By Helena Smolak
Prices in Germany's real-estate market continued to fall in the third quarter, extending a stretch of declines it experienced over the past year, new data showed Friday.
Average German residential and commercial property prices fell by 7.1% in the third quarter compared with a year before, according to data from the Association of German Pfandbrief Banks, or VDP. The so-called Pfandbriefe are bonds covered by mortgages, commercial loans and public-sector debt and are issued by credit institutions.
On a quarter-on-quarter basis, German property prices fell 1.7% on average, the association said.
The association's real-estate price index currently stands at 179.2 points and has fallen by 8.0% since it peaked in the second quarter of 2022, the VDP said.
The third quarter of 2023 saw a continuation of the price trend from the first half of the year. However, the price correction is taking place to a much lesser extent in residential real estate than in commercial real estate, it said.
Commercial property prices fell 10.3% on an annual basis in the third quarter, while average residential property prices were 6.3% lower than a year before, according to the association's data.
"The price correction still applies to all asset classes. A market recovery has yet to materialize," said VDP Managing Director Jens Tolckmitt.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
11-10-23 0959ET
