[{"data":1,"prerenderedAt":365},["ShallowReactive",2],{"blog-article-are-german-houses-overpriced-en":3},{"article":4,"recommendedArticles":342},{"slug":5,"title":6,"listPicture":7,"listPictureMobile":8,"listPictureWebp":9,"listPictureMobileWebp":10,"preview":11,"category":12,"author":13,"authorImage":14,"authorImageWebp":15,"authorDescription":16,"authorSlug":17,"content":18,"contentRaw":19,"order":318,"publishedAt":319,"createdAt":319,"updatedAt":320,"seoTitle":321,"seoDescription":322,"seoKeywords":323,"seoImage":324,"mainPicture":325,"mainPictureMobile":326,"mainPictureWebp":327,"mainPictureMobileWebp":328,"language":329,"subTitle":323,"actionLabel":323,"actionType":323,"actionText":323,"id":323,"introduction":330,"tableOfContentArray":331},"are-german-houses-overpriced","Are houses and apartments overpriced in Germany?","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002FWzOYyhyTAMokOXvHnzD2S\u002Fbe0599498b6e1b1ca9b6793aa88551f1\u002Foverpriced-properties-800x511.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002FuA4nQFNftSzBHKhSicAOg\u002F28f7bd04a01d1506482e088fb13118eb\u002Foverpriced-properties-380x243.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F3rXO9GPqBvwHbdkgznUjBE\u002Fa5e5b39c297abfe78b06516b8522f144\u002Foverpriced-properties-800x511.webp","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F3EWIv15Iqu4BiWD7rdUun4\u002F1cae949bdc3901a6080fabf2b24adf03\u002Foverpriced-properties-380x243.webp","Are houses and apartments overpriced in Germany? What is the actual situation on the real estate market? An analysis.","property-search","Dr. Chris Mulder","https:\u002F\u002Fa.hypofriend.de\u002Fhypofriends\u002Fdr.-christian-mulder.png","https:\u002F\u002Fa.hypofriend.de\u002Fhypofriends\u002Fdr.-christian-mulder.webp","Dr. Chris is a former Senior Economist and Manager at the IMF and The World Bank. He is a Hypofriend Co-founder.","chris","  \u003Cdiv id=\"table-of-contents\">\n    \u003Cdiv class=\"headline\">\n      Table Of Contents\n    \u003C\u002Fdiv>\n    \u003Cul>\n      \u003Cli>\n  \u003Ca @click.prevent=\"$root.$emit('scrollAnchor', $event)\" href=\"#h-what-do-german-house-price-trends-really-look-like\">\n    What do German house price trends really look like?\n  \u003C\u002Fa>\n\u003C\u002Fli>\u003Cli>\n  \u003Ca @click.prevent=\"$root.$emit('scrollAnchor', $event)\" href=\"#h-what-about-affordability\">\n    What about affordability?\n  \u003C\u002Fa>\n\u003C\u002Fli>\u003Cli>\n  \u003Ca @click.prevent=\"$root.$emit('scrollAnchor', $event)\" href=\"#h-how-do-house-prices-compare-to-rental-prices-are-they-a-sign-of-inflated-prices\">\n    How do house prices compare to rental prices? Are they a sign of inflated prices?\n  \u003C\u002Fa>\n\u003C\u002Fli>\u003Cli>\n  \u003Ca @click.prevent=\"$root.$emit('scrollAnchor', $event)\" href=\"#h-international-studies-say-what\">\n    International studies say what?\n  \u003C\u002Fa>\n\u003C\u002Fli>\u003Cli>\n  \u003Ca @click.prevent=\"$root.$emit('scrollAnchor', $event)\" href=\"#h-conclusion\">\n    Conclusion\n  \u003C\u002Fa>\n\u003C\u002Fli>\n    \u003C\u002Ful>\n  \u003C\u002Fdiv>\n\u003Cp>Most notably, it overlooks that when the rest of the world suffered from a \u003Cb>house price bubble early this century\u003C\u002Fb>, Germany saw its prices \u003Cb>decline\u003C\u002Fb>. Therefore, Germany is in a very different place than most other countries. \u003C\u002Fp>\n\u003Ch2 id=\"h-what-do-german-house-price-trends-really-look-like\">What do German house price trends really look like?\u003C\u002Fh2>\n\u003Cp>Studies that focus on the last five years overlook how much German house prices decreased in the 45 years before. \u003C\u002Fp>\n\u003Cp>Firstly, They decreased in the early eighties, when interest rates were raised in the aftermath of the oil crisis to stamp out inflation. \u003C\u002Fp>\n\u003Cp>Secondly, house prices declined following the reunification (from 1995 to 2012) when tax incentives led to a building boom at a time of declining population.