Residential real estate prices are increasing once more
In Baden-Württemberg, the residential real estate market has seen a notable increase in potential buyers due to moderate mortgage interest rates, according to Stephan Kippes, head of the IVD Market Research Institute. This trend, based on new figures for the residential real estate market in Baden-Württemberg, has resulted in an increase in prices in almost all major cities.
The past ten years have seen a 53% increase in building land for single-family homes and a 50% increase in the condominium segment. This limited housing supply, coupled with strong economic performance and urbanization, has contributed to the significant growth in residential real estate prices.
Major cities like Stuttgart, Mannheim, and Freiburg im Breisgau typically show some of the highest price increases, reflecting strong demand and regional economic attractiveness. For instance, Karlsruhe has the highest increase in rental objects (+31 percent), followed by Pforzheim (+13 percent), Stuttgart (+12 percent), and Ulm (+10 percent).
In the condominium market segment, Recently, Reutlingen had the highest price increase (+2.3 percent) followed by Heidelberg (+1.3 percent). All other major cities have either constant prices or increases of up to one percent. Within the past ten years, purchase prices for condominiums have increased the most in Freiburg (+71 percent) and Karlsruhe (+66 percent).
Despite the tight rental market in major and university cities, the increase in potential buyers is benefiting the rental market as well. In the first quarter of 2025, there is a significant increase (plus 8 percent year-on-year) in the number of apartments available throughout Baden-Württemberg.
For more detailed city-level trends and exact percentage increases, specialized real estate market reports from sources like Germany's Federal Statistical Office, regional real estate associations, or platforms such as Immowelt or ImmobilienScout24 would provide the most accurate insights.
Contact Wolfgang Leja at w.leja@our website or 0711 66601-131 for further information.
[1] As of mid-2025, Baden-Württemberg's inflation rate was about 2.3% year-over-year, which influences general price levels including housing costs.
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