German residential property prices continue their steep fall, marking the fourth consecutive quarter decline, Invest-Gate reports.

New data has revealed a staggering 10.2% decrease in residential property prices in Germany during the third quarter compared to the previous year, signaling yet another grim outlook for the country’s real estate sector.
Moreover, this marks the fourth consecutive quarter of declines and is the most significant dip since the German statistics office began record-keeping in 2000.

Furthermore, the downturn arrives amidst Germany’s most significant property crisis in decades, impacting the largest economy in Europe.

Constantin Kholodilin from the DIW Economic Research Institute stated, “Until 2022, there was a speculative price bubble in Germany, one of the biggest in the past fifty years… and prices have been falling since then… the bubble burst.”

Also, the real estate sector in Germany and other parts of Europe flourished due to low-interest rates and high demand. However, a sharp rise in interest rates and costs has curbed this momentum, leading developers to bankruptcy amid banking funding shortages and stalled deals.

Notably, the decline affected individual and family homes in major cities during the third quarter, plummeting by 12.7%, while apartment prices fell by 9.1%.