FRANKFURT, Sept 20 (Askume) – German residential property prices continued to fall in the second quarter, with an average annual drop of 2.6%, but also showed some signs of stabilisation, data from the German Federal Statistical Office showed on Friday.
The annual decline has slowed in recent quarters, with prices rising 1.3% in the second quarter compared with the first three months of the year, the first quarter-on-quarter increase since 2022.
The real estate sector in Germany and other parts of Europe has been booming for years, thanks to low interest rates and strong demand.
But a sharp rise in interest rates and costs put an end to development, leaving developers bankrupt as bank financing dried up and deals stalled.
