Interesting article in the FT.com about the relative sentiments in the European property markets. Germany holding up well - mainly due to the fact that it's not gone up in 10 years. This poor performance obviously puts the dampener on any expectation for future rises, ie past performance is a "good" indicator of future performance... I suspect the German property market (Munich and other cities) will surprise, and revert to the mean performance, ie go up significantly.
QUOTE
German house prices have remained flat or fallen over the past 15 years or so. Unsurprisingly, almost half of German owners expected the price of their house to remain unchanged over the next five years. Nevertheless, 40 per cent of Germans surveyed expected an increase over the same period
UNQUOTE
Europeans optimistic on property prices
FT.com / World - Europeans optimistic on property prices