New data released on Friday revealed a continued drop in residential property prices in Germany, marking a significant 10.2% decline in the third quarter compared to the previous year.

This ongoing descent paints a bleak picture for the real estate sector in Europe's largest economy, marking the fourth consecutive quarter of decrease and the most substantial fall since records began in 2000.

Konstantin Kholodilin, from the German Institute for Economic Research (DIW), highlighted, "Until 2022, there was a speculative price bubble in Germany, one of the biggest in the last 50 years. Prices have been falling ever since. The bubble has burst."

For years, the property market in Germany and across Europe flourished due to low interest rates and robust demand. However, a sharp surge in rates and expenses has abruptly halted this growth, causing developers to face insolvency due to drying up bank financing and stagnant deals.

The decline in prices was particularly stark in the third quarter for single- and two-family homes in major German cities, witnessing a 12.7% drop, while apartment prices fell by 9.1%.

Further data released on the same day showed a seasonally adjusted 6.3% decrease in orders for the construction industry in October compared to the preceding month. The German Construction Industry Federation warned of an impending decrease in jobs within the home construction sector.

The recent insolvency filing by Austrian property giant Signa, a significant player in Germany's property market, stands as the most substantial casualty yet in the ongoing property crisis gripping the region.