Prices for apartments and houses in Germany increased by 1.9% year-on-year in the 4th quarter of 2024, preliminary data from the Federal Statistical Office showed. Thus, the decline cycle that began in 2022 has been stopped.
The outlook for the sector, however, remains uncertain as the recent increase in borrowing costs clouds the outlook.
Housing prices in Germany began to decline in 2022 after the European Central Bank began rapidly raising the base rate in an attempt to contain inflation. This triggered the most serious crisis in the country's real estate market in recent decades.In 2024, the rate of price decline slowed down, but the situation in some real estate sectors, especially in the office sector, continued to deteriorate.
Source: Reuters
