The age of cheap loans has well and truly dawned. Germany in particular is witnessing a building boom with Berlin at the epicentre. Experts predict an ongoing real estate boom, with some already warning about a bubble.
Report by Christian Pricelius
A combination of low interest rates and banks hunting for yields could fuel a dangerous real estate bubble, a senior member of the German central bank has warned, urging banks and financial supervisors to be alert.
In Berlin big real estate investment companies are facing ever more backlash from locals who fear higher rents or being pushed out of the city center. Is there still a future for grand real estate speculation?
Looking to buy property in Germany? A proposed cut to the real estate acquisition tax could make it even cheaper. But DW's Jefferson Chase, himself a property owner, says that such a cut could be a double-edged sword.
The Bundesbank has singled out seven cities where property prices were particularly overvalued. Investors have turned to real estate as consistently low interest rates negate any benefits from saving.
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