RE: German...22 Dec 2023 08:36
The drop comes amid the biggest property crisis in decades in Germany, Europe's largest economy.
"Until 2022, there was a speculative price bubble in Germany, one of the biggest in the last 50 years," said Konstantin Kholodilin from the macroeconomics department of the German Institute for Economic Research (DIW).
"Prices have been falling ever since. The bubble has burst."
For years, the property sector in Germany and elsewhere in Europe boomed as interest rates were low and demand strong.
But a sharp rise in rates and costs has put an end to the run, tipping developers into insolvency as bank financing dries up and deals freeze.
DYOR