Germany commercial property saw a fall of over 1%Why did commercial property prices fall? Residential property holds upCommercial real estate prices in Germany fell in the second quarter, breaking a five-quarter run of gains as renewed inflation fears, higher interest rates and geopolitical tensions put pressure on a property market still recovering from a deep downturn, banking association VDP said on Monday.The decline marks a setback for Germany's commercial property market, which had been showing tentative signs of recovery after several years of steep price falls following the war in Ukraine. "The commercial real estate market is reacting more strongly than the residential real estate market to geopolitical developments, rising inflation expectations, and interest rate trends," said Jens Tolckmitt, CEO of VDP.The findings mirror a July survey showing that sentiment among those financing commercial real estate in Germany deteriorated sharply during the quarter. "The future development of the commercial real estate markets depends, among other things, on whether and when the numerous geopolitical conflicts will be resolved," Tolckmitt said.Residential property prices continued to rise, although growth slowed. Home prices increased 1.9 per cent year-on-year in the second quarter, compared with a 2.3 per cent rise in the first quarter.