“It’s not impossible”: German property bubble threat

free currency transfer voucher

Economists have warned that sky high prices could lead to a property bubble in Germany.

Some analysts say that property prices in Berlin have shot up as much as 20% in the last year, with much of the interest coming from foreign buyers.

As overseas investors cart their money out of struggling countries such as Spain and Greece, they are increasingly turning to Germany to hoard their funds in what is perceived as a ‘safe’ economy.

Foreign buyers aiming to protect their money from ailing economies have set their sights on Europe’s biggest economy in the hope for some form of stability.

As a result, the price of real estate in Germany has greatly increased, and if this rise is followed by a crash, the country could be headed for the financial graveyard.

Together with low interest rates, low unemployment and new money flooding in from international investors, Germany may not be too far away from a sudden pop if prices keep on rising.

Kai Carstensen, an economist at the Ifo Institute in Munich, commented: “We are shielded against a bubble better than the U.S. or Ireland. But it's not impossible.”

“If we learn from the U.S. experience, we should be cautious, even if we up to now aren't in a bubble.”

Transferring money to Germany

Anyone looking to transfer money to Germany might want to review their options to find the best way to send money abroad.

If you are thinking about investing in Germany, think carefully about how you will send money there. For example, it is worth remembering that foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Germany – which you will inevitably have to do if you are planning on making a property investment, be sure to compare the market before you buy your overseas currency.

Company Details

“It’s not impossible”: German property bubble threat

Get a quick quote

Open Account with International Foreign Exchange

International Foreign Exchange are located at:
52 Brook Street, Mayfair, Greater London, W1K 5DS, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882