House prices in Germany declined in the second quarter at the fastest pace since 2000, adding further evidence to the adverse impact of rising interest rates on the real estate market in the biggest euro area economy.
Prices of residential property decreased by an average 9.9 percent year-on-year, the statistical office Destatis said Friday. This was the biggest annual fall since the start of the time series in 2000.
In the same quarter last year, the house price index hit a record high. But they have been falling quarter-on-quarter since then, the statistical office observed.
In the second quarter, house prices fell 1.5 percent from the previous three months after a 2.9 percent slump in the first quarter. In the fourth quarter of 2022, prices had declined 5.1 percent.
Official data released earlier this month showed that apartment permits granted during January to July were 27.8 percent lower than in the same period last year.
Separate survey data suggest the crisis in the German residential construction sector has intensified in recent months.
by Jyotsna V
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