According to the vdp (Association of German Pfandbrief Banks)the prices for German residential and commercial properties continued to rise in 2015. The vdp property price index rose in comparison to the prior-year by 5% marking another peak.
Residential: + 5.0%
Multi-family: + 6.8%
Retail: + 2.9%
Since the economic and financial crisis investors and private house builders continued to invest in the German property market as properties are seen as a stable investment. Due to low interest rates demand for residential and commercial properties push on.
Foreign investors as well as nationals continue to be interested in German real estate. If this demand stays on prices will continue to rise. It’s true that there is an “overvaluation” in some cities but banks see no nationwide bubble here.
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