The German Property Market will see a result of for 44 billion € sales volume in 2007. A historic record high for Germany. According to Financial Times Deutschland (11.12.07) the volume will be an increase by about 20% in comparison to the same period last year.
International investors are still very active in the German property market but German investors are returning as well. However the result was mainly achieved before the US property market crisis but a real slow as was expected has not occurred. The financing process has tended to be longer due to funding issues in the financial markets due to the US subprime problems. This has effectively slowed down the purchase process and made financing more expensive.
This price increase in financing obviously has caused some re-negotiations of previously made offers. An increasing reluctance of owners to sell right now can be observed. When € 5 million were discussed and now € 4.5 million are discussed, an owner tends to want to wait until the price is back to 5 million. The new year should bring some interesting developments, especially for investors.
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