Frankfurt may not be every City worker’s dream destination but enough bankers are preparing to head there to spark a spike in house prices.
The largest price increases in Germany have historically been in big cities like Berlin, Munich and Hamburg, according to government data. But since 2012, home prices across the country have increased by more than 30 percent, according to an index tracked by the Association of German Pfandbrief Banks. In the third quarter of 2017, the index price for residential property was up 7.8 percent, compared with the same period a year earlier, the report said.
Housing construction costs in Europe's largest economy rose by 3.1 % in August compared with the same period a year earlier, data from the Federal Statistics Office showed
After Toronto, Stockholm, Munich, Vancouver, Sydney, London and Hong Kong round out the top six, according to the banking giant's latest Global Real Estate Bubble Index
One of the prestige projects of Angela Merkel’s outgoing coalition government has been thrown into doubt after a Berlin court ruled that a recently introduced rent-control law violates Germany’s constitution.
The so-called Mietpreisbremse or “rental price brake” was introduced two years ago with the aim of barring landlords in property hotspots from increasing rents by more than 10% above a local benchmark. In June 2015 Berlin became the first German state to implement the new regulation.
Britain's plan to leave the EU has caused banks and money managers in London to look at moving parts of their business elsewhere to enable them to sell across the continent
As a major financial center and home to the European Central Bank, Frankfurt has seen considerable growth in recent years. The current population of roughly 730,000 is expected to increase to about 764,000 by 2020, according to a housing market report published in January by Deutsche Bank, and the surrounding urban area has a population of more than two million.
Frankfurt and Brussels are emerging as tempting alternatives to London as European financial hubs in part because they have cheaper accommodation costs than Paris.
Munich has grown increasingly international and has a very high standard of living, along with the highest home prices of any large city in Germany, said Constantin Graf von Preysing, a managing director at Engel & Völkers München. During the past decade, Mr. Graf von Preysing said, “prices have almost gone up 80 percent to 100 percent.”
‘Bubble index’ rates Vancouver as city with most unsustainable house prices and puts several other cities in middle of bubbles
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