(Bloomberg) -- Germany’s residential real estate market continues to struggle even as prices show signs of stabilizing, according to the latest data from the Kiel Institute for economic research.

Valuations for apartments slipped 0.7% from January to March, compared with the previous quarter, while prices for single-family homes were flat, data on Tuesday showed. Prices for multi-family homes slid 10.5% in the first three months of 2024, more than twice the pace of decline compared to the prior quarter.

“It is still too early to call a bottom,” Kiel Institute President Moritz Schularick said in a statement. A persistently low number of transactions means that “markets are quite volatile” on a regional basis, he said. The situation in the country’s largest cities, by contrast, is “calming down.” 

Read more: Germany Property Slump Drags Investment Deals Down 19%

The average number of real estate sales across all residential segments in the first quarter was only about 40% of the average level from 2019 to 2021, the data showed.

The rise in interest rates has seen property prices fall sharply from their peak in 2022. Investor appetite for large German real estate deals remained muted at the start of the year, even with interest rates cuts expected on the horizon.

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