Real estate prices in Germany in 4Q23 down 7.2% year-on-year on average, commercial segment sees 12.1% drop

Deutsche Wohnen

Norbolsa| In Germany, the problems in the commercial real estate market are increasing investor fears about the sector and possible lending banks being infected. The collapse in office property prices has accelerated, with Deutsche Pfandbriefbank’s share price at record lows.

In particular, real estate prices in 4Q24 declined by an average of 7.2% year-on-year in Germany, the biggest drop in the entire historical series of the index compiled by the banking association VPD, with a particularly deep slump in the commercial segment.

The situation will remain difficult for the time being in 2024, the organisation warned.

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