Data published by the VDP banking association showed that in the 3rd quarter, the real estate price index decreased by 1.0% per annum, but increased by 0.3% in quarterly terms.
VDP stated that residential real estate prices fell in the 3rd quarter by 0.2% per annum and rose by 1.1% compared to the 2nd quarter of 2024. The data also showed that the trend for commercial property prices, which is to say office and retail property prices, again proved to be quite significant, with prices 4.7% lower than in the third quarter of 2023. However, commercial properties experienced an overall increase of 0.7% in quarterly terms.
"Real estate prices have been rising for the second quarter in a row (in quarterly terms). Recent property price developments in Germany are a positive signal, given the rather challenging geopolitical and macroeconomical environment, both nationally and internationally. But it is still too early to speak of the start of a lasting property market upturn. Only the development of the index over the coming quarters will shed light on how robust the current market stabilization actually is," said VDP Chief Executive Jens Tolckmitt. He warned that, particularly for commercial properties, the current development is as yet no more than a first indication of an end to the two-year decline in prices and the entry into a possible sideways movement.