Germany's commercial property market has shown signs of stabilisation following a 5.4 per cent price drop in 2024. According to the VDP banking association, this marks the fourth consecutive year of declines in the sector.
Despite the ongoing decline, the rate of decrease in 2024 was less severe compared to the 10.2 per cent fall experienced in 2023. The real estate sector in Germany is currently grappling with its most severe crisis in decades.
A glimmer of hope emerged in the fourth quarter of the previous year when prices saw a 0.5 per cent increase. This was the first quarterly increase since the first half of 2022, indicating a potential turnaround in the market. The German real estate sector continues to strive towards recovery amidst challenging conditions.
