German property prices fall at record rate

 

German real estate prices fell a record amount in the second quarter of this year — the sharpest fall since statistics began in 2003. Rising inflation, high interest rates, and a lack of interest from buyers are driving the trend. 

 

The data from the Federal Statistical Office shows that prices fell 9.9 percent year-over-year from April to June. However, this only left prices 1.5 percent cheaper than the first quarter of 2023, with prices still extremely elevated from pre-Covid times. 

 

Cities saw a sharper fall in prices than rural areas, with larger price drops in the top seven cities: Berlin, Munich, Cologne, Hamburg, Stuttgart, Frankfurt am Main and Düsseldorf. The average price of a single-family home fell 12.6 percent compared to the second quarter of 2022, while that for an apartment dropped 9.8 percent. 

 

“The declines were smallest in the sparsely populated rural districts,” said the statistics office. In rural areas, prices fell 7 percent compared to the same quarter last year while single-family homes were 8.1 percent cheaper. 

 

 

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