Real estate prices continue to fall – even in the big cities

Berlin According to estimates by the most important financiers, prices for residential real estate in Germany will continue to fall noticeably. In the first quarter, apartments and houses fell by an average of 2.1 percent compared to the same period last year, according to the real estate price index published on Wednesday by the Association of German Pfandbrief Banks (vdp).

According to the association, which represents the most important real estate financiers in Germany, including Deutsche Bank, Commerzbank, Aareal Bank, Landesbanken and large savings banks, prices fell by 2.0 percent compared to the fourth quarter of 2022.

The figures show that the upheaval in the real estate market is continuing after more than ten years of boom. Both owner-occupied residential property and apartment buildings are affected by the price drop, according to the evaluation available to the German Press Agency.

Including commercial real estate, the real estate price index fell by 3.3 percent compared to the same period of the previous year. The vdp announced that this was the strongest decline since records began in 2003.