\u003Cbr>\u003C\u002Fp>\n\n            \u003Cpicture>\n              \u003Csource type=\"image\u002Favif\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=avif&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=avif&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=avif&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=avif&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=avif&w=1922 2x\n                    \">\n              \u003Csource type=\"image\u002Fwebp\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=webp&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=webp&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=webp&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=webp&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?fm=webp&w=1922 2x\n                    \">\n              \u003Cimg loading=\"lazy\" class=\"image-fluid\" alt=\"german-house-prices\" sizes=\"(min-width: 961px) 961px, 100vw\" width=\"961\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?w=1922 2x\n                    \" src=\"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png?w=961\">\n            \u003C\u002Fsource>\u003C\u002Fsource>\u003C\u002Fpicture>\n          \n\u003Cp>The contrast with other countries is marked. Other countries, such as the US and Eurozone members, saw the house prices double over the last 45 years. Also, many countries suffered from a house price bubble when interest rates dropped following September 11, 2001. \u003C\u002Fp>\n\u003Cp>In contrast, when other countries suffered a bubble, in Germany, house prices declined in real terms due to the building boom!\u003C\u002Fp>\n\n            \u003Cpicture>\n              \u003Csource type=\"image\u002Favif\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=avif&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=avif&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=avif&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=avif&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=avif&w=1922 2x\n                    \">\n              \u003Csource type=\"image\u002Fwebp\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=webp&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=webp&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=webp&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=webp&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?fm=webp&w=1922 2x\n                    \">\n              \u003Cimg loading=\"lazy\" class=\"image-fluid\" alt=\"german-house-prices-declined\" sizes=\"(min-width: 961px) 961px, 100vw\" width=\"961\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?w=1922 2x\n                    \" src=\"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png?w=961\">\n            \u003C\u002Fsource>\u003C\u002Fsource>\u003C\u002Fpicture>\n          \n\u003Cp>As you can see from the above figure, house prices in Europe (green line) overall and in the US (blue line) roughly doubled over a 40-year period. In the US, house prices showed signs of a bubble in the 1997-2007 period.\u003C\u002Fp>\n\u003Ch2 id=\"h-what-about-affordability\">\u003Cb>What about affordability?\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>As a result of the gradual decline in real prices, houses in Germany are now much more affordable than they have been in a long time. In addition, affordability has increased markedly due to the decline in mortgage interest rates. \u003C\u002Fp>\n\u003Cp>These rates fell from about 6.5 percent in 2000 to an average of about 1 percent in recent periods. Even the recent price increases have barely made a dent in the improved affordability.\u003C\u002Fp>\n\u003Cp>You can use our \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fcriteria\u002Fstart\">\u003Cu>affordability calculator\u003C\u002Fu>\u003C\u002Fa> to check what you can afford. \u003C\u002Fp>\n\n            \u003Cpicture>\n              \u003Csource type=\"image\u002Favif\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=avif&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=avif&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=avif&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=avif&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=avif&w=1922 2x\n                    \">\n              \u003Csource type=\"image\u002Fwebp\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=webp&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=webp&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=webp&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=webp&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?fm=webp&w=1922 2x\n                    \">\n              \u003Cimg loading=\"lazy\" class=\"image-fluid\" alt=\"affordability-perpective-germany\" sizes=\"(min-width: 961px) 961px, 100vw\" width=\"961\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?w=1922 2x\n                    \" src=\"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png?w=961\">\n            \u003C\u002Fsource>\u003C\u002Fsource>\u003C\u002Fpicture>\n          \n\u003Ch2 id=\"h-how-do-house-prices-compare-to-rental-prices-are-they-a-sign-of-inflated-prices\">How do house prices compare to rental prices? Are they a sign of inflated prices?