Finance
German home prices halt decline in fourth quarter but outlook uncertain
Published by Global Banking & Finance Review®
Posted on March 25, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 25, 2025
1 min readLast updated: January 24, 2026
German home prices rose 1.9% in Q4, ending a decline since 2022. However, rising borrowing costs create uncertainty for the property sector.
FRANKFURT (Reuters) - German residential property prices rose in the fourth quarter, halting a decline in place since 2022 by gaining 1.9% year-on-year, federal statistics office data showed on Tuesday.
But the outlook for the sector remains uncertain, with a recent increase in borrowing costs clouding prospects.
Home prices began their decline in the third quarter of 2022, after the European Central Bank began a sharp increase in interest rates to curb rampant inflation, sparking Germany's worst real-estate crisis in decades.
The pace of price declines has slowed over the past year, though the outlook for the broader property sector - especially offices - has been muted.
(Reporting by Tom Sims, Editing by Friederike heine)
The article discusses the rise in German home prices in Q4, ending a previous decline, and the uncertain outlook due to increased borrowing costs.
Home prices began declining in Q3 2022 after the ECB raised interest rates to combat inflation, affecting the real estate market.
The outlook remains uncertain due to rising borrowing costs, with the broader property sector, especially offices, showing muted prospects.
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