Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

German residential property prices keep falling in Q1

by Uma
0 comment

German residential property prices keep falling in Q1

(Adds missing economist name in paragraph 6)

BERLIN (Reuters) -German residential property prices continued to fall in the first quarter of this year, dropping by an average of 5.7% year-on-year, even after the biggest slump on record in 2023, federal statistics office data showed on Friday.

High financing and construction costs continue to weigh on Europe’s biggest economy, triggering the most severe property crisis in the country in decades.

Last year, home prices fell by 8.4%, the sharpest drop since the beginning of the statistical records in 2000.

According to a poll of 13 real estate analysts conducted by Reuters, prices will continue to fall in 2024 as a whole, with a decrease of 2% likely, bouncing back to 2% growth only in 2025.

Landesbank Baden-Wuerttemberg (LBBW) economist Martin Gueth said he expects the decline in prices to now come to a halt, noting rising demand in home ownership while the housing shortage is still high.

“In particular, households that want to use the property themselves are now increasingly coming back to the market as prospective buyers,” said Gueth.

The expected easing in monetary policy by top central banks around the world this year should also help, he added.

(Reporting by Rene Wagner, writing by Andrey Sychev, editing by Miranda Murray)