Owning property is out of reach for most Germans
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.