German Commercial Property Prices

FRANKFURT (Reuters) – German commercial property prices fell 4.7% in the third quarter from a year earlier but showed continued signs of stabilisation, according to the VDP banking association on Monday (NASDAQ:MNDY). The country's real estate sector is grappling with its worst crisis in decades.

Commercial real estate valuations, which have been declining for two years, increased 0.7% from the second quarter of this year. This marks the second consecutive quarter-on-quarter rise, yet it is still deemed too early to declare a recovery.

VDP mentioned that prices may remain stable in the coming quarters and further setbacks are likely due to a weak economy and geopolitical risks.

VDP's Chief Executive, Jens Tolckmitt, cautioned, "It's still too early to talk about the start of a sustainable upturn in the real estate market."