\u003C\u002Fh2>\n\u003Cp>The graph below on the right side looks a little alarming. It comes from the Bundesbank, whose role is to be worried, but the left graph, with a much longer time horizon, paints a rather different picture.\u003C\u002Fp>\n\u003Cp>The ratio of house price to rent is up, but still much lower than it used to be. In Germany, this ratio has always been rather high, as low interest rates and rental control tend to promote house prices. \u003C\u002Fp>\n\n            \u003Cpicture>\n              \u003Csource type=\"image\u002Favif\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=avif&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=avif&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=avif&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=avif&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=avif&w=1922 2x\n                    \">\n              \u003Csource type=\"image\u002Fwebp\" sizes=\"(min-width: 961px) 961px, 100vw\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=webp&w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=webp&w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=webp&w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=webp&w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?fm=webp&w=1922 2x\n                    \">\n              \u003Cimg loading=\"lazy\" class=\"image-fluid\" alt=\"rental-index\" sizes=\"(min-width: 961px) 961px, 100vw\" width=\"961\" srcset=\"\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?w=327 327w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?w=570 570w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?w=961 961w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?w=1200 1200w,\n                      \u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?w=1922 2x\n                    \" src=\"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png?w=961\">\n            \u003C\u002Fsource>\u003C\u002Fsource>\u003C\u002Fpicture>\n          \n\u003Cp>So despite interest rates being at an all-time low, rental yields are much higher than their historic average, indicating that house prices are historically very reasonable.\u003C\u002Fp>\n\u003Ch2 id=\"h-international-studies-say-what\">\u003Cb>International studies say what?\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>Finally, we have checked international comparisons of house prices. They confirm the picture painted by the graphs above and suggest that the German market may even be undervalued. \u003C\u002Fp>\n\u003Cp>For example, Nan Geng, in a working paper of the International Monetary Fund, suggests that German house prices in the most recent year (2016) were undervalued by 10% compared to an equilibrium. (Fundamental Drivers of House Prices in Advanced Economies, Nan Geng, July 13, 2018, IMF WP.)\u003C\u002Fp>\n\u003Cp>\u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fproperties\">Find your fair-priced dream home in Germany with our Hypofriend property search\u003C\u002Fa>\u003C\u002Fp>\n\u003Ch2 id=\"h-conclusion\">\u003Cb>Conclusion\u003C\u002Fb>\u003C\u002Fh2>\n\u003Cp>The alarm bells don't ring very true… Our main conclusion from a deep dive into German house prices is that German house prices are not overvalued. \u003C\u002Fp>\n\u003Cp>Of course, if interest rates shoot up, and somehow Germany loses control over inflation or basic fiscal parameters, house prices will no longer look so favorable. Also, if Germany were to decide to amplify the housing supply massively, e.g., create entire new cities, the housing world would look different, as land costs would come down. But we see no appetite or plans for this. \u003C\u002Fp>\n\u003Cp>Based on current interest rates, and rates to rent and income, house prices are very affordable and from a historical perspective have considerable room to grow.