BERLIN (Reuters) – Prices of residential real estate in Germany fell further in the second quarter, data by the federal statistics office showed on Friday, as high interest rates took toll on the real estate market in Europe’s biggest economy.
Residential property prices fell by 9.9% year-on-year, the strongest decline since the start of the data collection in 2000. Prices fell by 1.5% on the quarter, with smaller yearly declines in sparely-populated areas than in metropolises, the data showed.
In cities such as Berlin, Hamburg and Munich, apartment prices fell by 9.8% and single and two-family house prices dropped by 12.6% on the year.
Data released last month showed a 27% fall in building permits for apartments in Germany in the first half of 2023 as the cost of building rises and the European Central Bank raises interest rates to fight inflation.
(Reporting by Riham Alkousaa, editing by Kirsti Knolle)
