New figures reveal that property prices in Germany rose by 5.79 per cent in the year to July 2013, driven by existing home and apartment sales.
According to Europace’s latest EPX House Price Index, prices for existing homes were up by 6.67 per cent year-on-year, while apartment values increased by 5.46 per cent in the same period. Meanwhile, the prices of newly built single- and double-family homes were up by 5.34 per cent on a year ago.
On a monthly basis, property prices in Germany increased by 0.7 per cent in July from June, with existing apartment prices (up 1.43 per cent) largely responsible for driving the growth.
However, in spite of the fact the index is at an all-time high, and that prices are expected to continue rising, Europace’s CEO Thilo Wiegand is nevertheless advising investor caution. “We expect that prices will remain stable or rise further over the next month,” he said in a statement, before warning: “The discussion on regulation in terms of rental caps and property tax is lowering the investment appeal. Construction activity, which has just picked up and is sorely needed in the urban centres, could decline, with consequences for the development of rental prices.”