Germany’s property market transactions reach €23.4b in ’24

Transactions in Germany’s property market rose modestly in the first nine months of 2024, according to data released by JLL on Monday.

The turnover of investment properties reached €23.4 billion ($25.66 billion), reflecting a 5 per cent increase from the previous year. This uptick signals a potential bottoming out after a two-year decline during the nation’s most severe real estate crisis in decades.

JLL attributed the stabilisation in the market to central bank rate cuts in both Europe and the United States. However, Helge Scheunemann, head of research at JLL in Germany, cautioned that the recovery would be slow, stating, “This will not lead to a sudden firework display of sales,” and emphasising the need for a cautious and moderate upturn without unrealistic expectations.

Germany has been particularly affected by the recent real estate downturn, which has also impacted markets in China and the United States. For years, the property sector in Germany thrived as interest rates fell, but a rapid increase in rates and rising building costs have driven some developers to insolvency, leading to a freeze in financing and deals.

Attribution: Reuters

Subediting: M. S. Salama