German commercial property prices drop but show some stabilisation
3:35 am Monday, November 11th, 2024
FRANKFURT (Reuters) – German commercial property prices fell 4.7% in the third quarter from a year earlier but showed continued signs of stabilisation, the VDP banking association said on Monday, as the country’s real estate sector grapples with its worst crisis in decades.
Commercial real estate valuations, in decline for two years, rose 0.7% from the second quarter of this year.
It was the second consecutive quarter-on-quarter rise but it is still too early to sound the all-clear, VDP said. Prices may move sideways in the coming quarters, and further setbacks are possible given a weak economy and geopolitical risks.
“It’s still too early to talk about the start of a sustainable upturn in the real estate market,” VDP’s Chief Executive Jens Tolckmitt said.
(Reporting by Tom Sims, Editing by Friederike Heine)
