Property-mad Germans rush into ‘concrete gold’

Unlike property-obsessed Britons, Germans have traditionally preferred to rent rather than buy. But in recent years they have been making up for lost time.

In the past five years, prices for flats in Berlin, Hamburg and Munich have jumped by 40%-50%, according to one index. In Germany as a whole, the average house price has risen by 31% in five years. So what’s going on?

Jitters over the future of the euro in the past few years have spurred a rush into ‘real’ assets, such as housing. There have also been fears, so far unjustified, of a surge in inflation [...]

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