© Reuters. FILE PHOTO: A double decker bus passes the skyline with its dominating banking district in Frankfurt, Germany, November 8, 2023. REUTERS/Kai Pfaffenbach/File Photograph
FRANKFURT (Reuters) – German industrial property costs fell 12.1% within the last three months of 2023 in contrast with a yr earlier of their biggest-ever drop, the VDP banking affiliation mentioned on Monday, because the nation’s struggling property business suffers its worst disaster in a long time.
That makes for a 16.5% fall in costs from their peak within the second quarter of 2022, VDP mentioned.
“A trend reversal is not yet in sight for property prices, despite frequent public speculation. The situation will remain difficult for the time being in 2024,” mentioned VDP’s chief government Jens Tolckmitt.
For years, property in Europe and notably Germany boomed as rates of interest fell, turbocharging demand. However a sudden soar in charges and constructing prices tipped some builders into insolvency as financial institution financing dried up and offers froze.
Germany is up to now Europe’s hardest hit in a rout that has additionally struck China and the US. Jobs are more and more on the road, and the business has referred to as for emergency assist.