German property prices up in Q3 ’24

Germany’s property market saw slight price increases in the third quarter of 2024, with the Association of German Pfandbrief Banks (vdp) property price index rising 1.0 per cent quarter-over-quarter to 177.3 points, though prices were still down 1.0 per cent from the previous year.

Growth in residential property, especially multifamily housing, was a key factor, with prices up 1.1 per cent over the prior quarter but down 0.2 per cent year-over-year. Commercial property prices, although experiencing a 4.7 per cent annual decline, also rose 0.7 per cent from Q2, led by office properties.

Rising rents reflect persistent housing shortages, as rents on new contracts for multi-family houses jumped 5.6 per cent over the year. Major cities showed similar trends, with rent increases across Germany’s top seven cities, including a notable 5.4 per cent rise in Berlin.

Jens Tolckmitt, VDP’s CEO, remarked that while property prices show signs of stabilisation, economic uncertainties and geopolitical risks still pose potential setbacks. Despite these risks, Tolckmitt expressed cautious optimism, suggesting that 2025 may see more robust growth in Germany’s property market.

Attribution: the Association of German Pfandbrief Banks (vdp)

Subediting: M. S. Salama