German property prices rise 2.2% in first quarter, continuing recovery
Overview of German Property Market Trends in Q1
Quarterly Price Growth
FRANKFURT, May 11 (Reuters) - German property prices rose 2.2% in the first quarter, the VDP banking association said on Monday, but it warned that it remains to be seen how turmoil in the Middle East will weigh on the sector.
Breakdown by Property Type
Residential Property
• Residential property prices rose 2.3% from a year earlier.
Office and Retail Properties
• Office building prices gained 1.9%, and retail property was up 1.5%.
• The increases mark a further recovery after a deep slump.
External Factors Impacting the Market
Influence of Geopolitical Events
• The war in Iran has increased energy prices, inflation and financing costs.
• "It remains to be seen how the war in Iran will affect the real estate market — the first-quarter figures show little sign of it yet," said VDP Chief Executive Jens Tolckmitt.
(Reporting by Tom Sims; editing by Matthias Williams)
