It seems as if you get a lot more house for your money in Germany these days, as home prices set at more affordable prices have peaked the interest of a rather large number of people.
The general consensus as to the reason German property seems to be such a bargain is that there is a steady growth in supply of homes. You can get a very nice four bedroom, three bath with a garage, sauna, pool, and garden in the suburbs of Berlin for under $600,000 Euros. This price has peaked the interest of foreign investors looking to purchase in the area.
When compared with similar properties in Britain, Australia, and New Zealand, Germany’s prices are quite the bargain.
Why have German house prices been able to remain stable and more affordable? According to an analysis by the German property market, the reason is because Germany’s property market has never had a big boom or crash.
Before the global financial crisis, when property markets in other countries soared, Germany’s prices actually fell. In the 7 years between 2000 and 2007, Spain’s home prices soared 94 percent, New Zealand 80 percent, and Britain’s increased 80 percent, while Germany’s home prices actually decreased by 18 percent.
Germany’s property market has been marked with stability over the years.
What distinguishes Germany from other countries is that it has built more houses and flats then other countries and has zoned more land for development to be sure that there is a continual and steady supply of housing. Additionally, German builders and developers are able and willing to make sure that the building process is smooth sailing, taking into consideration supply versus demand.
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