Back
21 Oct 2013
Bundesbank: Residential property in German cities increasingly overpriced
FXstreet.com (Barcelona) - The German Bundesbank released a report on Monday in which it warned against the quickening pace of the rise in house prices in largest German cities, such as Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart or Düsseldorf.
“Price increases have so far concentrated in large cities,” the report states. “Measured by longer-term demographic and economic influence factors, overvaluations could be between 5 and 10 percent. In the attractive large cities, the deviations are up to 20 percent.”
The Bundesbank explained that the rise in house prices results from increasing investment in residential property markets. It assured however that the growth in prices shouldn't pose significants risks to the economy.
Moreover, the Bundesbank signalized that the pace of economic recovery in Germany had probably slowed down in Q3, compared with Q2. The summer quarter likely saw stronger growth partly owing to a rise in economic output.
“Price increases have so far concentrated in large cities,” the report states. “Measured by longer-term demographic and economic influence factors, overvaluations could be between 5 and 10 percent. In the attractive large cities, the deviations are up to 20 percent.”
The Bundesbank explained that the rise in house prices results from increasing investment in residential property markets. It assured however that the growth in prices shouldn't pose significants risks to the economy.
Moreover, the Bundesbank signalized that the pace of economic recovery in Germany had probably slowed down in Q3, compared with Q2. The summer quarter likely saw stronger growth partly owing to a rise in economic output.
Debt Crisis Timeline
Follow the chronology of events that affected currency markets since the onset of the financial crisis. TimelineJS was created and built by VéritéCo and the Knight News Innovation Lab