Federal statistical office of Germany: real estate prices are on the rise in spite of the Corona-crisis

Federal Statistical Office
Real estate prices are on the rise in spite of the Corona-crisis

Apartments and houses in Germany have become more expensive, in spite of the Corona-crisis. In the second quarter, residential property prices rose an average 1.4 per cent, measured in terms of the first quarter of the year, according to the Federal Statistical office on Wednesday.

To the prior year period, an increase of 5.6 percent. Thus, the growth in the preceding quarters, moved to the Wiesbaden-based statisticians declared. However, it was a quick estimate, which was fraught with a certain degree of uncertainty.

According to the analysis of the immense economic consequences of the pandemic could affect the real estate boom so far, hardly anything. In the first quarter of the Wiesbaden-based statisticians had noted a Tightening of the real estate prices by 6.8 percent within a year and by 0.3 percent in the final quarter of 2019. Especially in big cities, but also in the country there were hefty mark-UPS.

The Corona pandemic in Germany since the spring and in the summer quarter on the economy. Some Economists had expected, therefore, with a strong damper on the housing market and falling real estate prices expected. The number of the apartment view was slumped in the Lockdown of up to 40 percent.

Short-time work, falling incomes and rising unemployment in the Corona-crisis burdening the financial situation of many people, which limited the scope for real estate purchases. On the other hand, many investors are looking for in the face of violently fluctuating exchanges, security in real estate, and low interest rates make loans more affordable.