Significantly increasing prices in the German real estate market allow the presumption, this could evolve on the need for passing. Admonisher”talk of bubbles”, so overheated prices. The experts of S & K are sharp disagreement with Group of companies. You mean that the German real estate market slowly adapts to the reality. In Hamburg, Munich or Berlin: in about five years, buyers of condos value increases by up to 30 percent were able to achieve here. Also in the Office and commercial real estate, real estate experts determine partially significant increases.
This increase in demand also applies to closed-end real estate funds. They could claim not only their dominant position among the closed-end funds again in the last year, they will also benefit from an increased demand”, so the assessment by Dr. Jonas Koller, CEO of S & K group of companies. Can one speak therefore about a price bubble? A bubble forms when a market is overbought, so the demand is significantly greater than that Offer. This statement does not apply to lump-sum so for the German real estate market.
The real estate market is only slightly tighter in some locations, resulting in the price increases. But that’s a very natural process”, so the real estate expert Dr. Koller by S & K group of companies. The recent study by DB shows that the German real estate market in relation to the European environment is still a cheap prices, research. So the level in Germany was only until 2006 even decline, 2007 followed by a modest rise. According to the European Central Bank, the indicators of residential real estate prices show still an average undervalued by about 10 percent in Germany. Experts estimate the level at commercial real estate and Office – not quite so high, but also a pent-up demand is undeniable. While the development in Germany is not uniform, but aimed at the different locations. “There is the statement, that the real estate market for years split” is and based in particular on the employment opportunities. There are big differences, where not only the Metro pole locations such as Frankfurt, Munich, Dusseldorf and Hamburg are in demand, but also their indirect environment.