Business & Finance
Bundesbank Warns Commercial Property Prices May Decline Again
Key Points
Bundesbank Warns Commercial Property Prices May Decline Again Germany’s central bank warned that commercial real estate prices may decline again if interest rates rise or troubled property funds are forced to sell assets. The “moderately positive” price growth since 2024 shouldn’t be viewed as sign of a broad-based recovery, given that sales have been relatively few in number and focused on high-quality buildings, the Bundesbank said in its annual financial stability report.
Bundesbank Warns Commercial Property Prices May Decline Again
Germany’s central bank warned that commercial real estate prices may decline again if interest rates rise or troubled property funds are forced to sell assets.
The “moderately positive” price growth since 2024 shouldn’t be viewed as sign of a broad-based recovery, given that sales have been relatively few in number and focused on high-quality buildings, the Bundesbank said in its annual financial stability report. Prices for office and retail buildings have declined slightly of late, it added.