Commercial property prices in Germany declined in the second quarter, halting a streak of five consecutive quarters of growth. This drop was largely driven by mounting inflation worries and increasing interest rates. While office and retail spaces saw a year-on-year decrease of one percent, residential properties continued their gradual appreciation. The market’s outlook will be determined by the resolution of ongoing geopolitical disputes. Commercial property prices in Germany declined in the second quarter, halting a streak of five consecutive quarters of growth. This drop was largely driven by mounting inflation worries and increasing interest rates. While office and retail spaces saw a year-on-year decrease of one percent, residential properties continued their gradual appreciation. The market’s outlook will be determined by the resolution of ongoing geopolitical disputes.
