Increasing real estate prices for apartments and houses in Germany. Magdeburg, 28.11.2013. Especially in the big cities it is becoming increasingly difficult to find an affordable home. According to the Bundesbank real estate prices in Germany’s cities have grown so sharply, that the living room is overpriced considered perfect. Could “currently overvaluations between five and ten per cent there.” In major cities such as Hamburg, Frankfurt am Main, Munich and Cologne real estate prices were up to 20 percent above the level that can be explained with economic factors. Real estate expert Thomas Filor confirmed in a German city a cheap apartment to find is now winning a Salerno in the lottery,”.
Currently there a significant price gap between cities and more rural regions in Germany.” In the monthly report of the Central Bank, they say a nationwide overpricing in the market for residential real estate in Germany is “not while still to recognize”. However, there have been price increases for homes in recent years in urban areas, the are “fundamentally difficult to justify allow”. Residential real estate have risen since 2010 to an average of 8.25 percent. In larger cities, the prices for apartments even by more than a quarter have gone. Background of the price increase in real estate is that apartments and houses in Germany massively won in recent years on appeal as a financial investment, it was said in the monthly report of the Central Bank. After the bursting of housing bubbles in the United States or Spain, foreign investors would have discovered the German housing market for themselves. The opinion have prevailed also among private investors in the past few years increasingly, that asset secure leave best with real estate property. Although the golden era, in which a return of 20 percent and more than guaranteed was gone, but the earnings prospects are still very high, especially considering low interest rates.
Again invigorated interest in Germany’s real estate market for one due to the lack of range of other markets. In addition, the German economy is very stable, which also attracts buyers,”emphasizes Thomas Filor. Despite the developments, the Bundesbank spoke out against so-called rent brake, as repeatedly discussed in the past months by politicians. It only more new apartment buildings would be built if investors look permanently “enough return potential” in the rental of living space, the Bundesbank warned.