Re. If the German economy continues to pick up, these upward pressures on house prices can only increase. " Deutsch Invest
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Actually recent news from Germany suggests that the country is indeed being affected by the credit crisis which originated in the US last year. It is now thought by commentators that the German economy has tipped into recession. From now all, all bets are off concerning German real estate. It will be best, I believe, to wait until the full amplitude of the crisis is known, before taking new positions in this market. This may well take another 12 months.
Suggestions that housing starts have dropped in the country, leading to an increased housing shortage and therefore to higher prices are misguided. For why should builders pull back when the market is booming, and prices are rising? The answer is that the economic slowdown is now here, are its effects are now directly affecting housing. Be prudent!
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