Commercial property prices in Germany saw their largest annual decline ever in the fourth quarter of 2023, as the struggling real estate sector in Europe’s largest economy grapples with its worst crisis in decades, Invest-Gate reports.

In a statement released Monday, the banking association FVB said commercial property prices in Germany fell by 12.1% year-on-year in the fourth quarter of 2023.

The statement noted that the association’s data showed a 16.5% decrease in German commercial property prices compared to their peak in the second quarter of 2022.

Jens Tolkemit, CEO of FVB, stated that there’s no sign of a turnaround in commercial property prices yet despite repeated general expectations, and the situation is expected to remain challenging throughout 2024.