House prices fall for the first time since 2010

Berlin According to Pfandbrief banks, prices for residential real estate in Germany have fallen slightly for the first time since 2010. In the third quarter, apartments and houses fell by 0.7 percent compared to the previous quarter, according to the real estate price index published by the Association of Pfandbrief Banks (vdp) on Thursday. The more than twelve-year upward trend in residential real estate is over, said vdp general manager Jens Tolckmitt.

While owner-occupied residential property has become slightly more expensive, the prices for apartment buildings have fallen by almost two percent. The index of the association, in which the most important German real estate financiers are united, is based on transaction data from more than 700 banks.

In the seven largest metropolises, residential real estate fell in step with the overall market by 0.7 percent. While prices in Berlin remained stable compared to the second quarter (minus 0.1 percent), they fell in the other major cities by between 0.6 percent (Cologne) and 1.5 percent (Munich).