German property market 2nd quarter 2017: Price trend continues on upward path
- vdp property price index: + 5.9 percent
- Residential property prices: + 6.0 percent
- Commercial property prices: + 5.5 percent
Price growth on the German real estate market remained dynamic in the second quarter of 2017, too. Calculated on the basis of real transaction data, the vdp property price index was 5.9 percent up on the corresponding quarter one year earlier (Q2.2016: + 6.7 percent). Residential property prices advanced by 6.0 percent (Q2.2016: + 6.9 percent) and prices for commercial properties rose by 5.5 percent (Q2.2016: + 5.8 percent).
“The main drivers of this upsurge in prices were the markets for multi-family houses and office premises,” said Jens Tolckmitt, Chief Executive Officer of the Association of German Pfandbrief Banks (vdp). “Both asset classes were still high in demand among investors of late. Against the background of historically low interest rates and European and global political uncertainties, an investment in real estate remains an attractive option for German and international investors. In this context, Germany is still considered to be a safe haven. This apparently justifies for many investors the high property price level. A trend reversal is therefore not to be expected for the time being.”
For details on how the individual market segments developed, and for all index data on the individual vdp property price indices (2003-2017) including charts and tables, please refer to the attached publication.