property
Prices of apartments and houses rise
The dynamics are increasing, according to the Association of German Pfandbrief banks. Among the big cities, it becomes more expensive for buyers, especially in Düsseldorf.
The price increase of residential properties continues after an evaluation of the pawnbrief banks. From April to June, the prices of apartments and houses rose by 1.1 percent to the previous quarter, as the Association of German Pfandbriefbanken (VDP) reports in Berlin. The climb to the previous quarter has weakened slightly by 0.1 points.
“The recovery phase on the real estate market continues,” said VDP general manager Jens Tolckmitt of the German Press Agency. According to him, the prices have increased the fifth quarter in a row. “The dynamics of residential property prices have increased again, which is clearly due to the extremely tense situation on the housing market.”
Compared to the previous year, prices are at a higher level according to the development: the increase in residential properties is 4.1 percent. The association uses real estate financing data that deliver more than 700 credit institutions to calculate price development.
Highest price increase in Düsseldorf
Among Germany’s most populous cities, the prices for the fastest in Düsseldorf (2 percent), followed by Frankfurt am Main (1.7 percent). The development in Stuttgart was weakest, where apartments and houses were 0.8 percent – i.e. below average – more expensive.
Federal Statistical Federal Office reported the first quarter reported
In the first quarter, from January to March, residential real estate, according to the Federal Statistical Office, had increased by 1.4 percent for the previous quarter. The information from the statistics office and the VDP were therefore not far apart. Data from the Federal Statistical Office for the second quarter has not yet existed.
Pfandbrief banks often finance real estate transactions
According to its own statements, the VDP belong to more than 50 members who pursue the pawnut business. Among them is the DZ Hyp from Hamburg and Münster. Pfandbriefbanken need a permission from the Bafin financial supervision. They are often specialized in real estate financing.
Path letters are a special type of bond. They have been around in Germany for many hundreds of years. Pfandbrief banks collect money from investors to finance a loan. The peculiarity is that investors also receive collateral in addition to interest. These should secure investors if a bank should become insolvent.
dpa
Source: Stern