\u003C\u002Fp>\n\u003Cp>Nonetheless, always \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fprice.feo\">\u003Cu>check the valuation of the house or apartment you are considering buying\u003C\u002Fu>\u003C\u002Fa>. You can do so by signing up on our website. It also does pay to see many properties that are on the market! \u003C\u002Fp>",{"data":20,"content":21,"nodeType":317},{},[22,50,58,65,72,79,96,103,110,123,130,138,145,152,174,187,194,201,208,221,228,236,243,250,268,276,283,290,297],{"data":23,"content":24,"nodeType":49},{},[25,30,36,40,45],{"data":26,"marks":27,"value":28,"nodeType":29},{},[],"Most notably, it overlooks that when the rest of the world suffered from a ","text",{"data":31,"marks":32,"value":35,"nodeType":29},{},[33],{"type":34},"bold","house price bubble early this century",{"data":37,"marks":38,"value":39,"nodeType":29},{},[],", Germany saw its prices ",{"data":41,"marks":42,"value":44,"nodeType":29},{},[43],{"type":34},"decline",{"data":46,"marks":47,"value":48,"nodeType":29},{},[],". Therefore, Germany is in a very different place than most other countries. ","paragraph",{"data":51,"content":52,"nodeType":57},{},[53],{"data":54,"marks":55,"value":56,"nodeType":29},{},[],"What do German house price trends really look like?","heading-2",{"data":59,"content":60,"nodeType":49},{},[61],{"data":62,"marks":63,"value":64,"nodeType":29},{},[],"Studies that focus on the last five years overlook how much German house prices decreased in the 45 years before. ",{"data":66,"content":67,"nodeType":49},{},[68],{"data":69,"marks":70,"value":71,"nodeType":29},{},[],"Firstly, They decreased in the early eighties, when interest rates were raised in the aftermath of the oil crisis to stamp out inflation. ",{"data":73,"content":74,"nodeType":49},{},[75],{"data":76,"marks":77,"value":78,"nodeType":29},{},[],"Secondly, house prices declined following the reunification (from 1995 to 2012) when tax incentives led to a building boom at a time of declining population.\n",{"data":80,"content":86,"nodeType":87,"asset":88},{"target":81},{"sys":82},{"id":83,"type":84,"linkType":85},"2rftEpF2xcq2ht9NNYsxnF","Link","Asset",[],"embedded-asset-block",{"fileName":89,"details":90,"url":95},"german-house-prices@2x.png",{"size":91,"image":92},34657,{"width":93,"height":94},1356,1162,"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2rftEpF2xcq2ht9NNYsxnF\u002F05dbb9445803beca16b5fc9f9051f0c3\u002Fgerman-house-prices_2x.png",{"data":97,"content":98,"nodeType":49},{},[99],{"data":100,"marks":101,"value":102,"nodeType":29},{},[],"The contrast with other countries is marked. Other countries, such as the US and Eurozone members, saw the house prices double over the last 45 years. Also, many countries suffered from a house price bubble when interest rates dropped following September 11, 2001. ",{"data":104,"content":105,"nodeType":49},{},[106],{"data":107,"marks":108,"value":109,"nodeType":29},{},[],"In contrast, when other countries suffered a bubble, in Germany, house prices declined in real terms due to the building boom!",{"data":111,"content":115,"nodeType":87,"asset":116},{"target":112},{"sys":113},{"id":114,"type":84,"linkType":85},"7e3llVnKUfivbe8NjKYQcj",[],{"fileName":117,"details":118,"url":122},"german-house-prices-declined@2x.png",{"size":119,"image":120},46525,{"width":93,"height":121},954,"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F7e3llVnKUfivbe8NjKYQcj\u002Fb1724db5e5e828a35c123d31b85a1ccf\u002Fgerman-house-prices-declined_2x.png",{"data":124,"content":125,"nodeType":49},{},[126],{"data":127,"marks":128,"value":129,"nodeType":29},{},[],"As you can see from the above figure, house prices in Europe (green line) overall and in the US (blue line) roughly doubled over a 40-year period. In the US, house prices showed signs of a bubble in the 1997-2007 period.",{"data":131,"content":132,"nodeType":57},{},[133],{"data":134,"marks":135,"value":137,"nodeType":29},{},[136],{"type":34},"What about affordability?",{"data":139,"content":140,"nodeType":49},{},[141],{"data":142,"marks":143,"value":144,"nodeType":29},{},[],"As a result of the gradual decline in real prices, houses in Germany are now much more affordable than they have been in a long time. In addition, affordability has increased markedly due to the decline in mortgage interest rates. ",{"data":146,"content":147,"nodeType":49},{},[148],{"data":149,"marks":150,"value":151,"nodeType":29},{},[],"These rates fell from about 6.5 percent in 2000 to an average of about 1 percent in recent periods. Even the recent price increases have barely made a dent in the improved affordability.",{"data":153,"content":154,"nodeType":49},{},[155,159,170],{"data":156,"marks":157,"value":158,"nodeType":29},{},[],"You can use our ",{"data":160,"content":162,"nodeType":169},{"uri":161},"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fcriteria\u002Fstart",[163],{"data":164,"marks":165,"value":168,"nodeType":29},{},[166],{"type":167},"underline","affordability calculator","hyperlink",{"data":171,"marks":172,"value":173,"nodeType":29},{},[]," to check what you can