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German fears push house prices up

Posted on 19 June 2012

Fear in Germany is pushing house prices higher. German private consumer spending rose by 1.5 per cent in 2011, but while some of that is simply on wine and food and other everyday expenditure, a significant proportion is on housing. Why? Because people are scared of inflation and worried about the eurozone financial climate.
With buyers looking for real estate in a safe haven with strong rental yields, Germany’s market has seen prices rise significantly in recent years: values jumped by 2.5 per cent in 2010 and 5.5 per cent in 2011. In Berlin and Munich, according to Money Week, apartment prices rose by as much as 10 per cent………………………………………..Full Article: Source


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