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

Real estate prices in Germany are not too high. This is what a new study by Deutsche Bank, whose analysts have analyzed the European housing market, says.

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.

Hauspreise in Deutschland steigen

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. ”

Housing prices have doubled in Belgium and Austria

The title is currently under our little neighbor Belgium – before our slightly larger neighbor Austria. In both countries, house prices have roughly doubled since the turn of the millennium. In Belgium, they are today compared to the income of citizens at 140 percent of the historical average, in Austria at 125 percent.

In France , Spain and the Netherlands the price level has also increased. The three countries, however, are still just behind Austria – and are therefore questionable expensive regions.

Other countries, on the other hand, have reduced their previously gross overvalues ​​in recent years: Ireland has even fallen below its historical average from a level of 160 percent, including in Greece and Italy prices fell significantly in terms of income.

The problem of high property prices sees the European Central Bank by the way not in a shortage of apartments. Mostly, apartment seekers still find a home. However, the increased purchase prices are causing more and more Europeans have to go into debt. In the Netherlands, private households are responsible for around 110 percent of GDP, in Finland it is 70 percent. In both countries, private debt has doubled since 2001.