German house prices fall in Q2 but show some stabilization By Reuters

FRANKFURT (Reuters) – Residential property prices in Germany continued to fall in the second quarter, falling an average of 2.6 percent year-on-year, but showed some signs of stabilising, data from the federal statistics office showed on Friday.

Annual declines have slowed in recent quarters, and prices rose 1.3 percent in the second quarter from the first three months of the year, the first quarterly increase since 2022.

For years, the real estate sector in Germany and elsewhere in Europe has been booming as interest rates have been low and demand strong.

But a sharp rise in rates and costs has ended the run, pushing developers into insolvency as bank financing dries up and deals freeze.