According to Bundesbank, rise in real estate prices is no longer only major cities in Germany. "The rise in prices is also increasing in area", SagteBundesbank vice-president Claudia Buch at presentation of Financial Stability report 2017 in Frankfurt. Overall, prices for condominiums and houses were last increased by 6.1 percent.

However, developments are still particularly drastic in metropolises. According to Bundesbank's model calculations, re are price exaggerations of up to 30 percent on average. In previous year, exaggerations of up to 20 percent were still calculated.

Despite rising real estate prices, Bundesbank still has no signs of a credit-driven price bubble for houses and flats. The increase would be explained above all by good economic situation and an increased demand.

In view of strong economic situation, however, Bundesbank warns of carelessness. The Financial Stability report states that re is a risk that risks to financial stability would be underestimated. "The longer booms, greater tendency to continue this in future. If we just take a look at rear view mirror, it may be that we overlook dangers that lie ahead, "said Buch. This will increase susceptibility to unexpected developments.

Date Of Update: 30 November 2017, 12:03