Germany risks the bursting of a real estate bubble. The alarm was sounded by the Bundesbank which, according to the "Financial Times", believes that apartment prices in the main cities of Germany may have been overvalued by 20%.
In the October report published yesterday by the central institute, there is talk of price increases of more than 25% which have affected the seven major cities of the country, namely Hamburg, Munich, Berlin, Cologne, Frankfurt, Stuttgart and Dusserldorf. According to the Bundesbank, the charm of the German real estate market is also restored by the low interest rates imposed after the economic crisis, which have made mortgages more accessible,
If the overvaluation of real estate were to move to rural areas of the country, warns the central institution, the risks associated with liquidity would grow exponentially. Also in the sights of the Bundesbank report is the monetary policy of the ECB, which has decided to keep interest rates at an all-time low of 0,5%.
