At present, Germany is one of the top countries in terms of living conditions, with attractive salaries, work opportunities, good public services, and support from the state. Consequently, more and more people are packing their suitcases and finding their way to cities such as Berlin, Frankfurt, Hamburg and Munich. Taking this into consideration, it is not surprising to hear that housing prices have increased greatly. Of course, there are those who fear that such rising wealth could soon take another direction toward a property bubble. This “betongold” period has led to a concrete gold rush with an uncertain outcome.
At present, German cities are enjoying the rise to wealth, with Frankfurt at the top of the list, followed by Hamburg, Monaco, Berlin and Düsseldorf. Prices in these locations have increased greatly, despite the fact that the cost per square meter remains inferior in comparison to other European cities. Properties currently cost around 25% more than their actual value. Nonetheless, it would seem that this detail has yet to worry foreign investors, who are eager to rent or buy in Berlin.
Prices have also increased in Frankfurt by 20%, reaching close to six thousand per square meter, particularly in Westend, the most chic neighborhood in the city. Luxury Houses in Frankfurt are becoming more and more on demand thanks to the BCE, that has employed a thousand new employees with the move to the new headquarters in Ostend.
The situation in the East of Germany is quite the opposite. Here, properties have remained below their market value. However, considering the difference in population and wealth of these locations it isn’t that surprising. All in all, with a relatively convenient tax system, and good job opportunities, it is safe to say that it is not necessary to live in debt just to have a roof over your head in Germany.
