The fear spurs the real estate crisis in Germany

The clearest evidence of this boom is a study published this week by Deutsche Bank, which states that reference German cities like Frankfurt, Hamburg and Cologne, and other children as Darmstadt, Hildeberg Bambsberg and are registering a remarkable increase prices in real estate.

The report also highlights price increases in Eastern cities such as German Potsdam, Cottbus and Rockstock. "We are experiencing phenomenal growth fueled by the fear of inflation," Franz Klinger, Deloitte expert in this field in the rotating Germanic.

The euro crisis and uncertainty in housing markets in the Mediterranean, where the Germans invest regularly, also explain a trend change that would end years of paralysis that followed the boom experienced after German unification.

Then the house building rates reached record levels, up to 520,000 homes a year. A decade later, the ratio fell as the 140,000 units.

Price rise

Although last year a slight recovery in this sector, the burgeoning demand collided with the limited availability of new homes and pushed up prices in major German cities, on campuses and in the east, to the point that "Munich, for example, banks write to their customers to know their homes to sell," says Klinger.

According to the German Association of the Construction Industry, this year is expected to increase by 4% in housing construction.

Contrary trends

The positive trend in housing supports the growth of real estate, but only in the short term, according to Klinger, who noted other factors that may have adverse effects.

For starters, only one third of the real estate industry really relies on the residential market. On the other hand, the growth of demand in the booming areas is accompanied, in other places, with depopulation, as is the case of Bremen, Essen and Dortmund.

Finally, lenders have become fearful Germans risks to you. Although Germany did not suffer a housing bubble or credit, several major regional banks requiring rescues after investing in ‘subprime’ Americans and others, such as Hypo Real Estate, bailed by the German state.