Real Estate
Analyses of the situation in the construction sector and studies on the real-estate market both in Germany as a whole and in selected centres in Germany and abroad.
Dutch housing market
Dutch housing market in recovery mode
The housing market is showing signs of recovery. Housing has become more affordable, excess supply has declined, structural demand is risingand prices have stabilized. The new regulatory environment has helped to lift confidence. The new rules have improved the sustainability of the market in the long-run without triggering a regulatory shock in the short-run. Housing should also be supported by declining mortgage spreads and higher mortgage demand, although improvements in mortgage credit supply might not be visible until after the AQR/EBA stress test.go to p. 26) [more]
Talking Point
Outlook on the German housing market
In 2013, German house prices continued to increase at a rapid pace. On average, residential property prices gained more than 6% as apartment prices rose by more than 7%. Prices for single-family houses and terraced houses grew at nearly 5%. The price dynamics varied strongly. Among the 125 most important cities (BulwienGesa), twelve reported price increases exceeding 10%, compared to only seven cities in 2012, one in 2011, and none in 2010 and 2009. [more]
On the record...
Stephan Kohler on the significance of buildings for the success of the German energy turnaround
“...There are several reasons: one, for instance, is that the question of whether we should use nuclear power is a particularly emotional one which has caused a rift in society for decades. After all, the German anti-nuclear power movement is more than 40 years old. Also, renewable energy technologies enjoy a very positive image with most Germans. Of course, safe and cheap provision of electricity is of paramount importance for an industrial country like Germany....“ [more]
Housing market
Many euro area housing markets are still mean-reverting
Following up on our analysis in July 2012, we revisit the adjustment of house prices of eleven euro area countries. Our analysis of prices and affordability show that mean-reversion back to historical averages of affordability ratios continued in many countries – but is not yet complete. Adjustment is most pronounced in Ireland and Spain. In these countries, house prices could be bottoming out. German affordability ratios are also mean-reverting since 2009. However, prices are on an upward trend and affordability ratios are still below the historical German average which implies that German houses remain affordable relative to its history. [more]
Spotlight on Germany
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