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Michael Schier / Michael Voigtländer IW-Trends No. 1 25. March 2015 Real Estate Prices

Are Developments on the German Housing Market Still Fundamentally Justified?

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Real Estate Prices
Michael Schier / Michael Voigtländer IW-Trends No. 1 25. March 2015

Real Estate Prices

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

Are Developments on the German Housing Market Still Fundamentally Justified?

Over the last few years residential real estate prices in Germany have soared, especially in the metropolises of Munich and Berlin. This development has provoked concerns that speculation is creating a housing bubble in Germany similar to those in Spain and the United Kingdom. With the help of the User cost of Housing Approach it can be shown, however, that in most counties in Germany the current price trend is still fundamentally justified. Though in some cases dramatic, the increases are the result of property prices making up lost ground, having largely stagnated or even fallen prior to 2008. A sudden reversal of the current low interest rate policy would only trigger the slight need for correction typical of a speculative bubble. Were it to endure, however, such a policy would run the risk of changing future behaviour patterns.

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Real Estate Prices
Michael Schier / Michael Voigtländer IW-Trends No. 1 25. March 2015

Michael Schier / Michael Voigtländer: Immobilienpreise – Ist die Entwicklung am deutschen Wohnungsmarkt noch fundamental gerechtfertigt?

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

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Aufnahme eines älteren Mannes, der ein digitales Tablet benutzt, während seine Frau zu Hause eine Zeitung liest
Philipp Deschermeier IW-Trends No. 2 14. August 2023

Housing for the Elderly

Many older people share the desire to be able to live independently in the familiar surroundings of their own home for as long as possible. Accidents and illness, however, can soon put an end to such autonomy.

IW

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Christine Whitehead / Kath Scanlon / Michael Voigtländer / Jacob Karlsson / Fanny Blanc / Martina Rotolo Expertise 3. July 2023

Financialization in 13 cities – an international comparative report

Over the last 20 years, financialization of the housing market has become a topic of increasing public and political concern, especially in high-demand cities. It has also become an important element in academic discussion.

IW

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