Economists: Property prices rise a little more slowly

"The housing markets in Germany are surprisingly robust"

München
dpa

Frankfurt/Main (dpa) - After an unbroken real estate boom even during the Corona crisis, economists expect somewhat less pressure on prices in the new year. "The housing markets in Germany are surprisingly robust," said Stefan Mitropoulos, economist and real estate expert at Landesbank Hessen-Thüringen (Helaba). "No slump is to be expected, rather a breather." Instead of growth rates of five to six per cent per year, flats and houses could become more expensive by four per cent in 2021. Many experts had expected the years-long real estate boom to end with the Corona crisis. The drivers of the boom remain the demographically induced high demand, the lack of building land and the low interest rate level, explains the Gewos Institute for Urban, Regional and Housing Research. However, the pressure on the big cities is likely to diminish as more people move into the surrounding areas and the immigration of skilled foreign workers in the pandemic subsides.