Own­ing prop­erty is out of reach for most Ger­mans

Financial Mirror (Cyprus) - - FRONT PAGE -

The latest con­struc­tion fi­nanc­ing sen­ti­ment in­dex re­leased by Comdi­rect Bank found that 58% of those sur­veyed said that prop­erty prices in their re­gion are too high, ac­cord­ing to the Frankurter Al­ge­meine Zeitung. In larger cities, the num­bers were even higher – more than two-thirds com­plained about ex­ces­sively high prices.

The Bun­des­bank has been mon­i­tor­ing prop­erty price de­vel­op­ments with con­cern, the cen­tral said. It takes the view that prices for prop­erty in Ger­many’s largest cities are over­in­flated by be­tween 10-20%.

At the same time, 64% of those sur­veyed by Comdi­rect think that cur­rent con­di­tions mean that now is still a good time to buy a home. Nev­er­the­less, this was 2% less than June’s fig­ure.

An anal­y­sis pub­lished by Stan­dard & Poors shows that house prices across the whole of Ger­many have risen by 20% over the last six years. In the big cities, prices have gone up much more rapidly, equat­ing to 46% since 2009.

Fore­casts re­veal pro­jected in­creases of 5% dur­ing 2015, 4.5% in 2016 and 3.5% in the fol­low­ing year.

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