House prices build across Germany
Many housing markets across Europe have been badly hit by the current Euro crisis but the stable economy in the country has helped the German property market to prosper in recent months.
Last year residential property prices across the country rose by more than 5 per cent and in some of the larger cities house prices appreciated by up to ten per cent boosted no doubt by the amount of international property investors attracted by the country’s stable economy.
Several German property experts have expressed concern that the upward direction of residential real estate prices may lead to a boom and bust scenario that took place in the country twenty years ago. But economists claim that there is a world of difference between today’s market and that of the early 1990’s when demand was high due to tax incentives.
Banking regulations today are more stringent following the global cash crisis and investors are keen for long term growth potential rather than the get rich quick schemes of yesteryear.