German commercial property prices experienced their largest decline on record, falling 12.1% in the last quarter of 2023 compared to the previous year, per Reuters. This downturn in the real estate market is attributed to the lingering effects of pandemic lockdowns, which have left business districts struggling to rebound. Capital Economics predicts a further 10% drop in commercial real estate values in 2024, following an 11% decrease in 2023, per YahooFinance. Additionally, according to Fitch Ratings, Germany's economy is operating well below its potential, indicating that a significant recovery may be years away. Similar trends are observed in China, where the average property price continued to decline in January, as per Goldman Sachs analysis of National Bureau of Statistics data.
Pandemic lockdowns emptied out business districts that have yet to fully recover. Now commercial real estate is in trouble, and the crisis may not end there https://t.co/Pslz62Hg1N https://t.co/lrHk4KIhtP
Pandemic lockdowns emptied out business districts that have yet to fully recover. Now commercial real estate is in trouble, and the crisis may not end there https://t.co/ELR6sBu4uq https://t.co/y9QNiOgSXq
Continuing a recent trend, China's data on fx settlement was at odds with the PBOC's balance sheet in January. In theory the difference could be explained by a reduction in the state banks' foreign assets, but those rose. The numbers just don't add up right now 1/ https://t.co/SXsn0zTpAw
🇨🇳 China's average property price fell further in January Goldman Sachs Bottom line: **The National Bureau of Statistics’ 70-city house price data suggests the weighted average property price in the primary market fell sequentially in January after seasonal adjustments.… https://t.co/N6iUgUNmsQ
Germany’s economy is functioning so far below its capacity that a meaningful recovery is likely to take hold in coming years, according to Fitch Ratings https://t.co/lbRgjjtE5k
Pandemic lockdowns emptied out business districts that have yet to fully recover. Now commercial real estate is in trouble, and the crisis may not end there https://t.co/q2R86JGMtb https://t.co/skHASUIQhN
German commercial property prices fell 12.1% in the final three months of 2023 compared with a year earlier in their biggest-ever drop, per Reuters
Capital Economics has said that commercial real estate property values would fall another 10% in 2024 after falling 11% in 2023, per YahooFinance.