German home prices rose by 3.2% in the second quarter, extending their recovery for a third straight period. The increase suggests that the country’s fragile property market is slowly stabilizing after a deep recession.
However, the gain was slightly weaker than the 3.5% rise seen in the first quarter. That earlier figure was also revised down from an initial estimate of 3.8%.
Despite the recent upward trend, these gains only partly offset the steep price declines recorded over the past two years. Surging inflation and sharply higher interest rates ended Germany’s decade-long housing boom, leaving the market struggling to regain balance.
