5 min read
08.08.2025

Mid-Year Review 2025

How the real estate market in Schleswig-Holstein is evolving – and what to expect next

A striped lighthouse stands amidst sandy dunes and tall grasses under a clear blue sky.

At the start of the year, we published a cautious yet optimistic outlook for 2025. After a turbulent 2023 and early signs of stabilization in late 2024, we anticipated a gradual recovery of the market.

Now, halfway through the year, it’s time to assess: What has materialized? Where were we accurate – and where did the market surprise us?

Table of Content

Our Figures for the First Half of 2025
Outlook for the Second Half of 2025
Our Takeaway

Our Figures for the First Half of 2025

The past six months have made one thing clear:
Buyer demand is returning – selectively, but significantly.

Properties sold: 351
Transaction volume: €110 million
Ø Time on market: 12 weeks
Ø House price in Schleswig-Holstein: €3,404/m²
→ +8.09% year-on-year
→ +0.75% compared to previous quarter

(Source: Listing prices from property portals, as of July 2025)

This puts current pricing well above 2024 levels (€3,149/m²) – a clear sign that the bottom of the market has been reached.

Where Our Forecast Was Accurate

Market stabilization: As anticipated, prices have leveled off. In prime coastal regions such as the Lübeck Bay, the North Sea coast, and the greater Kiel area, we’re seeing renewed activity.

Buyers return: Following the ECB’s interest rate adjustment in spring 2025, financing conditions improved noticeably – directly impacting buying behavior.

Location is king: Holiday homes and second residences in strong micro-locations with good energy ratings continue to be in demand – both for private use and investment.

Where the Market Surprised Us

Speed of recovery: While we expected gradual stabilization, some areas – especially premium leisure properties – have bounced back faster than anticipated.

Investor confidence: Despite global uncertainties and inflation, many buyers are turning to real assets. Real estate remains a safe haven in uncertain times.

Outlook for the Second Half of 2025

Looking ahead, we expect current trends to continue:

Buyer demand will likely keep rising – but selectively.
Well-positioned properties will continue to sell quickly.
Prices should remain stable, with slight increases in top locations.
Rental demand remains high – making investment properties even more attractive.

Our Takeaway

The recovery of Schleswig-Holstein’s real estate market is clearly underway – earlier and more decisively than expected. Strategic buyers in 2025 can benefit from stable prices, rising demand in key segments, and a broadly positive market sentiment.

Curious about your property’s current value or investment opportunities in Northern Germany? We’re here to offer strategic advice tailored to your goals.