As the Association of German Pfandbrief Banks (vdp) reports, in the 1st quarter they were on average 1.5% below those of the same period in the previous year, which was still largely unaffected by the corona crisis. The transaction prices for office properties fell by 1.2%, during the same period office rents fell by 0.9%, and property interest rates rose by 0.3%. At 2.1%, the decline in retail property prices, which had started well before the pandemic, was more pronounced, but was at the level of the two previous quarters. The index of new leases fell here by 0.7%, while interest rates rose by 1.4%. For residential property, however, the price rally continues: The vdp index for this segment rose by 8.4% compared with the beginning of 2020, and by 5.3% in the top 7 cities. Apartment buildings in these cities rose by 4.8%.

Source: Thomas Daily