afford. ",{"data":175,"content":179,"nodeType":87,"asset":180},{"target":176},{"sys":177},{"id":178,"type":84,"linkType":85},"1PRDecu4TnUadGB0kg3LUe",[],{"fileName":181,"details":182,"url":186},"affordability-perpective-germany@2x.png",{"size":183,"image":184},46910,{"width":93,"height":185},1346,"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1PRDecu4TnUadGB0kg3LUe\u002F147b12b244608242de8bf8c1a225d3d8\u002Faffordability-perpective-germany_2x.png",{"data":188,"content":189,"nodeType":57},{},[190],{"data":191,"marks":192,"value":193,"nodeType":29},{},[],"How do house prices compare to rental prices? Are they a sign of inflated prices?",{"data":195,"content":196,"nodeType":49},{},[197],{"data":198,"marks":199,"value":200,"nodeType":29},{},[],"The graph below on the right side looks a little alarming. It comes from the Bundesbank, whose role is to be worried, but the left graph, with a much longer time horizon, paints a rather different picture.",{"data":202,"content":203,"nodeType":49},{},[204],{"data":205,"marks":206,"value":207,"nodeType":29},{},[],"The ratio of house price to rent is up, but still much lower than it used to be. In Germany, this ratio has always been rather high, as low interest rates and rental control tend to promote house prices. ",{"data":209,"content":213,"nodeType":87,"asset":214},{"target":210},{"sys":211},{"id":212,"type":84,"linkType":85},"1zR4u6sTdTd6aBBFCvavKZ",[],{"fileName":215,"details":216,"url":220},"rental-index@2x.png",{"size":217,"image":218},67650,{"width":93,"height":219},1060,"\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1zR4u6sTdTd6aBBFCvavKZ\u002F739c4f3f8ddf2c13e6b5e13c82e27019\u002Frental-index_2x.png",{"data":222,"content":223,"nodeType":49},{},[224],{"data":225,"marks":226,"value":227,"nodeType":29},{},[],"So despite interest rates being at an all-time low, rental yields are much higher than their historic average, indicating that house prices are historically very reasonable.",{"data":229,"content":230,"nodeType":57},{},[231],{"data":232,"marks":233,"value":235,"nodeType":29},{},[234],{"type":34},"International studies say what?",{"data":237,"content":238,"nodeType":49},{},[239],{"data":240,"marks":241,"value":242,"nodeType":29},{},[],"Finally, we have checked international comparisons of house prices. They confirm the picture painted by the graphs above and suggest that the German market may even be undervalued. ",{"data":244,"content":245,"nodeType":49},{},[246],{"data":247,"marks":248,"value":249,"nodeType":29},{},[],"For example, Nan Geng, in a working paper of the International Monetary Fund, suggests that German house prices in the most recent year (2016) were undervalued by 10% compared to an equilibrium. (Fundamental Drivers of House Prices in Advanced Economies, Nan Geng, July 13, 2018, IMF WP.)",{"data":251,"content":252,"nodeType":49},{},[253,257,265],{"data":254,"marks":255,"value":256,"nodeType":29},{},[],"",{"data":258,"content":260,"nodeType":169},{"uri":259},"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fproperties",[261],{"data":262,"marks":263,"value":264,"nodeType":29},{},[],"Find your fair-priced dream home in Germany with our Hypofriend property search",{"data":266,"marks":267,"value":256,"nodeType":29},{},[],{"data":269,"content":270,"nodeType":57},{},[271],{"data":272,"marks":273,"value":275,"nodeType":29},{},[274],{"type":34},"Conclusion",{"data":277,"content":278,"nodeType":49},{},[279],{"data":280,"marks":281,"value":282,"nodeType":29},{},[],"The alarm bells don't ring very true… Our main conclusion from a deep dive into German house prices is that German house prices are not overvalued. ",{"data":284,"content":285,"nodeType":49},{},[286],{"data":287,"marks":288,"value":289,"nodeType":29},{},[],"Of course, if interest rates shoot up, and somehow Germany loses control over inflation or basic fiscal parameters, house prices will no longer look so favorable. Also, if Germany were to decide to amplify the housing supply massively, e.g., create entire new cities, the housing world would look different, as land costs would come down. But we see no appetite or plans for this. ",{"data":291,"content":292,"nodeType":49},{},[293],{"data":294,"marks":295,"value":296,"nodeType":29},{},[],"Based on current interest rates, and rates to rent and income, house prices are very affordable and from a historical perspective have considerable room to grow.",{"data":298,"content":299,"nodeType":49},{},[300,304,313],{"data":301,"marks":302,"value":303,"nodeType":29},{},[],"Nonetheless, always ",{"data":305,"content":307,"nodeType":169},{"uri":306},"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fprice.feo",[308],{"data":309,"marks":310,"value":312,"nodeType":29},{},[311],{"type":167},"check the valuation of the house or apartment you are considering buying",{"data":314,"marks":315,"value":316,"nodeType":29},{},[],". You can do so by signing up on our website. It also does pay to see many properties that are on the market! ","document",1,"Thu, 11 Jun 2020 16:05:31 +0000","Mon, 19 May 2025 13:27:18 +0000","German Real Estate: Overpriced or Fairly Valued?","Explore German real estate price trends, rent comparisons, and affordability insights. Find out if homes in Germany are truly overpriced.