In certain places property prices will inevitably increase
Properties type "oasis" in Europe will survive in 2012. One of them is the German market. For the first 11 months of this year in the Federal Republic housing construction increased by 4.1%, according to the company Hypoport. Analysts believe that this is only the beginning...
In 2005, for example, the increase of apartments under construction was two times less than today - 1.9% for a year. For the period January to September this year the number of sales and purchases has increased with 43% compared with same period of 2010, says a report by the Federal Statistical Office in Wiesbaden. This is the strongest increase in 20 years.
"The pace of price increases we see in Germany is a logical consequence of the increased demand and lack of adequate supply," explains Herman Vyusteveld, manager of the company DWS.
"For many people the driving force is the fear of inflation," says Heiko Tsipelman Herman, co-manager of the Association of developers. Trying to insure their assets against inflation and the increasing debt crisis in the euro area, investors actively acquire land in Germany. For the first nine months of 2011 the amount of building permits increased by 22% and apartments in residential areas grew by 27%. In this situation, the emergence of the housing bubble is unlikely, since this segment suffered for a long time from a serious shortage of housing (period of the rise of the real estate market in most developed countries).
Analysts say that the segment of real estate remains undervalued. Over the past two or three years the price of homes and houses in Germany has grown and this process will continue for several more years, given that the previous price cycle in the segment lasted a decade.