By FRANKFURT (Reuters) – German commercial property prices fell 4.7% in the third quarter from a year earlier but showed continued signs of stabilisation, the VDP banking association said on Monday (NASDAQ:MNDY), as the country’s real estate sector grapples with its worst crisis in decades.
Commercial real estate valuations, in decline for two years, rose 0.7% from the second quarter of this year.
It was the second consecutive quarter-on-quarter rise but it is still too early to sound the all-clear, VDP said. Prices may move sideways in the coming quarters, and further setbacks are possible given a weak economy and geopolitical risks.
“It’s still too early to talk about the start of a sustainable upturn in the real estate market,” VDP’s Chief Executive Jens Tolckmitt said.