Continuation of the price correction on the real estate market

In its publication of the vdp real estate price index, the Association of Pfandbrief Banks confirms the continuation of the price correction on the real estate market. The correction is generally more noticeable on the commercial market than on the residential real estate market. Prices for office properties fell by around 5.0% quarter-on-quarter and 7.5% year-on-year, while residential properties only lost 1.8% compared to the previous quarter and 2.1% compared to the previous year. The price correction continues to provide an attractive entry point for investors with strong capital. While purchase prices are falling, rental prices are continuing to rise in many locations. This trend is partly due to the increasing shortage of housing and is being exacerbated by reduced construction activity.