Frankfurt property prices soaring
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.