Data published by the Federal Statistical Office (Destatis) showed that in the 2nd quarter the prices of residential property fell by an average of 2.6% per annum. It was the 7th decline in a row. However, the rate of decline slowed sharply compared to the 1st quarter (-5.1%). Meanwhile, compared to the 2nd quarter of 2023, residential property prices rose by 1.3%, recording the first increase since the 2nd quarter of 2022.
Compared to the 2nd quarter of 2023, prices were still declining in most areas of Germany. Compared to the 1st quarter of 2024, a decrease in prices was observed only for apartments in sparsely populated rural regions. On the other hand, prices for single- and two-family houses increased on average in all types of regions compared to the previous quarter. High financing and construction costs continue to negatively affect Europe's largest economy, triggering the most severe property crisis in the country in decades.
Prices in the seven largest cities in Germany (Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf) increased by 1.6% (apartments) and 2.3% (one- and two-family houses) compared to the previous quarter. Compared to the same quarter of the previous year, apartments in these metropolises were 1.5% cheaper, houses cost 4% less.