Munich, February 3 – The Bavarian real estate market demonstrated a significant rebound in 2025, with property sales increasing by nine percent to 54.4 billion Euros. This surge follows a period of stagnation after the end of the zero-interest rate policy, which had made it difficult for sellers to find buyers for their properties.
Significant Increase in Property Transactions
According to an estimate by the Immobilienverband Deutschland Süd (IVD), the total value of real estate transactions in Bavaria reached 54.4 billion Euros in 2025. This figure, derived from land transfer tax revenues collected by financial authorities, encompasses both residential and commercial properties. The IVD’s market researcher, Stephan Kippes, stated, “This is not inflation-driven; more activity is taking place again.”
The recovery indicates a renewed ease in finding buyers for properties across the Free State. This positive development follows a challenging period in 2022 and 2023 when the real estate business across Germany experienced a downturn due to the shift from zero-interest rates.
Still Below Record Levels
Despite the substantial increase, the 2025 figures still fall short of the record levels seen in 2021, when property buyers in Bavaria spent a total of 72 billion Euros. However, the nine percent growth in 2025, building on a slight recovery observed in 2024, signals a clear path towards market stabilization and growth.
Focus on Existing Properties, Housing Construction Lags
The revitalization of the real estate market in the past year did not, however, coincide with a corresponding boost in new housing construction. Instead, the majority of transactions involved existing properties changing hands. This trend has been consistently reported by the real estate association, the financial sector, and economic experts.
This suggests that while demand for properties is increasing, the supply of new housing units may not be keeping pace, potentially leading to future challenges in the market dynamics.
Market Dynamics and Economic Impact
The renewed activity in the Bavarian real estate market is a positive indicator for the regional economy. A healthy real estate sector contributes to economic stability and growth, influencing various related industries, including construction, finance, and retail.
The current trend suggests that both private individuals and companies are regaining confidence in real estate investments, signaling a return to more normalized market conditions after a period of uncertainty.
Future Outlook
While the market has shown a strong recovery, experts will be closely watching whether the momentum can be sustained and if new housing construction will eventually catch up with demand. The balance between existing property sales and new developments will be crucial for the long-term health and affordability of the Bavarian real estate market.
The IVD and other economic observers will continue to monitor the market for further developments and provide insights into the evolving landscape of property ownership and investment in Bavaria.
Source: traunsteiner-tagblatt.de
