DB Research recently (29.06.2012) published a study regarding property prices in the euro area.
Euro area property prices: Germany versus the rest
Subjet of the study are prices of residential properties in the euro area.
While in all euro markets the prices for residential real estate are above the long-term average affordability, its opposite for Germany.
The exception to the general picture of overvalued markets is Germany, where
fundamental values remain at historical lows despite some price increases in
recent years. Given Germany’s status as a safe haven in Europe for investors
and in view of Germany’s likely economic outperformance of other European
countries we envisage further price gains in the German real estate market.
Prices are likely to rise fastest in cities with more than 500,000 inhabitants.
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