Germany.
The state's real estate sector grew more cautiously than elsewhere in 2025. While national house prices climbed by 2-3% compared to 2024, Bavaria saw a modest rise of just 1-1.5%. Higher mortgage rates and market saturation held back stronger gains, unlike in Baden-Württemberg or North Rhine-Westphalia, where prices jumped by 4-5%. Apartment prices in Bavaria barely moved, edging up by only 0.5% against a 2.5% national increase.
Despite subdued price growth, activity surged. Transactions rose by nine percent, pushing the total market value to €54.4 billion. Analysts noted that this uptick reflected a genuine recovery in demand rather than inflationary pressures.
Bavaria's market stabilised in 2025, though growth stayed modest compared to other states. The rise in transactions signalled renewed confidence among buyers and sellers. Yet with mortgage rates still high and regional demand uneven, sharp price increases appear unlikely for now.
