According to a research conducted by the Hans-Böckler Association, it has been stated that around 1.9 million people in Germany cannot afford to buy a house of their own, including 1+1 houses as well as 1+0 or 45 square meters apartments.
Big Cities, Expensive Cities
It has been common knowledge that relatively small, humble cities have more affordable real estate prices than bigger, more crowded cities. Nevertheless; there is a grave need for economical housing in huge cities with lower per capita incomes like Berlin, Leipzig and Dresden as well as cities with wealthier residents such as Munich, Stuttgart or Duesseldorf with very high rents.
It has been gathered from various sources that it is getting harder and harder to buy real estate in Germany. The reason behind this phenomenon is thought to be the fact that most of the residences in Germany are recorded to be “too” valuable. The German Central Bank (Bundesbank) has conducted a research in November 2017 which declared that in 2016, 15% to 30% of houses in Germany were “too expensive” .
Reason For Rising Prices
It has been inclined that real estate prices keep rising in the most productive economy of the European Union, Germany; and this can be partly due to UK leaving the EU, as well as low interest rates. German Thrift Institution (IW) underlines that while low interests would provide an incentive for buyers, high payments demanded by brokers prove to be great obstacles.