Price increase “unavoidable”: German real estate is much more expensive
House prices in Germany have risen by half since 2009. So far no problem, says Deutsche Bank in a new study. But prices continue to climb. Soon real estate will be so overpriced with us as nowhere else in the Eurozone.
- Deutsche Bank analyzes the European housing market
- Home ownership is becoming more affordable again in most countries
- Only Germany shows questionable trend
For this, the experts compared the average prices with the average income. The historical relationship between these two parameters applies to them as a “fair valuation” of real estate. For Germany, the value is currently approaching this average – although prices in this country since 2009 have risen by more than 50 percent. The reason: income has also increased.
The trend speaks against Germany
Thus, the price increases, says the study, only blatant undervalues from the previous decade time compensated. For example, at the beginning of the financial crisis, real estate prices had slipped so far that they accounted for just over 70 percent of the historical average.
However is the trend against us – and clearly. Because the strong price increase of the past eight years will continue unabated according to German bank. The study makes a gross mismatch between supply and demand.
So little has been built in Germany for years, as well as a study of the Pestel Institute from Hannover of November 2016 occupied. At the same time, more and more people in Germany need an apartment.
That’s because that
1. About 1.8 million people since 2012 net more moved to Germany and
2. around 800,000 additional students flock to the big cities and need housing there.
About one million apartments will be missing in Germany by 2020, says the Deutsche Bank. Their conclusion: “Overvaluations (ie price increases, ie red.) Seem unavoidable given the shortage of housing and some misguided housing policy interventions.”
Because neither the influx from abroad, nor the inflow of capital assets to Germany in the coming years are likely to slow down, the situation will be aggravated, the real estate experts warn: “Therefore, we expect that Germany at the end of the decade the highest false valuations within the Eurozone. ”