Dear all,
I hope those from Europe (especially Germany) are not seriously affected by this.
Regards
James
1/13/2024
Residential property prices in Germany continued their decline, registering a 10.2% drop in the third quarter compared to the previous year, marking the fourth consecutive quarter of declines. This decline is the most significant since Germany began recording such data in the year 2000, highlighting the severe challenges faced by the real estate sector in the country, currently undergoing its most substantial property crisis in decades.
The property sector had experienced a boom in Germany and across Europe due to low-interest rates and robust demand. However, the scenario changed with a significant increase in rates and costs, leading to a cessation of the boom, causing developers to face insolvency as financing options dwindle and transactions come to a halt.
The third quarter witnessed a particularly pronounced decline in the prices of single- and two-family homes in major German cities, with a 12.7% decrease, while apartment prices fell by 9.1%. Additional data revealed a 6.3% seasonally adjusted drop in orders for the construction industry in October compared to the previous month.
