According to the Bundesbank's projections, the German economy and its national property market will recover in the near future. The analysts note that despite the country's weak expansion rate on the back of the second wave of the coronavirus pandemic, its real estate market is gradually reviving.
The regulator believes that tougher lockdown measures amid an increasing number of infections may weigh on the service industry, the hotel and restaurant sector in particular. At the same time, the pandemic has had little impact on Germany's real estate market, experts emphasize. Moreover, this trend is expected to continue, and we will hardly see a sharp correction in housing prices in the near future.
Over the past decade, German property prices have soared by 50%. Experts attribute such a high demand for real estate to a tighter supply-demand balance. Even the inflated prices for urban property have not affected the market, analysts point out.
The Bundesbank management expects Europe’s largest economy to recover in the current quarter, albeit at a slower pace than in the previous quarter.