\n",null,"https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F4I8XnrDWR4SDL8FAjHKhM6\u002Fccc853496445d74ef88c1e84b366313b\u002Foverpriced-properties-800x534.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2q0WfUypqR7t88A4ydOngh\u002F85826e891f637269d5ae57372bb97083\u002Foverpriced-properties-1692x918.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002FQtB3G4W1JFrCUBou6tk2J\u002F2f959f7192ea13e5debf95e9d1398760\u002Foverpriced-properties-523x366.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F3mHq0owc9IRBWm4PvnlGF8\u002Fdebae55ea4469dacb1eb0220b26d7939\u002Foverpriced-properties-1692x918.webp","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F4El4yM4tfEs6r0e9v8n7kZ\u002F3943cc3e7a97d7ce9c633f5a80413efb\u002Foverpriced-properties-523x366.webp","en","At regular intervals, we see news in the German press warning about overpriced houses. Those views are nearly all based on the relative rapid increases of the past five or so years. But frankly, that is misleading. It overlooks what’s happened in the preceding 45 years.",[332,334,336,338,340],{"key":333,"value":56},"#h-what-do-german-house-price-trends-really-look-like",{"key":335,"value":137},"#h-what-about-affordability",{"key":337,"value":193},"#h-how-do-house-prices-compare-to-rental-prices-are-they-a-sign-of-inflated-prices",{"key":339,"value":235},"#h-international-studies-say-what",{"key":341,"value":275},"#h-conclusion",[343,353,357],{"slug":344,"title":345,"listPicture":346,"listPictureMobile":347,"listPictureWebp":348,"listPictureMobileWebp":349,"preview":350,"category":12,"categoryTitle":351,"categoryCode":352},"property-prices-germany-2026","Where It Still Makes Sense to Buy a Home in Germany – 2026","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F61qlPPB7YcT6uGtMuEZxVD\u002F0031d19efd13eccef6c230ae7fbfe6eb\u002Fnews-800x511.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2U5AF4Jzh0sbYHDa3wNoKK\u002F8cf082a20057781fed438467ba5877ed\u002Fnews-380x243.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F6bf2ZgIc6NGtMGyDDL8WdE\u002F8e617188029d1d7d7ca56c32e9b45e51\u002Fnews-800x511.webp","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1rJVpZ1NLJnsW62W5biSOf\u002Fab4284c09dfa1afc3e3670d4f879c4ee\u002Fnews-380x243.webp","For future homebuyers and investors, the question in 2026 isn't if you should buy in Germany, but where. This article examines the findings of the latest Postbank Property Atlas to reveal affordable regions with strong growth potential.","Property Search","dd",{"slug":354,"title":355,"listPicture":346,"listPictureMobile":347,"listPictureWebp":348,"listPictureMobileWebp":349,"preview":356,"category":12,"categoryTitle":351,"categoryCode":352},"buying-a-home-for-yourself-or-a-rental-property-in-germany","What's Better in Germany: Buying a Home for Yourself or a Rental Property?","In Germany, it can be a smart move to begin your homeownership journey with a rental property.",{"slug":358,"title":359,"listPicture":360,"listPictureMobile":361,"listPictureWebp":362,"listPictureMobileWebp":363,"preview":364,"category":12,"categoryTitle":351,"categoryCode":352},"benefits-investment-property-germany","Why Being a Landlord is So Attractive in Germany?","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F2v1gVQ7rW8iroGk9v5BelF\u002F042913ad467ae079a9e8b3eff5774453\u002Frent-or-buy-in-germany-800x511.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F1RJw8JzlKIZpFp8yqKyzd9\u002F73514c70b76371210677e870913a9d10\u002Frent-or-buy-in-germany-380x243.jpg","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F32i9vpXi8qTtbRP0tTzsCp\u002Fe6ffaa411151aa33b31d762369dd528d\u002Frent-or-buy-in-germany-800x511.webp","https:\u002F\u002Fimages.ctfassets.net\u002Fshj4zexxz7od\u002F5sUcTnCNyhKIzPQcrQUDGl\u002F709d66fd60ce3d5b750a42b6de9eb96f\u002Frent-or-buy-in-germany-380x243.webp","Germany has an unusually generous system for investment properties, and the returns are high. Read here what you need to know.",1792275301930]