Real estate sales in germany have doubled

real estate sales in germany have doubled

In germany, twice as much money is now invested in real estate than ten years ago. According to initial projections by official experts, last year’s figure was 260 to 270 billion euros, around 10 to 15 billion euros more than in the previous year.

"There are no indications of a trend reversal," peter ache, the head of the working group of the appraisal committees, told the deutsche presse-agentur. It is also not impossible that real estate sales will exceed 300 billion euros in 2018.

"Interest rates are still low, migration to the cities is almost unchanged," ache described causes for the unusually long boom. In addition, building land remains scarce in the cities. Although slightly more building plots were sold in 2018, he says. "Whether this slight auart trend will be enough, however, to raise the required around 380.It remains to be seen how many new housing units will be built."

In 2009, germans still spent around 130 billion euros on houses, apartments and land. Since then, the curve has been pointing upwards. As in previous years, about one million objects were allowed to change hands in 2018, estimates ache.

Prices are rising, especially in the cities. "But it’s also printing more and more into the city’s surrounding area," said the expert. Demand is growing in the bacon belts. Depending on how good the rail connection is, house and apartment buyers used to accept long commutes, for example from luneburg to hamburg, 50 kilometers away.

The expert warned against buying an apartment lightly in view of the ongoing boom. "One must not neglect the uncertainty of real estate prices in the long term comparison."Over the decades, the value can fluctuate greatly.

The working group collects the reports of the municipal appraisal committees. He includes data from all sales contracts – unlike other market studies that are based on advertisements. The working group will present its next nationwide report at the end of this year.

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