“Concrete gold.” Signs of an incipient housing bubble in Germany in statistics from ZDF heute journal, which reports that many investors, especially Greeks and Spaniards, are buying urban German real estate. They frequently pay in cash. Apartment sale prices are up 26% in Düsseldorf, 28% in Frankfurt/Main, 28% in Nuremberg, 50% in Hamburg and 73% in Berlin, according to the chart at 22:35. Financial reporter Sina Mainitz said low interest rates and uncertainty about the euro are helping drive the “flight into tangible property.” Unlike in the USA’s recent housing bubble, the Germans expect the ROI will be not from resale but from raised rents.
(Bay TONE gold.)