German commercial property prices start year with gains

FRANKFURT (Reuters) -German commercial property prices rose 2.3% in the first quarter, the VDP banking association said on Monday, marking a second consecutive quarter of modest gains after years of declines.

The increase was bigger than the 0.5% gain in the fourth quarter of last year, which was the first quarterly increase since the first half of 2022 as the country's real estate sector grappled with its worst crisis in decades.

"The price trend at the start of the year is positive, but should not be overrated," said VDP Chief Executive Jens Tolckmitt.

(Reporting by Tom Sims, Editing by Friederike Heine)