Commercial real estate prices in Germany fell by 4.7% in the 3rd quarter of 2024 compared to the same quarter last year, as the country's real estate sector is experiencing the most serious crisis in recent decades.
At the same time, quarterly figures indicate a gradual recovery. The cost of commercial real estate, which has been declining for two years, increased by 0.7% compared to the 2nd quarter of this year, the VDP banking association reported.
Quarterly growth was recorded for the second time in a row, but it is too early to talk about full stabilization, VDP believes. Prices may fluctuate in the coming quarters, and further declines are possible, given the weak economy and geopolitical risks.
"It's too early to talk about the beginning of a sustained recovery in the real estate market," said VDP CEO Jens Tolkmitt.
Source: Reuters
