Frank­furt prop­erty prices soar­ing

Irish Examiner - - Business -

The prices of new lux­ury flats in Frank­furt have jumped by 25% in the past year, ac­cord­ing to fresh data, fu­elled by mar­ket hopes that thou­sands of Lon­don bankers will move to the city after Brexit. The rise puts the price of an up­mar­ket two-bed­room flat at up to roughly €1m, mak­ing the small city, which has strug­gled with the rep­u­ta­tion of be­ing among Ger­many’s dullest, also one of its most ex­pen­sive. Britain’s plan to leave the EU has caused banks and money man­agers in Lon­don to look at mov­ing parts of their busi­ness else­where to en­able them to sell across the con­ti­nent with­out ad­di­tional costs or trade hur­dles after Brexit. The rise in prop­erty prices in Frank­furt, shown in city data com­par­ing the price of newly built apart­ments in the first six months of 2017 with a year ear­lier, comes as the city pre­pares to build 20 new sky­scrapers within five years to pro­vide of­fices and apart­ments. The price spi­ral is con­cen­trated on new lux­ury apart­ments, while other prop­er­ties in less fash­ion­able lo­ca­tions re­main af­ford­able. Dublin has also seen house prices jump, by more than 11% in the first half of this year. House prices in Lon­don dur­ing that time rose by less than 3%. A re­cent study com­mis­sioned by Frank­furt’s chief pro­moter pre­dicted that there would be 10,000 new bankers in the city within four years and that their ar­rival could cre­ate tens of thou­sands of ad­di­tional jobs, from es­tate agents to build­ing work­ers.

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