Signs of Stabilization in German Residential Property Market

German residential property prices fell by an average of 2.6% year-on-year in the second quarter, according to federal statistics office data. However, the decline is slowing, with a 1.3% rise in prices from the previous quarter, marking the first quarter-on-quarter increase since 2022.

German residential property prices fell by an average of 2.6% year-on-year in the second quarter, but data from the federal statistics office on Friday showed some signs of stabilization.

Annual declines have been slowing, and prices grew 1.3% in the second quarter compared to the first three months of the year. This is the first quarter-on-quarter increase since 2022.

The property market in Germany and across Europe had long been buoyant due to low interest rates and high demand. However, the recent sharp rise in rates and costs led to developers facing insolvency as financing from banks dried up and deals became scarce.

(With inputs from agencies.)