The sharpest decline in house prices in Germany has been seen since 2000.
The German Federal Statistical Office (Destatis) announced the second quarter data of 2023 on house prices.
Accordingly, house prices in Germany decreased by 9.9 percent in the April-June period compared to the same period of 2022. Thus, it recorded the sharpest decline since 2000, when data on house prices began to be collected.
In the cities of Berlin, Hamburg, Munich, Cologne, Frankfurt Stuttgart and Düsseldorf, apartment prices fell by 9.8 percent, and house prices with gardens fell by 12.6 percent.
Meanwhile, the European Central Bank (ECB) is struggling with rising interest rates against high inflation. This situation slows down the economy by making investments in construction and other sectors more expensive.
In Germany, there was a 27 percent decrease in apartment construction permits in the first half of 2023 due to the increase in both construction costs and interest rates.