Germany’s commercial real estate market continued its downward trend in 2024, marking a fourth consecutive year of declining prices as Europe’s largest economy grapples with its worst crisis in decades, Invest-Gate reports.

According to a report released by the Association of German Pfandbrief Banks (VDP) on Monday, commercial property prices fell by 5.4% in 2024, following a steeper decline of 10.2% in 2023, as reported by Reuters.

However, the sector showed signs of recovery in the last quarter of 2024, with prices rising by 0.5%—the first quarterly increase since early 2022. The VDP attributed this stabilization to lower borrowing costs after the European Central Bank eased interest rates.

Despite this modest recovery, the outlook remains uncertain. Jens Tolckmitt, CEO of VDP, cautioned that future price forecasts remain highly uncertain due to ongoing economic weakness and market volatility.