Real Estate
Germany’s Office Property Slump Accelerates With Record Drop
- Prices for office buildings tumbled 13% in the fourth quarter
- Germany’s Lindner sees commercial real estate in ‘adjustment’
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Germany’s market for office buildings suffered its sharpest drop in two decades as higher financing costs and sluggish return-to-office trends soured investor appetite.
The downturn accelerated in the fourth quarter with a 13% drop from the previous year, according to data published Monday by German banking association VDP. For the full year, prices slumped more than 10%, the most since records began in 2003, and the outlook is for further declines at the start of 2024.