Data published by the Federal Statistical Office (Destatis) showed that the prices of residential property fell by 8.4% per annum in 2023. This was the largest decline since the beginning of the time series in 2000 and the first decline since 2007. Residential property prices rose steadily on an annual average basis in the period from 2008 to 2022. The data is another grim sign for Germany's real estate sector, which is facing its biggest crisis in decades. For many years, the German real estate sector has been booming amid low interest rates and high demand.
Destatis also said that in the 4th quarter of 2023, the prices of residential property fell by 7.4% per annum (the fifth decline in a row) and by 2% compared to the 3rd quarter of 2023. Compared with the same quarter of the previous year, the prices of existing buildings registered a steeper decline (-7.8%) than the prices of new buildings (-3.2%). Quarter on quarter, the prices of existing buildings were down 2.1% and new buildings cost 1.0% less.